Budget Speech 1976-77 Speech of Sri P. Ranga Reddi Minister for Finance
presenting the Budget for 1976-77
to the Andhra Pradesh Legislature on
the 18th February, 1976.
I rise to present the Budget of Andhra Pradesh for the year 1976-77.
The current year has witnessed stupendous problems involving fundamental issues of national security, the survival of democracy and the social and economic cohesion of the Indian society. Timely action was taken to avert the crisis with the proclamation of emergency. Currently a positive programme of action in the form of the 20-Point Economic Programme has been enunciated by the Prime Minister which gives a new impetus to meaningful economic growth with accent on the welfare of the common man. This has created a new environment of discipline and hope. The people of our State have shown their solidarity and determination in discharging this historic task of faithfully implementing the 20-Point Programme.
Purposeful economic measures aided by favourable climatic conditions have set the pace for a revitalisation of the State's economy. The signs of revival discerned in 1973- 74 became more pronounced in 1974-75 with the State's income rising from Rs.3,711.3 crores to Rs. 4,119.1 crores, registering a 11% growth. There was a record production of 90 lakh tonnes of food-grains in 1974-75 and with the generally favourable weather conditions both in Khariff and Rabi seasons, we are confident that food production will register a further growth this year. The trend has been similarly encouraging in Industrial production which registered a 14.8% growth in 1974 and 17.2% in 1975. The prospects on the industrial front continue to be promising with the improved labour situation and removal of curbs on power consumption.
The unprecedented increase in prices which was a cause of concern in an otherwise satisfactory economic situation in the previous year was brought under control by the increase in agricultural production on the one hand and on the other by a rigorous enforcement of legislative and executive measures for curbing the speculative and profiteering elements. Thus the prices of several essential commodities showed a decline over the first nine months of 1975-76 and the consumer price index also showed a decline from June to December, 1975. This is however no reason to be complacent. Therefore, besides continuing measures that will ensure supply of essential commodities at reasonable prices we are taking steps to build up a strong public distribution system to deal with any unhealthy development that might upset the situation. The State Civil Supplies Corporation that made an entry into the market last year for the procurement and distribution of rice and pulses is steadily enlarging its operations. The co-operatives also have a major role to play in the distribution of consumer products for effective control over the price line and with this view in mind the Government have taken a decision to set up Super Bazars at Taluk and Sub-Taluk level. The participation of women in the organisation of Super Bazars has been a novel feature of this year.
The favourable economic situation in the State reflected itself in the resources of the State having improved, thus enabling us to step up our developmental outlays.
Annual plan 1976-77
As the Honourable Members are aware, the outlay on the plan for 1975-76 which was Rs. 153.68 crores in the original Budget was subsequently raised to Rs. 187.50 crores. In the revised estimate for the current year this has been further increased to Rs.203.30 crores, the increase being chiefly in the Power and Irrigation sectors. The allocation for Nagarjunasagar Project which was Rs. 10 crores in the original Plan has been raised to Rs. 17 crores for which the Government of India have sanctioned additional Central assistance of Rs. 3.50 crores. Similarly, the outlay for Pochampad Project has been increased from Rs. 15 crores to Rs. 18 crores with additional Central assistance of Rs. 1.50 crores.
The outlay for the annual Plan 1976-77 included in the Budget Estimates is Rs. 238.06 crores. In the budgeted Plan the important sector-wise allocations are Rs. 16.63 crores for Agriculture, Rs.4.15 crores for Cooperation, Rs. 61.20 crores for Irrigation, Rs. 90 crores for Power, Rs.8.42 crores for Industries, Rs. 23.04 crores for Transport and Communications and Rs. 33.64 crores for Social Services.
As I had mentioned in the statement made to this House earlier, the discussions with the Planing Commission in regard to the Annual Plan 1976-77 took place on the 8th February, 1976 subsequent to the finalisation of the Budget. In these discussions we urged the need for a higher outlay particularly in the Irrigation and Power Sectors and additional Central assistance for this purpose. We are confident that such additional Central assistance would be forthcoming and that we would be able to increase the Plan outlay to Rs. 262 crores.
Almost the entire increase in the outlay from Rs. 238 crores to Rs. 262 crores will have to be allocated to the Irrigation and power sectors, the outlay on the Irrigation sector going up from Rs. 61.20 crores in the Budget to Rs. 71.30 crores and on the Power Sector, from Rs. 90 crores to Rs. 106.18 crores. The outlay on the Agriculture and Allied Services sector will go up from Rs. 16.63 crores to Rs. 17.96 crores, the increase being chiefly intended to provide sufficient allocation for the Drought Prone Areas Programme for which matching assistance will be available from the Centre. The allocation for Social Services will go up from Rs. 33.64 crores to Rs. 34.08 crores to accommodate an increase in the allocation for General Education. There is however a reduction of Rs.1.87 crores in the allocation for Road Transport Consequent on a reassessment of the resources of the Road Transport Corporation. The outlay of Rs. 262 crores does not take into account an earmarked allocation of Rs. 1.22 crores for certain roads such as Sugar-cane Cess Roads etc.
The outlay of Rs. 262 crores represents a step up of 30% over the current year's outlay. The outlays on our Plans have increased over the last 3 years from Rs. 89 crores in 1973-74 to Rs. 148 crores in 1974-75, Rs. 203 crores in 1975-76 and will now go up to Rs. 262 crores in 1976-77. The outlay in 1976-77 will be a little less than three times the outlay in 1973-74.
These outlays do not include the provision for Centrally Sponsored Schemes for which the allocation in 1976-77 is Rs. 24.89 crores. If this is included as well as Rs. 20 crores that will be available for special development schemes the total developmental outlays in 1976-77 will go up over Rs. 300 crores.
Special Development Schemes for Backward Areas
Honourable Members are aware that this is the second year of implementation of Special Programmes for the development of backward regions under the Six Point Formula. This year also, as in the last year, an amount of Rs. 18 crores has been provided by the Government of India towards financial assistance to the State Government for this purpose. The total cost of schemes so far cleared by the State Government is of the order of Rs. 17.20 crores. This includes Rs. 4.50 crores under regional level schemes for Industries ( Rs. 4.05 crores) and Higher Education ( Rs. 0.45 crores). The allocation for District level schemes includes Rs. 4.71 crores for Minor Irrigation, Rs. 2.12 crores for Rural Water Supply, Rs. 3.18 crores for Rural Electrification, Rs. 54 lakhs for Animal Husbandry 1.04 crores for Economic Support Schemes for the Welfare of Scheduled Castes and Scheduled Tribes.
In the Budget for 1976-77 provisions have been made in different sectors of development based on the allocations for 1975-76. While working out the sector-wise allocation for each region care has, however, been taken to provide for spill-over commitments in respect of schemes taken up in 1974-75 and 1975-76. These are only tentative allocations which will be modified suitably with reference to the recommendations of the Planning and Development Committees and the State Planning Board. In addition Rs. 2 crores have been provided for development of Twin Cities.
I am happy to inform the House that the Kharif production of food-grains has reached a level higher than that of any previous year, in spite of heavy and unseasonal rains. As against the total production of food-grains of 58.09 lakh tonnes during 1974-75 Kharriff, preliminary estimates of production during Kharriff 1975 is estimated at 61 lakh tonnes, registering an improvement of around 5%. The area under Rabi in the present season is likely to increase, as the irrigation sources are full in many areas due to late rains. Hence in the normal course Rabi production may also be expected to go up. The Government are confident that agricultural year 1975-74 will close with yet another impressive crop production performance.
Honourable Members are aware of the marketing difficulties in regard to certain crops experienced by the farmers this year. Reports were received by Government from certain areas, that prices were ruling at unduly low level and that market transactions were also slow. This was at the beginning of the Kharriff marketing season. Government immediately took prompt action to open purchase centres on behalf of the Food Corporation of India and other agencies to purchase produce from the farmers. I am happy to say that position has largely stabilised now.
The High-yielding varieties programme which is the main plank of the Agriculture Department in agricultural promotion, made further impressive advance during the year. In all the important crops the achievements have been higher than the targets.
Fertilisers play a very important role in crop production and the agricultural progress of a State is largely measure had in terms of the consumption of fertilisers. During Kharriff 1975, fertiliser consumption recorded an increase, particularly under Nitrogenous Fertilisers of about 20%. There is now no shortage of fertilisers but the Government are keeping an alert watch over the situation and the present system of rationalised distribution through cards issued to ryots continues to work satisfactorily. A large number of fertilizer manufacturers from all parts of India have come to recognise Andhra Pradesh as having large potential for absorbing fertilisers and have intensified their marketing efforts in the State.
Government are conscious of the need to further improve and streamline the agricultural administration. With this end in view, a policy decision has been taken to separate the Agriculture Department into 2 wings, viz., extension and input wings. The intention will be to see that the attention of the technical staff is not unduly taken away in routine distribution of inputs or accounting.
Government are also contemplating how best further to improve the marketing, warehousing and other infrastructure arrangements, so that advance in agricultural production is accompanied by proper machinery to take care of the distribution and marketing of the production.
The task of channelising a larger volume of credit through the agency of the co-operatives has gained urgency in view of the Ordinance promulgated providing for a moratorium on the recovery of debts owned by the small farmers, the landless labourers and the artisans. I am happy to inform the House that the Co-operatives in the State have risen to the challenge and disbursed credit to the tune of Rs. 52 crores in the Kharriff season alone, an increase of over 62% from last year. There would be no let up in our efforts for a promising Rabi season. At this rate the total short-term credit for this year would be about three times the average of the Fourth Plan.
In the field of long-term credit, the accent has been shifted from mortgage to development. The Andhra Pradesh Co-operative Central Land Mortgage Bank now known as Andhra Pradesh Co-operative Central Agricultural Development Bank is expected to disburse credit to the tune of Rs. 24 crores, an increase of about 33% over last year.
As the Honourable Members are aware the co-operative movement as a whole is being increasingly attuned to the welfare of the weaker sections. However, a specific provision of Rs. 75 lakhs which represents an increase of 50% over the current year's provision is being made for organising co-operatives exclusively for weaker sections.
Conscious efforts towards mobilisation of resources are called for if the co-operatives have to discharge the increasing responsibilities devolving on them now. Hence Co-operative Institutions in the State have been directed to keep their deposits only with the Co-operative Banks. Like-wise, Government have asked the statutory boards and Government Corporation to keep a portion of their funds with the Co-operative Banks. While taking this action, Government have also decided that deposits of governmental institutions with different banks should have a broad relationship to their investment efforts in the development programme of the State. It is hoped that with these and allied measures the Co-operative Banks will be able to render greater assistance to the agriculturists and weaker sections in our State.
Animal husbandry and dairy development
Animal Husbandry activities have come to occupy an important position in the over all development of the economy of the State. The investments in this sector have been stepped up this year, keeping in view the requirements of Drought Prone Areas and their special relevance to weaker sections. Apart from strengthening and expanding the veterinary institutions in general, four new Cattle Development Blocks have been established to cater to the backward areas. An Indo-Swiss project to produce and supply frozen semen of Brown Swiss breed is being established in Visakhapatnam this year for improving the local breed. Under a Centrally Sponsored Scheme an exotic Cattle Breeding Farm at Banawasi and a Frozen Semen Bank at Nandyal are proposed to be established.
The outlay for the Dairy Development Corporation in the current year has been increased from Rs. 85 lakhs to Rs. 153 lakhs, for expeditious completion of its Projects. The outlay for 1976-77 is Rs. 135 lakhs. The Milk Powder Factory, Hyderabad was commissioned this year and the Feeder Balancing unit at Sangam Jagarlamudi and the Modern Dairy at Visakhapatnam are expected to be completed next year.
In spite of the long coast line, we have not so far succeeded in fully exploiting the Fisheries wealth for want of infra structural base involving heavy investments. Hence integrated marine development projects covering fishing harbours, shore facilities and processing plants have been prepared for Visakhapatnam, Kakinada and Nizampatnam and the World Bank has been approached for assistance. Pending a final decision in this regard, the Government of India have sanctioned the construction of a Fisheries Harbour along with the outer harbour at Visakhapatnam.
The Fisheries Corporation which has been set-up to act as a marketing agency to protect the fishermen from the clutches of the middle men and ensure fair price for their catches has entered the market this year. The Corporation has also placed orders for two Mexican trawlers for purposes of deep sea fishing.
The destruction of forest wealth through indiscriminate felling by contractors has been engaging the attention of the Government for some time and a decision has been taken this year to dispense with the practice of selling fuel and timber coupes to private agencies and to take up departmental extraction in a phased manner. To begin with, this system has been introduced in East Godavari, Khamam, Kurnool and parts of Nizamabad and Prakasam districts. While protection and conservation of existing forests is essential the increasing demand for wood for industrial purposes has put a premium on man-made forests for replenish the depleting forest resources. To avail of institutional credit for a commercial venture of this nature, the Forest Corporation has been set-up this year with an authorised share capital of Rs. 1 crore. The Corporation prepared a Project for covering 18,000 hectares with Bamboo and Eucalyptus involving a financial outlay of Rs. 440 lakhs, which is proposed to be submitted to the Agricultural Refinance Corporation for financing. For initiating preliminary action like raising of nurseries, the State has so far released Rs. 20 lakhs to the Corporation.
The outlay on irrigation has been stepped up considerably during the course of the year from Rs. 38 crores originally budgeted to Rs. 59 crores with a view to accelerate the progress of work under the major and medium Irrigation Projects. As the Honourable Members are aware, we have been pleading with the Government of India for additional Central assistance for this sector as the completion of these projects would benefit not only the State but the country as a whole. Honourable Members would be happy to note that the Government of India have agreed to provide advance additional Central assistance of Rs. 3.50 crores for Nagarjunasagar and Rs. 1.50 crores for Pochampad. With this assistance, the outlay on Nagarjunasagar has been stepped up to Rs. 17 crores this year and for Pochampad to Rs. 18 crores.
With the increase in provision, work on the canals up to mile 102 on the right side, mile 111 on the main Canal and mile 10/6 on 21st branch Canal has been taken up and an irrigation potential of 38,000 acres will be created by June, 1976. In Budget Estimate 1976-77 the provision has has been made is Rs. 13.50 crores which equivalent to the amount provided by the State Government this year. In the increased allocation for Irrigation in the Rs. 262 crores Plan, this will go up to Rs. 18 crores. We have also posed this project to the World Bank for assistance as an early completion of this project would enable creation of additional irrigation potential of 1 million acres.
Under Pochampad Project, the irrigation potential created by June, 1975 was 1.45 lakh acres and with the enhanced outlay of Rs. 18 crores made available during the current year and an equal provision for next year, it will be possible to create an additional irrigation potential of 1.10 lakh acres by June, 1977. Excavation of the main Canal up to 116 K.M. Expect the deep cut at 82 K.M. To 85 K.M. And all distributaries up to 82 K.M. Will be completed by June, 1976. Further work on main canal from 116 K.M. To 123 K.M. And excavation of distributaries 83-86 will be in progress. The lining of main canal will be completed up to 34 K.M. By June, 1976 and up to 68 K.M. In 1976-77.
The work on the Lower Manair Dam has gained momentum with the earmarking of Rs. 1 crore out of the funds for Pochampad this year and it will be accelerated further with the earmarking of Rs. 3 crores for this work next year.
Honourable members are aware that the World Bank has agreed to give a credit of 45 Million Dollars for completing the Godavari Barrage and according to the time schedule fixed, it has to be completed within a period of 4 years. With the stepping up of outlay during the current year from Rs. 3 crores to Rs. 7 crores it has become possible to let out work on all four arms of the Godavari Barrage and the balance work on Ralli and Sub-structure base for Dowleswaram and Vizzeswaram arms are being tackled this year. For the next year, the requirement of funds is Rs. 11 crores but we have made a Budget provision of Rs. 5 crores as it was not possible for us to allot more funds in view of our commitments in other sectors. However, in the Rs. 262 crores Plan this allocation will be increased to Rs. 11 crores.
The provision for Vamsadhara has been enhanced in the current year from Rs. 100 lakhs to Rs. 300 lakhs, and the Budget proposals contain a provision of Rs. 400 lakhs for next year. The work on Nizam-sagar also gained momentum with the allocation of an additional amount of Rs. 100 lakhs during the course of this year and to keep up the tempo Rs. 200 lakhs have been provided in next years Budget. Rs. 300 lakhs have been provided for Tungabhadra High Level Canal-Stage II and additional funds have been allocated for other spill-over medium irrigation schemes also, with a view to complete them at the earliest. Four medium irrigation schemes will be completed during next year.
We have also started work on six new medium irrigation schemes in addition to Somasila project in Nellore district with a modest outlay of Rs. 100 lakhs this year. We propose to increase the outlay of Rs. 5 crores next year.
The Minor Irrigation Sector has been given importance in the plans particularly as an instrument of rapid and well dispersed agricultural development. The provision for the current year has been increased from Rs. 270 lakhs to Rs. 378 lakhs. More than an equal amount will be available for Minor Irrigation from the Six Point Formula Funds and the Drought Prone Area Programmes. In the coming year, the Plan provision is Rs. 420 lakhs and it is hoped that substantial amounts would be forthcoming next year also from the other programmes.
The Irrigation Development Corporation which started functioning in September 1974 has taken up investigation and execution of lift irrigation schemes and tube wells. The Corporation, has prepared a tentative plan for 32 lift irrigation schemes at an estimated cost of Rs. 1,200 lakhs to irrigation 80,000 acres before the end of the Fifth Five-Year Plan. Feasibility reports in respect of eight Lift Irrigation schemes have already been prepared and sent to the Banks for obtaining institutional finance. Three tube wells supplying water to about 300 acres and one lift irrigation scheme with irrigation potential of 2,000 acres have already been completed.
Command area development
Government are anxious that the gap between the creation of irrigation potential and its utilisation should be reduced to the minimum. Ayacut development is an exceedingly complicated task requiring a high degree of organizational and administrative inputs in regard to the services handled by different departments involved in this common endeavour. Besides creating a Command Area Development Department at the State level, Project Administrators have been appointed for each of the four Command Areas to coordinate the work of the various departments at the field level. In view of the large investments required for achieving the planned development of the Ayacut the project has been posed to the World Bank for its assistance and the Appraisal Team of the World Bank is expected to finalise its recommendations shortly. A provision of Rs. 175 lakhs has been made for the next year.
To meet the increasing needs of industry and agriculture highest priority has continued to be accorded to the Power Sector in the plan. In the current year the outlay on power has been raised from Rs. 54 crores to Rs. 71.03 crores. In the Budget for next year this has been raised further to Rs. 90 crores. In the discussions we had with Planning Commission recently the outlay on this sector has been further increased to Rs. 106.18 crores. It will thus be seen that the step up in Power Sector in the next year will be 50% over the current year.
Owing to good showers the water position at the Hydro reservoirs has been satisfactory and restriction on consumption of power have been removed. The installed capacity which stood at 888 M W will go up by 100 M W with the commissioning of the first unit at Lower Sileru this year. During next year it is proposed to commission the 2nd 100 M W unit at lower Sileru and 2 more units of 110 M W each at Kothagudem-stage IV thus increasing the installed capacity to 1,308 M W. With the considerable increase in outlays work on Vijayawada Thermal Station and Nagarjunasagar Hydro-Electric Scheme will gain momentum.
The reduction in transmission losses is as important as generation of Power if the installed capacity is to be fully made use of. The 220 K V line between Hampi and Gooti has been charged this year and the Nellore-Tamilnadu border 220 K V line which forms inter-state link in the southern grid will be completed soon. The lower Sileru-Bommur 220 K V line will be commissioned during next year.
The outlay indicated in the budget for next year for Srisailam Project is Rs. 17 crores. As a result of our discussions with the Planning Commission, the outlay will go up further to Rs. 25 crores. In the current year, work on the Power Tunnel has been completed and with this more than 100% increase in outlay next year over this year it is proposed to accelerate the civil works on this Project.
The rural Electrification Corporation has so far sanctioned 107 schemes including three Rural Electric Co-operative societies at an estimated cost of Rs. 40 crores. These cover 3,700 villages and 55,000 pump-sets. In the current year, 256 villages have so far been electrified and 7,800 pump-sets have been energised. The programme for next year consists of electrifying 500 villages and energisation of 11,000 pump-sets. The Rural Electrification Corporation has also sanctioned 11 schemes under the Minimum Needs Programme covering 500 villages in Tribal Development blocks. While undertaking electrification of 1,619 Harijan-wadas in villages which are already electrified, care has been taken to ensure that all the new villages now programmed for electrification cover the Harijan-wadas also.
The fact that our State is relatively back- ward in terms of industrial development has been causing concern to us for quite some time. However we are happy that in this field we are now poised for a rapid industrial growth. A climate for substantial industrial enterprise has now been created. Our efforts for building up entrepreneurial skills in the State have borne fruit. At the same time, the entrepreneurs outside the State are also finding the environment congenial for investment in the State. The letters for intent and incenses received from the Government of India during last year was twice that of the previous year. In the current year itself we have received already 74 letters of intent involving an estimated capital investment of Rs. 135 crores. In the field of small Industries too, the position is encouraging and since the intensive campaigns initiated in May, 1976, 4,800 new industrial units involving an investment of Rs. 36 crores have been registered. Over 1,000 small business ventures benefiting 2 2,400 educated persons have also been registered.
The plan investments in the field of industries and mining for the next year are of the order of Rs. 842 lakhs nearly a four-fold increase over the level of 1973-74. As the Honourable members are aware this is expected to attract a manifold matching investments in this sector.
One of the most important developments in the current year has been the setting up of the Andhra Pradesh State Textile Development Corporation with a view to serve the large number of weavers and garment manufacturers. The Corporation has been charged with the responsibility of attending to the marketing problems of Handloom cloth and garments. The corporation has already obtained export orders from Germany and Switzerland. An amount of Rs. 50 lakhs is provided as share capital in the budget for next year to enable the orgainsation to expand its activities furthers. Yet another activity involving a large number of beneficiaries is Sericulture and intensive efforts are now being made to bring about more average under mulberry cultivation.
With a view to expedite completion of the Sugar factories for which Letters of intent have already been received, the allocation for Co-operative Sugar Factories has been stepped up by Rs. 1 crore next year. For effectively supervising the activities of the Co-operative Sugar Factories which are increasing in number, a separate Directorate of Sugar has also been created during the course of this year.
The favourable climate for industrialisation the State has resulted in increasing demands on finances from the Andhra Pradesh State Financial Corporation. In the current year the sanctions are estimated to reach a level of about Rs. 12 crores. This has necessitated doubling of the plan provision for this Corporation to Rs. 30 lakhs for next year.
The Industrial Development Area at Patancheruvu taken up by the Andhra Pradesh Industrial Infra-structure corporation was inaugurated last year and I am happy to inform the House that an area of 720 acres has already been allotted for 31 industrial units. To meet the increasing demands on this Corporation the Plan provision was increased from Rs. 45 lakhs to Rs. 125 lakhs during the course of this year itself. A similar provision has been made for next year also.
As on date 59 units promoted or assisted by the Andhra Pradesh Industrial Development Corporation are in production at a capital cost of Rs. 154 crores. Moreover, a 48 Major Projects are now under construction with a capital cost of Rs. 237 crores and once these go into production, it is expected to make a substantial impact on the industrial atmosphere of the State. Similarly, the Andhra Pradesh Small Scale Industrial Development Corporation has also been promoting a number of small units. A note-worthy effort of the Corporation is the setting up of an Electronic Testing and Development Centre in Hyderabad recently for assisting the Small an Medium Scale Industries for testing and development of new products.
An important feature of the working of all these Corporations has been the coordinate and intensive efforts at not only promoting new Industries but in ensuring that these were appropriately spread over the back ward areas of the State.
In the field of mining, the Andhra Pradesh Mining Corporation is launching upon two major Projects, both in the back ward areas of the State. Work on the Barrytes unit at Managampet in Cuddapah district has already started at a total estimated cost of over Rs. 1 crore. The Mylaram Copper Unit in Khammam district is also programmed involving an outlay of more than Rs. 1 crore. Efforts are taking up large scale exploitation and processing of Asbestos are being made and hopefully this would fructify next year.
Film Development Corporation
Hon'ble Members are aware that the Government have been devising various ways of attracting the establishment of film industry in the twin cities. As the various incentives that were earlier offered were not sufficient to induce the investors to establish their industry here, it has been decided to assist the industrialists desirous of setting up film industry in our State by sanction of loans in addition to the subsidy of Rs. 1 lakh for films produced in our State. To attract institutional finance, the Andhra Pradesh Film Development Corporation has been constituted and Rs. 84 lakh have been improve had for this organisation in the coming year. Loans have already been sanctioned for setting up Studios at Hyderabad. The Corporation also proposes to sanction loans for construction of cinema halls in addition to promoting construction of Auditoria in various important towns of our State.
Out of the total provision of Rs. 463 lakhs for General Education, the allocation under the Minimum Needs Programme for Elementary Education including Teachers Training is Rs. 216 lakhs. During the current year, the stipendary teachers appointed under the half-a-million jobs programme have been absorbed as regular teachers. 12 Teacher Training Institutes have been revived. The target for additional enrolment in classes 1 to 7 for 1976-77 is 1.10 lakhs. A provision of Rs. 33 lakhs has been made in the Plan for the Mid-day Meals Programme besides a non-Plan provision of Rs. 61 lakhs. A scheme for non-formal education for children in the age group 6-14 and for youth in the age group 15-25 has been taken up in two districts viz., Krishna and Khammam one with assistance from the Government of India and the other from the State Plan.
The provision for Secondary Education is Rs. 55.60 lakhs. The enrolment at this level is likely to reach 5 lakhs at the end of 1976-77. A Residential School for tribal children has been opened at Kinnerasani on the same basis as the three existing Residential Schools at Sarvel, kodeigenahalli and Tadikonda. Provision has been made for Adult Literacy programmes and for grant-in-aid to Telugu schools outside Andhra Pradesh.
The provision for Junior Colleges in the Plan for 1976-77 is Rs. 65.60 lakhs. During the current year 14 Government Junior Colleges have been started besides permission being given to 29 private Junior Colleges. Diversified courses have been started in five Junior Colleges. A Government College has been started in Kadiri. In the Budget for 1976-77 a provision of Rs. 34 lakhs has been made for college buildings. As Hon'ble Members are aware the State Government have decided to establish new Universities at Warangal and Guntur and the University Grants Commission has communicated its concurrence to their establishment as unitary Universities. Rs. 20 lakhs has already been sanctioned for each of these Universities with funds available under Special Development schemes. A further allocation for these two Universities from the Special Development funds will be considered in 1976-77 also.
In view of the International Women's Year, Government have constituted a Committee for Women's Education to study and make recommendations to Government to improve the extent and quality of Women's education at all levels in the State. Government have issued orders admitting 10 Private Junior Colleges for Girls to 50% grant-in-aid from the year 1975-76. Government have also sanctioned the establishment of Women's Polytechnic at Tirupati under the management of Tirumala-Tirupati Devasthanams during this year.
The Urdu Academy, the Andhra Pradesh Balala Academy and the International Telugu Institute have been set up during the current year.
The liberalised pension rules have been extended to teachers in aided colleges. Relief has also been given to the teacher pensioners of all categories i.e., pensioners as well as those in receipt of financial assistance.
Government have issued orders treating the employees of Zilla Grandhalaya Samasthas on par with the Local Body employees and have decided to sanction Rs. 57 lakhs as grants to these Samasthas without insisting on matching contribution being collected, so as to enable then to meet the expenditure on their establishment.
With a view to encouraging sports particularly in the rural areas, the Government have decided to increase the various grants under this item from Rs. 7 lakhs to Rs. 23 lakhs. The grant to the Sports Council has been increased from Rs. 7 lakhs to Rs. 11.50 lakhs. Rs. 5.25 lakhs will be provided for giving grants to the District Sports Councils at the rate of Rs. 25,000 each and Rs. 3.24 lakhs for grants to the Panchayat Samithis at the rate of Rs. 1,000 per Samithi. Rs. 3 lakhs is proposed to be provided for matching contributions for the Districts for development of play-fields, construction of mini stadia etc., where 50 per cent of the total amount is raised locally.
Transport and Communications
The provision for communications in the Plans in the past had to be modest in view of heavy commitments on Irrigation and Power Projects. However, during the course of this year, the provision under Public Works Roads has been doubled from Rs. 200 lakhs to Rs. 400 lakhs which will be utilized mainly to expedite the completion of spill-over works and to provide a few essential roads particularly in tribal areas.
In addition, as the Hon'ble Members are aware the Government have enacted Legislation imposing a cess on royalty in respect of certain minerals with a view to utilising the amount of improving infra-structure facilities in the mining areas. As a first step it is proposed to take up roads in the mining areas and a sum of Rs. 40 lakhs has been made in the coming year's Budget for this purpose.
The Government have also imposed Toll Tax in respect of certain bridges and the anticipated revenue of Rs. 32 lakhs has been provided in the next Year's Budget for improvement of roads and construction of bridges. For improvement of roads leading to the sugar factories, the Government have decided to make a total budgetary provision of Rs. 1 crore for the next year, an increase of 100% over the current year.
A plan of Rs. 16.87 crores has been proposed for the Road Transport Corporation based on State Government's contribution of Rs. 5.89 crores and internal resources of the Road Transport Corporation of Rs. 10.98 crores.
Medical and Public Health
In order to deliver an integrated package of Health, Nutrition and Family Planning Schemes to the remote rural areas, the Minimum Needs Programme was started in 1974-75. During 1975-76 an amount of Rs. 105 lakhs was allotted for this programme. Out of this an amount of Rs. 61.16 lakhs was set apart for construction works and remaining Rs. 43.84 lakhs for other schemes.
During this year construction of buildings and quarters for Medical Officers and staff was taken up in four Primary Health Centres in the tribal areas of Visakhapatnam and East Godavari districts. Two Primary Health Centres were taken up for expansion to 30-bedded hospitals. Construction of buildings for 84 sub-centres was also taken during this year.
For 1976-77 the provision for the Minimum Needs Programme has been stepped up to Rs. 127.43 lakhs while Rs. 22.83 lakhs has been allocated for other Public Health Schemes. A provision of Rs. 97.04 lakhs has been made for medical schemes.
During the year 1975-76 the bed strength in 12 Taluk Hospitals was increased from 10 to 22. Post of Women Assistant Surgeons were created for 24 Taluk Hospitals where there were no posts at present. 15 posts of Dental Assistant Surgeons were also sanctioned for Taluk Hospitals.
Keeping in view the problem of providing modern and adequate medical facilities in the rural areas within the easy reach of the population, and the high degree of unemployment currently prevailing among the medical graduates, the State Government have sanctioned a scheme for appointment of 100 Hon Rural Medical Officers each in Allopathy and Indian Medicine in selected villages which are far away from the Primary Health Centres and Taluk Hospitals.
Government have taken over H E H the Nizam's Orthopaedic Hospital and they propose to develop certain super-specialities in this hospital.
Housing and Urban Development
The allocation for the Housing Board in the Plan for 1976-77 is Rs. 165 lakhs. It is expected that within this amount the provision for Middle Income Group Housing will be Rs. 16 lakhs, Low-Income Group Housing Rs. 28 lakhs, Housing for economically weaker sections Rs. 66 lakhs and for land acquisition Rs. 55 lakhs. Rs. 40 lakhs have been provided for the Police Housing Corporation. An amount of Rs. 10 lakhs has been provided for Subsidised Industrial Housing and Rs. 24.35 lakhs for slum clearance schemes in Municipalities and Rs. 20 lakhs for slum clearance schemes in the twin cities under the Minimum Needs Programme.
Consequent on the passage of Bill relating to the establishment of Development Authorities for Urban areas, the Hyderabad Urban Development Authority has been created this year. A massive programme for development of selected urban areas in an integrated fashion is contemplated by the Government of India. In order to take full advantage of this programme and also more generally to accelerate the tempo of activity in this sector, the allocation is proposed to be increased from Rs. 30 lakhs this year to Rs. 130 lakhs next year. This would be in addition to a provision of Rs. 2 crores for the development of twin cities under the Six Point Formula.
Rural and Urban Water Supply Schemes
Provision of drinking water for all the villages and hamlets particularly, those inhabited by Harijans, has been engaging the attention of the Government for quite some time. A provision of Rs. 2 crores in the current year as well as the next has been made for this programme. In addition, an equal amount is likely to be provided from the Special Development Funds for accelerated development of backward areas.
Urban areas by their very nature require concentrated investments to meet the water requirements of industrial establishments and large concentrations of people. Full requirements of funds for expeditious completion of the Mehadrigadda Water Supply Scheme have been provided so that the emerging demands of the industrial belt at Visakhapatnam are adequately met. In regard to the twin cities, over Rs. 5 crores is being provided for Manjeera Water Supply Scheme so that the tempo of activity is substantially stepped up having over-come the initial problems of acquisition of the requisite materials. For Warangal Water Supply Scheme a provision of Rs. 50 lakhs has been made. A provision of Rs. 2.23 crores has been made for schemes of other Municipalities including loans from the Life Insurance Corporation.
Special Schemes for Small and Marginal Farmers and
Drought Prone Area
The Government of India agreed to establish 12 more small farmers development agencies in our State. In the first two years of the Fifth Plan we have extended this programme to 10 districts and the remaining two districts of Krishna and Guntur will get the benefit of this programme in the coming year. While the agencies are provided funds by the Government of India for the implementation of the various programmes, the creation of infra-structure is still the primary responsibility of the State Government. The provision made for next year for this purpose is Rs. 25 lakhs. Besides this, assistance from the Government of India and institutional finances will be available for these agencies.
The Drought Prone Areas Programme is being implemented in the districts of Ananthapur, Kurnool, Cuddapah, Chittoor, Mahabubnagar, Nalgonda and Prakasam through the District Development Authorities that have been set up last year. The basic strategy adopted in these projects is an integrated development of the area to combat the rigorous of drought while at the same time providing economic occupation to the weaker sections. The State's matching contribution provided in the Budget for next year is Rs. 225 lakhs. This will, however, have to be revised to Rs. 313 lakhs at the time the Plan is revised to enable us to match the assistance that will be available from the Centre.
Welfare of Weaker Sections
The Hon'ble Members are aware of the substantial public investments that have been programmed for the welfare of the weaker sections in the recent past. This year, however, we have taken far-reaching steps in terms of a Legislative and Institutional package of measures for bringing about radical changes in the rural sector in favour of the weaker sections. These include tackling of the primary problem of land ownership through implementation of land reforms as well as distribution of Government land; revision of minimum wages for agricultural labour; moratorium on rural indebtedness; abolition of bonded labour; conferring of rights of ownership on homesteads on private lands; revision of land acquisition act for house-sites and creation of Social Welfare Fund.
A massive drive has been organised to acquire land for distribution to the weaker sections for dwelling purposes. The financial and administrative constraints have been overcome through suitable amendments to the Land Acquisition Act. The allocation for the acquisition of house-sites programme has been increased to Rs. 3.50 crores in the next year as compared to Rs. 2.50 crores during the current year. In the current year itself an estimated 2.70 lakh beneficiaries have already been covered under the programme of acquisition of house-sites.
The Government felt that there should be greater involvement of voluntary institutions in the matter of the upliftment of the weaker sections. With this end in view, a Social Welfare Fund of Rs. 30 lakhs has been created to assist and encourage a variety of voluntary institutions for this purpose.
In order to ensure greater attention to the programmes for Backward Classes, a direct rate of Backward Classes Welfare has been created bifurcating the Directorate of Social Welfare. An increase of Rs. 25 lakhs each under the Plan has been made for Harijan Welfare as well as Backward Classes compared to last year. A further stepping up of the same order is programmed for next year also. The allocation for the Director of Harijan Welfare in 1976-77 is Rs. 141 lakhs of which Rs. 91 lakhs is for educational programmes and Rs. 50 lakhs for programmes intended for economic support. Similarly, an amount of Rs. 79 lakhs has been provided for Director Backward Classes Welfare consisting of Rs. 36 lakhs for educational programmes and Rs. 43 lakhs for economic support programmes. Apart from the conscious effort to identify flow of investible funds from the general sector to these weaker sections, special efforts are being made to attract institutional finances for economic support programmes through the two Corporations that have been established. The two Corporations together have so far put on ground schemes costing more than Rs. 6 crores covering around 44,000 beneficiaries. The share capital base of these Corporations has been strengthened this year to cover a wider circle of programmes and people.
The Government are also considering proposals for implementation and follow up action on the Legislation passed by Parliament in regard to vacant lands in urban areas to enable distribution of house-sites to the weaker sections.
Hon'ble Members are aware that the Government have taken up a policy of integrated and co-ordinated development of identified areas of tribal concentration. The channelling of various investible funds through a single organisation is part of this project involving establishment of Integrated Tribal Development Agencies. Four of them had already been established and two more agencies are likely to be established soon. All the Tribal Development Projects together may account for an investment of over Rs. 45 crores from all sources for the Fifth Plan period of which the contribution from the Government of India may be of the order of Rs. 7 crores. The Government of India have in addition to releasing Rs. 40 lakhs in the previous year agreed to release Rs. 108 lakhs during the current year for taking up various activities like Crop and Animal Husbandry, Minor Irrigation and other allied sectors having influence on the economy of the tribal population. The Girijan Co-operative Corporation continues to serve the tribals through purchase of minor forest produce and distribution of essential commodities with its network of Primaries and Daily Requirement Depots. The Corporation is negotiating with the National Co-operative Development Corporation for an assistance of about Rs. 100 lakhs for its marketing activities. The Plan provision for tribal welfare has been enhanced to Rs. 135 lakhs next year.
With the designation of the year 1975 as International Women's Year for promotion of equality between men and women and full integration of women in developmental process, the Women Welfare Programmes acquired a new perspective. In order to take up schemes intended to improve the economic condition of women the Government set up the Andhra Pradesh Women's Co-operative Finance Corporation with an initial share capital contribution of Rs. 10 lakhs. The first set of 40 schemes of self-employment have been formulated keeping in view the availability of raw material, the traditional skills and technical know-how possessed by women and the market trends. Recognising the fact that technology and science have opened up new avenues of employment for women, a Women's Technological Training Institute is being established in Hyderabad for affording training in modern technology like television, printing etc. An Integrated Child Development Services Scheme has also been introduced in the current year with the assistance of Government of India in two Blocks in the State with the objective of delivering a package of services covering health, nutrition and pre-school education of children.
As Hon'ble Members are aware, the Government have taken up the implementation of land reforms in a determined and vigorous manner. About 4.50 lakh declarations have been received. To enquire into the declarations and to determine surplus land in each case, 70 Land Reforms Tribunals have been set up all over the State. 311 Special Deputy Tahsildars have been trained and put on the job for verification of the declarations received. Over 2.15 lakh declarations have been verified by the Special Revenue staff and the Tribunals have disposed of 84,871 cases of which about 4,000 are surplus cases, the surplus land declared being 70,329 acres. The implementation of the Act is thus in full swing and it is expected that about 10 lakh acres of land would be rendered surplus under the Act. The surplus land as and when it is determined and is taken over will, in accordance with the provisions of the Act and Rules, be allotted to the landless poor, subjected to a reservation of fifty percent of the lands allotted to those belonging to Scheduled Castes and Scheduled Tribes and two thirds of the balance to the members of Backward Classes.
Besides the provision of about a crore of rupees for staff for land reforms, a provision of Rs. 8 crores has been made in the coming year's budget for awarding compensation.
Government are aware of the fact that if the developmental outlays are to be stepped up to the extent proposed in the next year's Plan, it is necessary to streamline the existing procedures and make greater delegation of powers to the field officers. The Government have therefore set up three Committees one under the Chairmanship of the Chief Secretary to review the provisions of P W D Code and the existing powers of the engineers at various levels, another under the Chairmanship of Second Secretary to Government to examine the various aspects of the toning up of the administration and the third under the Chairmanship of the Finance Secretary to make recommendations regarding delegation of financial powers and rationalisation of procedures. It is hoped that the recommendations of these would be available during the next few weeks, so that existing procedures could be rationalised and greater powers delegated to Heads of Departments and field officers.
With the nationalisation of Banks, Insurance Companies etc., the role of Institutional Finance in the process of development of the State has increased. In full appreciation of this, the State Government have been taking a number of measures to augment the flow of Institutional Finance to this State. In the current year, a meeting of the Southern Regional Consultative Committee on Banking has been hosted by this Government in which important decisions relating to the Bank expansion programme and co-ordinating the programmes of the State Government, the Co-operative System and the Commercial Banks etc., were taken. The Reserve Bank have recognised the need to improve spread of banking facilities and have drawn the attention of Banks to open offices in potential growth centres identified by our Planning Department in a survey done as part of an Integrated Area Development Approach.
The State Level Consultative Committee on Institutional Finance has met and its Sub-Committees on both agricultural an non-agricultural credit have also met frequently to review progress in securing of institutional assistance to the projects of the State Government and its undertakings. The Collectors are also closely watching this in the District Consultative Committees.
A Regional Rural Bank covering Nalgonda and Khammam districts is to be established to cater to the needs, particularly of small and marginal farmers. We have suggested the establishment of at least two more Regional Banks in the State each covering two districts.
Increase in Non-Plan Expenditure
Having given a brief account of the developmental activities proposed to be taken up during the next year, I may take this opportunity of giving you an idea about the increase in non-Plan expenditure in certain sectors. Government are aware of the need to save maximum resources for developmental investments under the Plan, but consistent with this certain obligations have necessarily to be met.
Welfare of Government Employees
Hon'ble Members are aware that the welfare of our employees has always received due consideration from us. In addition to implementing the recommendations of the Pay Revision Commissioner, enhanced Dearness Allowance has also been announced from 1-1-1976. These have been made applicable not only to the employees of the Government but also to those working in the Local Bodies. The Village Officers and Village Servants have also been given additional Dearness Allowance of Rs. 5 per month. In addition, the City Compensatory Allowance has been revised to bring it on par with the Government of India rates for all catagories of employees. The House Rent Allowance has been enhanced to 15% of the basic pay for the employees drawing up to Rs. 1,000 per month, in the twin cities, Visakhapatnam, Warangal, Vijayawada and Guntur. The rates of compensatory allowance admissible in Taluk and sub-taluk headquarters where House Rent Allowance was not sanctioned have also been revised. A number of provisions relating to leave etc., have been liberalised. The net effect of these various measures on the State exchequer will be about Rs. 50 crores per year.
The problem of inadequacy of housing accomodation available for Government employees has been brought to our notice often. We have received representations also from the employees suggesting that a scheme may be evolved to help Government employees building or owning a house. I wish to see that a scheme is devised with the objective that all those employees who wish to own a house and are prepared to set apart their own savings for that purpose are enabled to build a house by the time of their retirement. The Cumulative-cum-Housing Deposit Scheme of the Housing Board is an effort in that direction. The Housing Board has also decided to increase the allocation of houses for Government employees. This is however a problem which cannot be solved unless we are able to draw upon sources of institutional finances. We are examining how such schemes can be promoted and helped.
The plight of pensioners who do not receive their pension in time has been engaging my constant attention for some time past. I convened meetings of the officers including audit officers to go to the root of the matter. In the light of those discussions, wherever possible orders have been issued simplifying and even liberalising the rules and procedures. We have allowed the benefit of all service to count for pension even if the employee has not been confirmed. The procedure relating to verification of service of the employee as also the grant of anticipatory pension has been considerable simplified.
We have emphasised that pending pension cases must be cleared expeditiously taking very special steps and a system of liaison with the office of the Accountant General has also been established to facilitate this process. I have impressed on the officers the need to ensure that every retired Government servant receives his pension immediately after retirement. I Plan to convene such meetings in future also, so that there should be no relaxation of the drive we have launched and I assure Hon'ble Members that this matter will continue to receive my constant attention.
The failure to review maintenance grants from time to time has in the past resulted in a neglect of maintenance. We have, therefore, in the current year undertaken such a review and have increased the provisions wherever it was felt that these were justified as a result of increase in costs. Thus, the provision for dietary charges for patients in hospitals and for purchase of medicines has been increased by Rs. 1.50 crores. Similarly, the allotment for maintenance of roads has been increased by Rs. 2.50 crores in the next year's Budget. An additional provision of Rs. 1.50 crores has been made to meet the commitments arising out of payment of Dearness Allowance to the employees of the Universities. A Committee consisting of Education Secretary and Finance Secretary has also been constituted to examine the question of revising the Block Grants to the Universities.
These are certain essential Departments whose efficiency has suffered because their requirements could not be met as part of the Plan in view of their being classified as non-developmental. The requirements of such Departments have also been examined and provision has been made for them under Non-Plan. Thus, the need for replacing machinery and vehicles in the Fire Stations has been examined and an additional amount of Rs. 45 lakhs has been provided in the current year. An amount of Rs. 37 lakhs has been provided in the next year's budget for the same purpose. Similarly, for strengthening and modernising the Police force Rs. 80 lakhs has been provided in the next year's Budget besides Rs. 25 lakhs for replacement of vehicles.
I now turn to the financial transactions contained in the Budget.
The Accounts for 1974-75 show a deficit of Rs. 22.59 crores which is mainly attributable to transactions in the Public Account.
Revised Estimates 1975-76
According to the Revised Estimation, the current year's Revenue surplus is estimated at Rs. 57.56 crores against Rs. 13.49 crores estimated earlier. This substantial increase in Revenue Account is due to continued buoyancy of our tax revenues and increased grants-in-aid and contributions from Government of India. Capital Expenditure is now estimated at Rs. 114.96 crores as against Rs. 86.56 crores earlier budgeted. This is mainly because of the large increase in our Plan. The loan disbursements under Plan have also registered a sharp increase. This is mainly attributable to two factors. We have stepped up disbursements of loans to cultivators both in Kharif and Rabi due to favourable climatic condition and we have increased the outlay for the Power Sector. The year is expected to close with a cash balance of Rs. 50 lakhs.
Budget Estimates 1976-77
I had already referred to the revitalisation of the economy and the continued buoyancy of our revenues in the last two years. I expect the economic situation to be encouraging next year also. The Revenue Receipts for next year are estimated at Rs. 656.15 crores compared to Rs. 575.36 crores in the Revised Estimates for 1975-76. The increase is mainly due to increase in our own revenues and increase in State's share of Central taxes. Hon'ble Members are aware that the Sixth Finance Commission recommended sharing of auxiliary Excise duties also from 1976-77 onwards between the Centre and the States. This partly accounts for the increase in the receipts. Next year we have also assumed 10% increase in the Centre's contribution to our Plan which was till now fixed at Rs. 48.75 crores. The State Electricity Board is also expected to pay an interest of Rs. 26 crores to the State Government in the coming year. The Revenue Expenditure is estimated to increase from Rs. 517.80 crores in 1975-76 to Rs. 616.41 crores next year. The increase in Revenue Expenditure is mainly attributable to the reliefs given to Government servants and employees of the local bodies in addition to the increased allocations made for certain Departments under non-Plan which I have already referred to in detail earlier. The anticipated Revenue surplus for next year is estimated at Rs. 39.74 crores. The expenditure on Capital account next year is put at Rs. 129.17 crores compared to Rs. 114.96 crores this year. The increase is due to larger outlays in important sectors like Irrigation, Power and Transport.
The net effect of all these transactions is an overall deficit of Rs. 42.69 crores. I hope to cover this deficit by better collection of revenues, specially the arrears and by larger Central assistance.
I trust the Hon'ble Members will appreciate from this survey I have given of our developmental programmes and non-developmental commitments that we have been able on the one hand to sharply step up the outlays on the developmental programmes in order to keep up the tempo of these programmes, while on the other we are also meeting, to the extent necessary, our commitments outstanding the Plan-whether these be for the welfare of the employees, the proper maintenance of assets and services or the expansion necessary of certain essential, though non-developmental services. We are able to do this because we have both augmented our resources and managed them prudently. It now remains for us to ensure that the resources so made available are utilized efficiently and economically and in a manner that would help achieve our twin objectives of economic growth and social justice. In this task I am sure we will have the support of all the Hon'ble Members.
Sir, with these words, I commend the Budget to the House for its approval.
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