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Previous Budget Speeches



1990- 91


ON 16 TH MARCH, 1990.



I rise to present the Budget for the year 1990-91.

The Hon'ble Members will recall that in the Governor's address , the Government had indicated that it will reorient the development strategy and re-order the economic priorities more judiciously with a view to reactivate the economy and achieve higher rates of growth. The Budget that is being presented today attempts to honor this solemn commitment.

I am sure that Hon'ble Members will appreciate that this Budget is significant for more than one reason. This is the first Budget of the present Government which received a massive mandate in the elections held in the month of November, 1989. Moreover, this Budget relates to the first year of the Eighth Plan. Yet another significant aspect of this Budget is that it attempts to develop the economy of the State keeping the long term interests of the State in view.

I must confess, in this context, that framing of the Budget for 1990-91 has by no means been an easy task. Even in the best of times, Budget formulation is an extremely difficult and delicate balancing task. We have found the task even more difficult because of the extremely difficult and complex financial situation we have inherited.

The few months we have been in office were devoted to studying and analyzing the financial maladies of the State and resolving immediate problems and crises. Time has not been sufficient for initiating all the corrective measures needed, on a long term basis, to restore the health of the finances of the State. Added to this, the Budget for 1990-91, had to be formulated in an atmosphere of uncertainty as I will be explaining a little later.

Inspite of all these hurdles the budget for 1990-91, has been prepared with all the needed care and caution with the firm intention of translating the budget proposals into action during the year 1990-91. We have inherited an unenviable legacy which imposes some constraints on the formulation of the budget in the very first year of office of the new Government. We are anxious that our promises and announcements should be backed by financial support. Towards this end, the budget exercise has been undertaken.

Review of Economic Trends

The overall seasonal conditions during the year 1989-90 have been generally good though the heavy downpour received during July and August and the deficit in rainfall during north-east monsoon period have had an adverse impact. According to preliminary estimates, food grains production during kharif 1989-90, is expected to be of the order of 83 lakh tonnes as against 87 lakh tonnes in kharif 1988-89. Because of excessive rains in some of the delta districts during south-west monsoon period and insufficient rain fall during north-east monsoon period, the overall food grains production during 1989-90, may not reach the level of 129 lakh tonnes attained in 1988-89.

During the first 9 months of 1989-90, there was a decline in general index of industrial production by 5.1% over the corresponding period of the previous year. This decline is attributable mainly to power shortage.

The net State Domestic Product increased during 1989-90, both at current and constant prices over the previous year. At 1980-81 prices, the Net Domestic Product amounted to Rs.10,431 crores in 1988-89 registering an increase of 12.6% over the previous year. At current prices, the Net State Domestic Product amounted to Rs.19,793 crores reflecting an increase of 19.3% over 1987-88. The structure of Net State Domestic Product reveals that agriculture continues to dominate the composition of State Domestic Product.

At current prices the per capita State income increased from Rs.2,734/- in 1987-88 to Rs.3,211/- in 1988-89, registering an increase of 17.4%. At constant prices, the per capita State income increased from Rs.1530/- in 1987-88 to Rs.1692/- in 1988-89, registering an increase of 10.6%.

As regards prices, the wholesale price index for agricultural commodities in the State increased from 360.7 in March, 88 to 371.1 in March,89 and 385.5 in December'89 after fluctuating in between. The Consumer Price Index for urban non-manual employees which was 731 in March, 88 rose to l781 by March, 89 and 841 by November'89 in Andhra Pradesh. Overall, the retail and wholesale prices in March,89 over March'88 indicated by appropriate index numbers have risen in Andhra Pradesh broadly in conformity with All-India.

Plan Outlay

Revised Plan For 1989-90

Hon'ble Members are aware that against an outlay of Rs.1300 crores, approved by the Planning Commission for 1989-90, the outlay provided for in the Budget was Rs.1400 crores. The Budget also envisaged a deficit of Rs.184 crores as a result of transactions of 1989-90. While no effort was made to bridge this huge gap between resources and outlay, a number of commitments were entered into during the course of the year on Non-plan account making the implementation of the plan ;outlay all the more difficult. An exercise undertaken by the State Government and the Planning Commission in the month of December, 1989 revealed that adequate resources were not available for implementing even the approved plan outlay of Rs.1300 crores. In the context of severe resource constraint, it became inevitable prune down the Plan considerably. This was no happy task; it was however, forced on us by circumstances beyond our control. Keeping in view the need to maintain certain minimum outlay in some sectors, the Plan outlay was reduced to Rs.1251 crores for the current year. In doing the exercise care was taken to see that there was no reduction in the outlay for power and the reductions in irrigation and social services sectors were kept at reasonable levels.

That the outlays had to be reduced to bridge the gap in resources did cause us concern. We are, therefore, monitoring the financial position very closely and to the extent we are able to increase our resources and reduce our non-plan expenditure we shall endeavour to step up our Plan performance during the current year beyond the level of Rs.1251 crores.

Annual Plan1990-91

Hon'ble Members are aware that we are on the threshold of the Eighth Five Year Plan. Next year happens to be the first year of the Eighth Plan. Normally, next year's Plan would have been formulated in conformity with the general approach adopted for the Eighth Plan. On the contrary, the Annual Plan: 1990-91, had to be formulated in an atmosphere of uncertainty. I would like to briefly outline some of the constraints under which the Annual Plan: 1990-91 has been formulated.

The Eighth Five Year Plan, which should form the basis for the Annual Plan: 1990-91, is still to be finalized. Even the Approach Paper has not been released by the Planning Commission so far. In the absence of the framework for the Eighth Five Year Plan, the National goals and objectives are still not clear. Therefore, allocations have been made for different sectors keeping in view the development strategy we would like to adopt and the commitments on hand.

The resources flow from the Centre to the State for funding the Plan has not yet been fully spelt out by the Planning Commission. As the Hon'ble Members are aware, the Plan outlays are largely financed from three sources, namely, Surplus on Balance from Current Revenues, Central assistance and Market Borrowings and Negotiated loans. While the quantum of Surplus on Balance from Current Revenues will depend upon the recommendations of the Ninth Finance Commission, the level of Central assistance, Market Borrowings and negotiated loans will depend upon the recommendations of the Planning Commission and the final decision of the National Development Council. For the purpose of formulation of Budget we have proceeded on certain assumptions regarding receipts under these heads. Necessary adjustments in the allocation of resources to various schemes will be made in due course, once these uncertainties are cleared.

The Plan for 1990-91 has now been placed at Rs.1445crores. This has two distinct components - the normal Plan of Rs.1422 crores and a special Plan of Rs.23 crores for the accelerated development of the tribal areas. I am happy to inform this August House that the special Plan for development of tribal areas at an estimated cost of Rs.65 crores has been approved by the Planning Commission. The Commission has also agreed to provide special Central assistance of Rs.65 crores to enable the State to implement the programme. The outlay of Rs.23 crores in 1990-91 represents the requirement in the first year.

In making a comparison of the outlay for 1990-91 with the outlay for 1989-90, Hon'ble Members may bear in mind that the revenue component of the current years' Plan outlay which is meant for maintaining the assets created and services provided in the Seventh Plan stands transferred to Non-Plan next year. This committed liability is of the order of Rs.172 crores on the State Plan account alone. If 1990-91 had not been the first year of a new Five Year Plan, the amount of Rs.172 crores would have continued to be reflected in the Plan itself. In view of this, the order of plan effort of the State Government for the year 1990-91 can be notionally viewed as Rs.1617 crores.


Power is the most important infrastructure for the economic development of the State. But, unfortunately, in recent years this sector was badly neglected and the Hon'ble Members are only too well aware of the consequences of such a neglect. While the demand for power is increasing rapidly, no significant addition was made to the generation capacity especially in the State sector.

The present installed capacity in the State Sector is 3825 MW comprising 1403 MW of thermal capacity and 2422 MW of hydel capacity. Together with the share of 577 MW (440MW Ramagundam STPS + 40MW Madras Atomic Power Project + 97 MW Neyveli) in the Central Sector, the total capacity available for us at present is 4402 MW.

Our hydel projects which form the bulk of our generation are dependent on monsoon. While we could meet the maximum installed load of 3300 MW during the monsoon season when hydro stations were giving upto 2000MW , during non-monsoon season, the position becomes precarious.

An outlay of Rs.22.00 crores was made in 1989-90, for the Plan works of Andhra Pradesh State Electricity Board. In addition to this Plan Outlay, a loan of Rs.55.00 crores is anticipated from Power Finance Corporation (PFC) - Rs.30.00 crores for Vijayawada Thermal Power Station Stage-II and Rs.25.00 crores for Transmission Schemes during 1989-90. Thus the total capital expenditure for Plan 1989-90 will be Rs.275.00 crores.

Hon'ble Members are aware that the third unit of 210MW at Vijayawada Thermal Power Station was commissioned in October'89 and that efforts are being made to commission the Fourth unit also by April/May 1990, to tide over the present power crisis in the State. However, BHEL who have to supply the generator have delayed the supply and it is expected to be received only in April, 1990.

 Programme For 1990-91

This Government has a firm policy of remedying the power shortage in the State at the earliest opportunity. In order to do this, the power projects which are to be commissioned in the Eighth Plan as well as power projects to be initiated in the Eighth Plan and Commission in the Ninth Plan would have to be given top priority. Keeping this in view, the outlay for power for the year: 1990-91, has been increased to Rs.436 crores. This reflects an increase of Rs.161 crores over the outlays of total plan expenditure of Rs.275 crores for the year 1989-90.

During the year 1990-91, we will be adding 386 MW capacity. This will come from Vijayawada Thermal Power Station, 4t h unit (210MW), Gas based Thermal Power Station at Vijjeswaram , 2 units (66MW), Nagarjunsagar Right Canal Hydro-Electric Station, 3 rd Unit (30MW), Nagarjunasagar Left Canal Hydro Electric Station (60MW) and Penna Ahobilam Hydro-Electric Station 1 st and 2 nd units (20MW).

In addition the State will get about 172 MW power from the 1 st unit of 2 nd mine cut of Neyveli Thermal Power Station Stage-II, and 3 rd Unit of 500 MW at Ramagundam Super Thermal Power Station.

Works at Rayalaseema Thermal Power Station at Muddanur (2x210Mw) have been started. Asian Development Bank is extending a loan assistance of US$ 230 millions. In addition, co-financing of US$ 50 millions is also arranged for the first two years. An outlay of Rs.75.00 crores is provided in 1990-91. International bids have been floated and received for the supply and installation of main equipment. The units are expected to be commissioned in 1993-94.

Two units of 210 MW are proposed to be added at Vijayawada Thermal Power Station under Stage-III to increase the base load capability of the system. The estimated cost of the project is Rs.647.8 crores. The coal linkage is given from Ib-valley in Orissa. Techno-economic approval is accorded by the Central Electricity Authority. In view of the urgency to bridge the demand and supply gap in our power system as early as possible, we are asking the Electricity Board to take up implementation of the project by raising funds through suppliers credit from M/s. Bharat Heavy Electricals Limited, and from other Indian financial institutions. We can implement the project in 42 months from the time of placing orders for equipment.

A project report was sent to Central Electricity Authority for installation of the two units of 500Mw each at Visakhapatnam under Stage-I, at an estimated cost of Rs.1477.54 crores. Coal linkage for this station from Talcher/Ib Valley coal fields in Orissa is under active consideration of Government of India. It is proposed to commission the first unit in 1994-95 and second unit in 1995-96.

Project reports for Gas based combined cycle thermal power station at Vijjeswaram under Stage-II (3x100 Mw) in West Godavari district and Gas based combined cycle thermal power station at Kakinada.

(3x100MW) have been sent to Central Electricity Authority

for clearance. Allocation of the required Natural Gas from the Godavari basin by the Government of India is awaited.

To increase the capacity of Srisailam Hydro station, six units of 150MW each pumped storage units are proposed to be installed on the left Bank of Srisailam with the assistance of Overseas Economic Co-operation Fund, Japan. Two units of 150MW are expected to be commissioned in 1994-95 followed by two units in 1995-96 and1996-97. An outlay of Rs.46.25 crores is made in 1990-91 for this project.

We have simultaneously taken up preparation of project reports and filing of applications before the Government of India for approval in the case of several projects. Krishnapatnam thermal station of 2x500MW, Ramagundam extension of 2x210MW , Kothagudem extension of 2x210MW and Muddanoor extension of 2x210MW are under various stages of consideration.

Hon'ble Members are aware that as per the Power Development Plan for Eighth Plan period, under consideration in Government of India, Andhra Pradesh, would have the highest shortage, in terms of demand as well as in terms of energy, in the country at the end of the Eighth Plan. Therefore, in addition to Vijayawada Thermal Power Station Stage-III and Vizag Thermal Power Project and Gas based project, which we have already proposed, Government would make all efforts to set up as many additional, though small, gas based or oil based stations. A project report has already been prepared for setting up 100 MW fuel oil based plant at Gajulamandyam near Renigunta. We will propose a few more such projects at appropriate locations. We would request the Government of India to allot adequate quantities of oil atleast for these projects. The cost of power from these would be higher than the coal based projects. But such projects could immediately help to tide over the shortage in 1991-92 and 1992-93, and in later years they may function as peaking stations and supplemental stations giving assistance during non-monsoon period. In the efforts to set up these projects, we would be seeking the full co-operation of the private sector also. Various modalities for involving private sector such as joint venture as in the case of Vijjeswaram Gas based project or models which have been conceived in other States of India, would be examined in consultation with private sector and appropriate decisions taken soon. Hon'ble Members would appreciate that having inherited a somewhat difficult situation this Government is doing its level best to bring power supply to match with the demand in the least possible time.

The Government have taken a serious note of frequent transformer failures on rural feeders and consequent difficulties to the farmers. With a view to remedy this once and for all, it is proposed to add more distribution transformers and reduce the diversity factor to one. This scheme will involve an outlay of about Rs.180 crores. The Electricity Board will implement the scheme in phases. About Rs.20 crores is the likely expenditure on the scheme during 1990-91.


Our Government is committed to accord a very high priority for irrigation which is crucial for increasing agricultural production. In developing this vital sector, Government are anxious that the back-ward areas of the State should be enabled to catch up with relatively more developed areas. While the Government is consciously ear-marking substantial outlays for Major Irrigation, adequate provision is also being made for Minor Irrigation for the uplift of small and marginal farmers.

During the Seventh Plan period, the expenditure on irrigation is likely to be of the order of Rs.1413 crores. This includes an amount of Rs.290 crores, which is the likely expenditure on irrigation for the year: 1989-90. In the plan budget for 1990-91, an outlay of Rs.350 crores has been provided for the Irrigation sector.

It is proposed to create a total irrigation potential of 80,000 hectares during 1990-91; 40,000 hectares of this will be under the major and Medium sectors and 40,000 hectares under Minor irrigation.

The Government are anxious to provide irrigation facilities to the parched districts of Rayalaseema and Nellore and also to supply drinking water to Madras city as early as possible. It is with this objective the Government have allocated a sum of Rs.50.00crores, and have accelerated the pace of various components of the Telugu Ganga Project works. The progress of Telugu Ganga Project is being monitored at the highest level.

Priority is also being given to the Sriramsagar Project Stage-I, and the Srisailam Right Branch Canal. An amount of Rs.44 crores each is provided for these two irrigation projects as World Bank assistance has been secured for them. The work is being executed expeditiously in both these projects. An amount of Rs.24 crores is the allocation for the Jurala Project, which is to provide irrigation facilities to Mahabubnagar district and the benefits will start flowing from June-1992. An amount of Rs.10 crores has been earmarked for Yeluru Reservoir Project and it is hoped that water would be let out from the Yelure canal to the Visakah Steel Plant shortly.

In order to provide durable relief to tail end ayacut under Nagarjunasagar Project in Guntur , Prakasam and Nalgonda districts, a large number of supplementation schemes and lift irrigation programmes have been taken up. The allocation of Rs.22 crores under Nagarjunasagar project includes the outlay on supplementation schemes and lift irrigation schemes.

The 100 year old Sunkesula anicut, from where the Kurnool-Cuddapah canal takes off is proposed to be replaced by a new barrage. Hence, the allocation for Sunkesula barrage during 1990-91 is stepped up to Rs. 4 crores as against the expenditure of Rs.25 lakhs during the year 1989-90. The works on the Tungabhadra Project High Level Canal Stage-II are in advanced stage of execution. An amount of Rs.10 crores is provided for this project during the year 1990-91. An amount of Rs.6 crores is the allocation for the modernization of various existing canal systems viz., Penna Delta system TBP.HLC., Prakasam Scheme, Sriramsagar Canals, Mylavaram canals, Kurnool- Cuddapah canal etc.

An amount of Rs.24 crores is provided in the Budget for 1990-91 for taking up the works under Medium Irrigation projects. There are about 36 medium Irrigation projects which are presently under execution and 15 of these projects are proposed to be completed by March 1990. It is the intention of the Government that the remaining projects, which are at different stages, should be completed soon so that the benefits of these projects reach the farmers early.

Government attach considerable importance to the Minor Irrigation sector as the works under this sector are likely to yield quick results benefiting a large number of poor farmers. An amount of Rs.55 crores is allocated for Minor Irrigation for 1990-91 registering an increase of Rs.14.50 crores, over the anticipated expenditure of 1989-90. Of this, an amount of Rs.15 crores is allotted to the Irrigation Development Corporation for taking up various works. In the minor irrigation sector, provision has been made for taking up a number of programmes, benefiting the Scheduled Castes under the Special Component Plan and the Tribals under the Tribal Sub-Plan. The scope for stepping up the allocation to the minor irrigation sector further will be reviewed by the Government on a continuous basis.

Agriculture and Allied Services

Agriculture sector in which 80% of the population is engaged accounts for 47% of the State's income. Therefore, it is no exaggeration to say that agriculture is the main stay of the State's economy. Fortunately, this is the second year in succession for the State to have good seasonal conditions after four years of continuous unfavorable seasonal conditions. However as a result of the heavy rain fall in July/August in some of the delta districts and shortfall of 61% in rainfall during North East Monsoon period, the overall annual production of food grains is expected to be slightly less than what was achieved during last year, as I had already mentioned.

Since rice is the principal food grains crop in the State, special thrust is given for increasing the productivity and production by launching special foodgrains production programme. Special attention is also given to rainfed farming as 68% of the cultivated area is rainfed farming. Dry land Development programmes are taken up on a Watershed basis with sizable allocations. Special programmes are also taken up for increasing the production of oilseeds and pulses in a big way with encouraging results.

It is gratifying to note that there has been a strong recovery in Cotton production in the Kharif after severe decline during the last two years. The production during the current kharif is expected to be about 10 lakh bales as against 5.6 lakh bales during the last kharif period.

Government attach special importance to the development of Horticulture. A plan provision of Rs.100.00 lakhs is made for horticulture development during the year 1990-91. The main thrust for development of horticulture in the State will come through programmes like production of plant material, encouragement of dry land horticulture, Coconut development, Cashew development and Oil Palm cultivation.

Livestock plays a key role in the rural economy. For the year 1990-91, a sum of Rs.225 lakhs has been provided under Plan. Opening of new Rural Livestock Units, opening of Veterinary Poly clinics and strengthening of Veterinary Biological Research Institute are some of the schemes included in the Plan for 1990-91.

The Fisheries sector has a considerable potential to provide the protein food to the general population. It is necessary to develop this sector with adequate emphasis on the economic development as well as welfare of fishermen. An outlay of Rs.400 lakhs has been proposed for this sector in the plan for 1990-91.

Rural Development

In the Rural Development sector schemes intended to assist small and marginal farmers under Integrated Rural Development Programme and other programmes like Drought Prone Area Programme and Programme for Assistance to Small and Marginal Farmers are being continued.

The National Rural Employment Programme and Rural Labour Employment Guarantee Programme have been combined into a new scheme known as Jawahar Rojgar Yojana with effect from 1.4.1989. During the current year a total sum of Rs.38.64 crores is provided in the State budget towards 20% State share and Government of India have released an amount of Rs.154.46 crores. Directly to the Panchayat Raj bodies. In anticipation of the continuance of the scheme during 1990-91, the State's share is provided in the Budget.

Under Minimum Needs Roads programme an amount of Rs.5.00 crores is provided in the State budget for the year 1989-90. With this 85 villages will be connected with metal roads by the end of March 1990. For the year 1990-91 also a sum of Rs.5.00 crores has been provided. It is proposed to cover 125 villages with pucca roads by metalling nearly 225 KMs length.

Rural Water Supply

Rural Water Supply continues to be an important programme of the Government. Totally 22,860 problem villages have been identified in lists I, II & III. Upto the end of 31-3-1989, 15,169 villages have been covered and the revised target for 1989-90 is to cover 2,400 villages. Upto the end of January, 1990, 1481 villages are covered. For the year 1990-91, an amount of Rs.29.50 crores is provided in the State budget for Rural Water Supply Sector and a provision of Rs.20.00 crores is made anticipating the same from Government of India under Accelerated Rural Water Supply Programme. With the amount of Rs.49.50 crores, it is proposed to complete 800 spill-over schemes and also cover 1,000 problem villages. Under Netherlands Assisted Scheme four Projects are taken up in the districts of Medak, Mahabubnagar, Kurnool and Prakasam. It is aimed at completing two projects in respect of Prakasam and Medak districts in 1990-91 to cover nearly 130 villages. The rest of the two schemes will be completed during 1991-92.

Under Technology Mission, Government of India sanctioned 31 defluoridation plants for the year 1989-90. It is proposed to completed 18 during 1989-90 and the remaining 13 during 1990-91. Similarly 14 desalination plants were also taken up under this programme and 9 are expected to be completed before end of March and the remaining during 1990-91.


Industrialization holds the key to diversification of economic base of the State and increase in employment opportunities. Quickening the place of industrialization in the State would therefore be the constant endeavor of the Government.

Government consider that incentives are important to attract industry to the State and particularly to develop industry in the backward areas. Instructions have been issued for implementation of liberalized package of incentives which is expected to spawn a new wave of industrialization in the State. In furtherance of this commitment, during December, 1989, in an unprecedented gesture, the Government released Rs.22 crores as advance under Central Subsidy Scheme pending reimbursement from the Government of India in order to provide timely help to hundreds of industrial units at various stages of implementation in all parts of the State.

Government views with concern the incidence of sickness in the industrial sector. Assets build up at huge capital costs remain unproductive and workers rendered unemployed and unprotected besides the very process of Industrialization receiving set back. Therefore, a package of concessions to be extended by the State Government and other State Government agencies for rehabilitation of industries which have been declared sick by the Board for Industrial and Financial Reconstruction has since been evolved. Where the industries are to be revived by transfer of management to the workers' cooperative societies, maximum level concessions are extended, besides providing soft loans to workers to enable them to participate in the share capital of the sick industry. While the efficacy of these measures is being watched, Government is always open to any constructive suggestion that can pave the way to speedy revival of sick units.

Sugar Industry

Sugar cane is one of the most important commercial crops in Andhra Pradesh contributing to the agricultural prosperity of the State. The State Government have been encouraging cane growers by announcing State Advisory Price. For the 1989-90 crushing season, a remunerative price of Rs.275/- per M.T. linked to a recovery of 8.5% has been declared as State advised Cane Price which is Rs.55/- more than the Statutory Minimum Cane Price fixed by Government of India. The Sugar Factories have also been asked to pay an incentive cane price of Rs.10/- per M.T. to be adjusted against the purchase tax of Rs.16 per M.T. The Sugar Factories under Co-operative and Public Sector were also advised to pay an additional amount of Rs.15/- per M.T. as a Special Incentive to those of the cane growers who supply 85% of the agreement cane or cane actually produced by them whichever is less. Provision has been made in the Budget Estimates 1990-91 for implementing the incentive schemes.


With the basic objectives of providing sustained employment to handloom weavers and also to cater to the clothing requirements of weaker sections, it is proposed to continue the scheme of supplying Janatha Sarees and Dhoties to green card holders in 1990-91.

About 15,000 weavers have benefited under Thrift Fund Scheme and about 8,000 weaver members were assisted under Workshed-cum-Housing Scheme. Government have taken a decision to extend the Thrift Fund Scheme to the handloom weavers registered with and working for the production centres of A.P.State Textile Development Corporation also besides increasing the insurance cover from Rs.500/- to Rs.5,000/- per weaver.

To ensure captive sources of Hank Yarn production required by handloom weavers co-operatives, two more co-op. Spinning mills in grower sector at Chilakaluripet and Siricilla are under implementation with World Bank assistance. Government is also taking effecting steps to tone up functioning of the existing Cooperative Spinning Mills.


Andhra Pradesh occupies second position in the development of Sericulture in the country. The area under Mulbery has gone upto 1.66 lakh crores. As against the targeted area of 19,681 acres for 1989-90, the achievement was 28,525 acres under Mulberry including the target of 5,000 acres under National Sericulture project. The production of reeling cocoons upto January, 1990 is 22,900 tonnes and the entire target of 26,000 tonnes will be achieved during 1989-90.

For 1990-91, the Plan outlay approved for Sericulture is Rs.693.00 lakhs. The provision for ongoing schemes is Rs.126.00 lakhs which is mainly intended for maintenance of infrastructure, providing marketing facilities and financial assistance to Co-operative societies. Two new schemes proposed are: Bonus rate incentive to Seed rearers to strengthen the seed production programme and Chawkie cum disinfection units to improve the yield of cocoons by Scheduled Caste/Scheduled Tribe Sericulturists at a total cost of Rs.81.30 lakhs.

Major allocation of Plan outlay is earmarked for supporting the Sericulture activity under National Sericulture Project with World Bank assistance which is being implemented from 1989-90. The objective is to increase the silkyarn production to a level of 2,500 tonnes and bring an additional area of 25,000 acres under Mulberry in five years.

Self-Employment Schemes

Hon'ble Members will recall that the Governor's address an indicating regarding the Government's approach to generation of substantial employment opportunities was given. Hon'ble Members will also recall that it was also mentioned in the Governor's address that self-employment programmes would be revitalized and their range expanded to ensure steady generation of income. The Government, keeping in view the commitment given have decided to give highest priority to the problem of educated unemployed. Presently about 28.00 lakhs of unemployed youth are registered on the roles of employment exchanges in the State. The rate of absorption of organized sector, infrastructure, public administration and unorganized services do not exceed one lakh people per year. It is therefore, necessary to create work opportunities by evolving new techniques and tools. The only possibility is to venture in a big way on self-employment. While employment is a product of total activity of economy, the Government can act as a catalyst to channelise the forces in the right direction. For this purpose, Government appointed a Core Group to recommend the methodology of taking up self-employment programme on a bigger and wider scale and this group has already recommended appropriate measures to promote purposeful skill development and framework of subsidizing the capital assets required for generating income on self-sustaining basis.

Government have decided that for the financial year 1990-91, a budgetary allocation of Rs.25.00 crores will be made available for this purpose. Of this amount, Rs.20 crores will be utilized as margin money linkage with institutional finance; Rs. 5.00 crores will be spent on development on infrastructure and training facilities. The Financing institutions are also likely to participate in the development of training facilities. It is expected that about one lakh beneficiaries can be covered in course of the financial year 1990-91.

Roads and transport

Hon'ble Members will be happy to note that as against the Plan outlay of Rs.20.50 crores for State roads during the current year, an allocation of Rs.30.00 crores has been made under Plan in the budget for 1990-91.

The Roads and Buildings Department is maintaining 34,252 kms of State highways and major district roads. In addition, recently 6450 Kms of Zilla Parishad roads have been transferred to the Roads and Buildings Department.

The work of restoration and improvements of Hyderabad-Karimnagar-Ramagundam road at an estimated cost of Rs.70.00 crores with the loan assistance of Asian Development Bank will be grounded during 1990-91.

The major work of construction of bridge across Vasista branch of Godavari at Chinchinada has been sanctioned at a cost of Rs.18.00 crores, the expenditure on which will be shared by the State Government and Oil and Natural Gas Commission

The Kakinada-Rajanagaram road (54 Kms) is proposed to be improved with the assistance of Asian Development Bank and feasibility report is under process. It is likely that this will be grounded in 1990-91 after approval by the Asian Development Bank.

Formation of intermediate ring road at an estimated cost of Rs.2.25 crores has been sanctioned with a view to solve the traffic problem of Hyderabad city. Besides formation of link roads, the inner ring road is being suitably upgraded at an estimated cost of Rs.4.7 crores.

I have no doubt that the Hon'ble Members will appreciate that our commitments in Irrigation, Power and Social Services sectors leave very little resources for stepping up outlays for improving the road communication network. There is need as well as scope for mopping up extra budgetary resources for utilisation in this sector. Our Chief Minister has, therefore, addressed the Union Minister for Finance to permit flotation of Road Bonds on the lines of Bonds issued by the Central Public Sector Undertakings. The Scheme envisages improvement and strengthening of Roads in areas where people come forward to subscribe to these Bonds. The State Government on its part will provide contribution equal to the subscription raised for road improvement in those areas. This, I am confident, will act as incentive for the people to contribute liberally to the proposed Bonds.

In the Transport sector, the Andhra Pradesh State Road Transport Corporation continues to function efficiently. The vehicle utilisation has increased from 291 Kms to 295 Kms and fleet utilisation from 95.50% to 96.29%. The bold decision of the Government to nationalize the city bus routes in Vijayawada has been widely welcomed.


Government have sanctioned the development of Kakinada Port as a Deep Water Port with berthing facilities for direct loading and unloading of ships. The upgradation and Modernisation of the port will reduce transportation costs for industrial products and general cargos passing through the Port and will further support and development of industry in the region.

The development of Kakinada Port involves construction of three deep water berths, extension of the breakwater with 3.3 km dredging of access channel, provision of ancillary facilities such as navigational aids, mobile cranes, roads and approach bridges. The total amount for which administrative sanction has been accorded is Rs.124.08 crores. The project will be executed with the Asian Development Bank loan assistance. In the budget for 1990-91, an outlay of Rs.5.00 crores has been provided for the project.

Social Welfare

Our Government is committed to accord a very high priority for the welfare of Scheduled Castes, Scheduled Tribes and Backward Classes. The Hon'ble Members will notice that the proposed outlay, Plan and Non-plan put together for the welfare of Scheduled Castes, Scheduled Tribes and Backward Classes during 1990-91 will be 296.91 crores as against an outlay of Rs.259.38 crores during the current year. In addition, as mentioned by me already, a sum of Rs.23 crores has been provided towards accelerated development of tribal areas in the budget for 1990-91. Schemes such as pre-matric scholarships, stipends, supply of text books and economic support schemes will be continued with greater vigor.

During 1990-91 an amount of Rs.17.85 crores under Non-plan and Rs.6.00 crores under Plan, totaling Rs.23.85 crores is proposed to be spent on the post matric scholarships for Scheduled Castes as against the total provision of Rs.15.34 crores during the current year. In this context, I would like to bring to the notice of this august House that the Government have initiated action to eliminate the delays and curb malpractice's in the sanction and disbursement of scholarships. The Government's objective is to ensure that the scholarships are disbursed on a monthly basis to the beneficiaries.

There are 2210 Government hostels run by the Social Welfare Department with a total strength of 2,26,390 boarders. In the Budget for 1990-91 an amount of Rs.51.84 crores is proposed for this scheme. There are 68 Social Welfare Residential Schools with a strength of 19,320 students. Several of these schools have been able to register 100% passes. A provision of Rs.13.79 crores has been made in the Budget for these schools.

Hon'ble Members are aware that the Residential Schools have contributed a great deal a great deal to the improvement in the quality of education imparted to the students belonging to the weaker sections. To continue this quality education upto Intermediate and to enable students to get into professional and better courses at the graduation level, it is proposed to establish 3 Social Welfare Residential Junior Colleges in the State at the rate of one in each region including one Social Welfare Residential Junior college for girls during the year 1990-91. It is proposed to provide a sum of Rs.81.00 lakhs for these 3 Social Welfare Residential Junior Colleges.

In order to improve the chances of Scheduled Caste students in getting employment in the technical field, Government have been maintaining 3 Residential Polytechnics and 3 Residential it is. During the year 1989-90, Government have sanctioned an Industrial Training Institute at Hatnoora in Medak District. A sum of Rs.2.00 crores has been provided in the Budget for infrastructure for the Residential Polytechnics and Industrial Training Institutes during 1990-91.

The A.P.Scheduled Castes Co-operative Finance Corporation continues to play an important role in the economic development of Scheduled Caste families who are poor and living below the poverty line. It is proposed to provide a sum of Rs.4.59 crores under Plan with a matching contribution from the Government of India during 1990-91, as an investment in the share capital to cover about 2,00,000 families.

Our Government is particularly anxious to lay special emphasis on the economic development as well as welfare of tribals. The strategy for development of tribals of Andhra Pradesh has to take into consideration geographical distribution, levels of living and human and natural resources endowment. The schemes meant for development of tribals can be broadly classified as educational schemes, economic development schemes, assistance to public sector enterprises and other schemes.

In the Budget for 1990-91 the new schemes proposed are : (a) opening of 5 new ashram schools, (b) opening of 30 new hostel units by way of bifurcation of the existing large sized hostels, (c) provision of 1000 new seats under best available schools, (d) creation of 256 teacher posts to correct teacher pupil ration in ashram schools, (e) raising of 500 acres of Horticulture in non-ITDA areas.

As regards Backward Classes the total provision during 1990-91 will be Rs.67.37 crores as against current year's level of Rs.55.75 crores. The on-going schemes like Backward Classes hostels, Ashram Schools for Fishermen, Ashram schools for Waddaras etc., will be continued during the next year also.

The A.P.Backward Classes Cooperative Finance Corporation which implements economic support schemes for the uplift of eligible Backward Classes has a programme for covering 40,000 families with a provision of Rs.400 lakhs of margin money as against the amount of Rs.314.5 lakhs provided during the current year.

Government have relaxed the ban on acquisition of new lands with a view to accelerate the programme of providing house sites to the weaker sections. A sum of Rs.11 crores has been provided for the scheme of land acquisition for house sites for Scheduled Castes, Scheduled Tribes, Backward Classes and other poorer sections during 1990-91.

The Government proposes to continue the Weaker Sections Housing Programmes with the objective of providing permanent shelter with better accommodation and improved basic amenities. In the Annual Plan 1990-91 an outlay of Rs.39.97 crores has been provided under Weaker Sections Housing Programme including the provision for implementation of "Housing for Urban Poor". This outlay is at the same level as in the Revised Estimate for the current year. It shall be our endeavour to step up this outlay during the course of the year. Under Non-plan Budget an amount of Rs.50.73 crores has been provided towards repayment of installments of loan and interest to HUDCO and other financing institutions on behalf of beneficiaries. Hon'ble Members will appreciate that unless effective steps are taken the benefit of Weaker Sections Housing Programme, it will be very difficult to sustain the tempo of this programme in the years to come.

Women and Child Welfare

As the Hon'ble Members are aware, the A.P. Women's Co-operative Finance Corporation has been implementing the scheme known as "Mahila Pragathi Pranganams" with a view to bring under one roof training as well as production activities for deserted, destitute and orphan women in a number of trades. Eight Pranganams have been commissioned during 1989-90 and ten more Pranganams are under construction and they are likely to be completed during 1990-91. It is proposed to construct Four more Pranganams during the year 1990-91.

The scheme for providing Maternity Assistance to agriculture and casual labourers will be continued in 1990-91 with a provision of Rs.79 lakhs under Non-plan and Rs.13 lakhs under Plan.


The State Government attaches great importance to education, being an important instrument for socio-economic transformation. Given the constitutional imperative of free and compulsory education, the Government assigns a high priority to universalisation of elementary education. The Government also desires to strengthen the linkage between education and the world of work, so that students are equipped with the modern skills needed for wage and self-employment.

The Hon'ble Members will notice that under the General Education sector, the total outlay, Plan and Non-plan put together during the current year is Rs. 995.33 crores. Since the expenditure during the current year includes about Rs. 100.00 crores towards arrear payments on account of revision of pay scales, the effective set-up for this sector is of the order of Rs. 145 crores.

It is a matter of regret that Andhra Pradesh continues to be one of the nine educationally backward states in the country. The level of literacy in the state has been consistently lower than the national average. By 1981, the State's literacy was only 29.94% as against 36.23% for the country as a whole . The state of affairs can no longer be brooked. The Government are determined to take time bound, concrete measures to raise the level of literacy. In the year 1990-91, concerted efforts would be made in three district, one in each region to surpass the National average literacy rate. The ultimate goal is universal literacy.

In this context I may mention that though the literacy rate is very low in our State, ours is one of the very few States in the country which had attained near universal provision primary schools. According to the 5 th All India Education Survey conducted by the National Council of Educational Research and Training, 99.7% of the habitations in the State have a primary school within a distance of 1 Km. In order to improve our literacy rate, the emphasis has now to shift from provision of new schools to universal enrollment, retention and to improvement of the learning environment in the schools.

The Primary Education Project, being funded by the Overseas Development Agency (UK) provides an opportunity to improve the quality of primary education in the State. The Project envisages construction of 3,383 class-rooms and 1,104 teacher's centres. In addition, it seeks to train all the primary schools teachers in the State in child centred teaching methods, which have been commended by the National Education Policy.

Another major innovation that is being attempted is to synthesize various programmes which were taken up after the National Education Policy, 1986, with the earlier experiment of Abhyudaya Pradhamika Patasalas. To begin with, this innovation would be tried out in five primary schools in each district in the year 1990-91. The Government are also committed to equalization of educational opportunities with focus on Women , Scheduled Castes, Scheduled Tribes, Backward Classes and other weaker sections. As part of integrated development of tribals, the Government wishes to strengthen the Residential School system in the tribal areas. Five new Residential Schools are proposed to be set up in the year 1990-91.

The other important interventions proposed in School Education are opening of pre-primary sections on a pilot basis, streamlining and strengthening of non-Formal Education Programme, operationalisation of District Institutes of Educational Training by organizing extensive in-service training of Elementary School teachers, phased appointment of additional SGBT teachers in Primary and Upper Primary Schools to improve the teacher-pupil ratio, incentives on a pilot basis for Scheduled Caste girls to improve enrollment and retention of Scheduled Caste girls in Primary Schools, qualitative improvement of State Council of Educational Research and Training programmes and effective monitoring of the programmes at the field level.

Government also propose to give additional teachers for 100 Urdu medium primary schools started during 1988-89.

The State Government attach high priority to push through the National Literacy Mission, by completing efforts of the Government run literacy projects by social motivation involving voluntary agencies and various sections of society like teachers, students and trade unions. The U.N. General Assembly had declared 1990 as the International Literacy Year. To commemorate this occasion, area-specific programmes for eradicating illiteracy are being planned. Post-literacy programmes through Jana Sikshana Nilayams would be further stepped up.

Medical and Health Care

Primary Health Center

The Government of Andhra Pradesh is committed to provide medical facilities for all by 2000 A.D. Accordingly, it has been decided to establish one Primary Health Centre for every 30,000 population in plain areas and 20,000 population in tribal and hilly areas and one Sub-Centre for every 5000 population in plain areas and for every 3000 population in tribal and hilly areas. At present, there are 1243 Primary health Centres. 190 Community Health Centres and 8327 Sub-Centres in State. In the Budget for 1990-91, provision is made for establishment of 60 new Community Health Centres into 30 bedded Primary Health Centres.

Government have initiated special steps to fill up the vacancies in the posts of doctors in the Primary Health Centres and taluk level Hospitals. A substantial number of vacancies have already been filled up and the Government are confident that all the remaining vacancies will be filled up by the June 1990.

School Health Programme

Andhra Pradesh has been implementing the School Health Programme throughout the State since 1985. The Overseas Development Administration of United Kingdom has agreed to provide assistance of about Rs.15 crores over a period of five years for the programme in the State. A special scheme to benefit the school children of Upper Primary Schools belonging to Scheduled Castes and Scheduled Tribes has been launched during 1989-90 which consists of providing nutritional supplements and treatment for minor ailments for school children. The School Health Programme will continue during 1990-91 also.

Family Welfare Programme

Family Welfare Programme covers services under family planning, maternity and child health, immunisation programme, oral rehydration therapy programme, training of para-medical personnel, mass education media activities, India Population Project and other services related to family welfare. The total outlay on Family Welfare Programme for the year 1990-91 will be of the order of about Rs.82.49 crores. During 1990-91 it is also proposed to establish India Population Project-VI in the State with World Bank assistance.

Urban Development

Environmental Improvement scheme is an important programme undertaken by the Municipalities. This scheme is intended mainly to provide basic amenities such as Roads, Drains, Water Supply and Street lights etc., to the slum dwellers who mostly belong to Scheduled Castes, Scheduled Tribes and other economically weaker sections of the Society, living below the poverty line. Since the inception of the scheme in 1974-75, an amount of Rs.423.40 lakhs was released to the Municipalities in the State for the benefit of 30,05,599 slum population in 2204 slums. During 1990-91, it is proposed to provide an amount of Rs.251 lakhs under this scheme for the benefit of about 83,666 slum population in 160 slum areas.

The Environmental Improvement Scheme is being implemented with the assistance of Overseas Development Agency (United Kingdom Government) in Municipal Corporation areas of Hyderabad and Visakhapatnam. Slum Improvement Project at a cost of about Rs.32.00 crores would be taken up with the assistance of Overseas Development Agency in the Municipal Corporation area of Vijayawada during the year 1990-91 to benefit 56,000 families in 136 slums.

I am happy to bring to the notice of the Hon'ble Members that the Government have initiated action to issue pattas to eligible persons occupying un-objectionable lands in slum areas.

The Government is deeply disturbed about the financial position of Municipalities and Municipal Corporations. The resources crunch in these bodies is reflected in the sad state of maintenance of Water supply, sewerage, roads etc., in the Municipalities. Keeping this position in view the Government have released so far to the Municipal Corporations and Municipalities a sum of Rs.956.32 lakhs out of a sum of Rs.1012.59 lakhs provided in the Non-Plan budget of the current year under various compensations and other grants. In addition Government have also released a sum of Rs. 407.22 lakhs towards compensation in lieu of profession tax which was withheld during the previous years.

Government have been considering for some time, ways to augment the resources of the local bodies to enable them to discharge their functions effectively. Hon'ble Members are aware that local bodies enjoyed the power to levy this tax . The local bodies are presently being compensated to the extent of the highest collections effected by them in the three years preceding the commencement of the new Act. We would like to double the quantum of compensation being given hitherto. Necessary legislation to give effect to this decision will be placed before this House shortly.

The present water supply to the twin cities is in the order of 90 million gallons a day. In order to augment the present rate of water supply, the execution of water supply scheme (Singoor Project) has been taken up at a cost of Rs.126.80 crores to supply the additional water supply of 60 mgd., in two stages., so that the requirement of 159 mgd., by the year 1991 is taken care of. The stage-I of the Scheme, to supply additional 30 mgd of water, at a cost of Rs.62.86 crores, would be commissioned towards the end of August, 1990. On commissioning of this scheme, it would be possible to supply enhanced quantity of water to the 9 municipalities in the peripheries of the twin-cities, besides increasing water supply position to the city population and other bulk consumers including in and around the Hyderabad city.

The State-II of the Scheme to supply another 30 mgd of water has been integrated with Hyderabad City water supply and sewerage Project. I am happy to inform this august House that the Hyderabad City water supply and sewerage Project costing about Rs.257.06 crores in the final stage of clearance by the World Bank for funding.

Public Distribution System

As this august House is aware, during the period 1982-83 to 1988-89 a sum of Rs.926.48 crores has been spent by the State Government on supply of subsidized rice. This is in addition to the subsidy element inherent in the price of rice supplied by the Food Corporation of India The subsidy borne by the Government of India during the period 1982-83 to 1988-89 is roughly estimated around Rs.545 crores. During the current year the State Government's expenditure on the subsidized rice scheme will be of the order of Rs.300 crores while the subsidy by Government of India will work out to about Rs.100 crores. A sum of Rs.338 crores has been provided in the Budget for 1990-91 towards subsidized rice scheme.

There was a detailed discussion regarding the various aspects of the scheme in the District Collector's conference held recently. The Collectors have brought to the notice of the Government that a large number of ineligible families are holding green cards. They have also mentioned about the existence of bogus and ghost cards. The collectors also pointed out that the huge differential between the market price and the subsidized price is one of the main reasons for people resorting to malpractices.

Keeping in view the deliberations of the District Collectors' conference, the Government will streamline the subsidized rice with the objective of eliminating malpractices and ensuring that the benefit goes to the really deserving people.

Keeping in view the relatively higher nutritional value of wheat as compared to rice the green card holders. While the Government is convinced about the need for supplying subsidized foodgrains to the really poor people, it also feels that the present scheme needs a close scrutiny and that necessary changes should be made in the scheme basing on experience.

The State Government have also suggested to the Government of India that the State would procure 30 lakh tonnes of rice for the central pool stead of the present level of 15 lakh tonnes provided Government of India agrees to release 25 lakh tonnes provided Government of India agrees to release 25 lakh tonnes to the State for public distribution. Alternatively, the State Government has requested the Government of India to permit the Civil Supplies Corporation to procure rice at the notified prices and avail concessional rate of interest from the Reserve Bank of India.

Maintenance of Assets

From the point of view of the community, proper maintenance of assets created is as important as creation of new assets. Unfortunately maintenance of assets like Irrigation sources and Roads was totally neglected in the recent years and consequently there has been a perceptible deterioration in the quality of maintenance of assets. Our Government is anxious to reserve this trend and ensure that adequate attention is paid to maintenance of assets already created. Hon'ble Members will be happy to learn that in the Budget for.

1990-91 The provision made for maintenance of roads is Rs.108.87 crores against the current year's provision of Rs.81.94 crores. As regards maintenance of irrigation sources, as against the current year's provision of Rs. 31.44 crores a sum of Rs. 43.48 crores has been provided in the Budget for 1990-91.

Natural Calamities

There were heavy rains and floods in July/August, 1989 and some parts of the State were severely affected. Again in November 1989, there was a cyclone in Nellore and Prakasam districts.

In respect of floods in July-August 1989, the State Government have accorded sanction for incurring a total expenditure of Rs. 87.63 crores for various relief, rehabilitation and repair works, while Government of India have communicated ceilings for incurring a total expenditure of Rs. 48.51 crores excluding the amount towards conversion of short term loans into medium term loans. Against this the Government of India will provide an assistance of Rs. 28.42 crores inclusive of their share of margin money. The State Government have therefore, to bear an expenditure of Rs. 59.21 crores including balance share of State's margin money.

In respect of cyclone in November 1989, the State Government already accorded sanction for incurring a total expenditure of Rs. 11.95 crores towards relief, rehabilitation and repairs. The Government of India communicated recently ceilings for a total expenditure of Rs. 7.19 crores. The assistance from the Government of India may be available to the extent of Rs. 5.39 crores, and the State Government will have to incur, from its own funds, an expenditure of Rs. 6.56 crores.

Welfare of Employees and Pensioners

As the Hon'ble Members are aware, our Government belief that the relationship between the Government and its employees should be based on mutual trust and understanding of eatch other's problems.

The Government have sanctioned the additional installment of Dearness Allowance to the employees with effect form 1.7.89 to be on par with the rates admissible to the Central Government employees. As regards pensioners, I am happy to inform the House that the Government have sanctioned the Dearness Relief to the pensioners duly consolidating the basic pension and relief on pension as on 1.1.1986. Government have also enhanced the minimum pension from Rs.100/- to Rs.370/- per month with effect from 1.12.1989.

The estimated additional expenditure due to sanction of dearness relief and enhancement of minimum pension will be Rs.73.15 crores during 1990-91. The total arrears of dearness relief from 1-7-1986 to 30-11-1989 are estimated at Rs.73 crores. I have to necessarily mention in this context that the arrear liability of Rs.73 crores on dearness relief is something which has been inherited by us from the previous Government which failed to fulfill its obligation towards pensioners.

Accounts 1988-89

Against the estimated revenue deficit of Rs.71.70 crores, the accounts for the year 1988-89 revealed a revenue surplus of Rs.33.30 crores and the year closed with a deficit of Rs.33.20 crores.

Revised Estimates 1989-90

The original estimated revenue deficit was Rs.146.28 crores. However as per the Revised Estimates 1989-90, the revenue deficit is Rs.357.10 crores. The main reasons for increase in the Revenue deficit in the Revised Estimates are shortfall in anticipated collections under Sales tax, substantial expenditure on account of natural calamities and unanticipated expenditure towards leave salary for the strike period of the employees.

The overall transactions of the year reveal a deficit of Rs. 103.23 crores against the original estimated deficit of Rs.184.42 crores. The reduction in the deficit is due to the revision of the Plan outlay from Rs.1400 crores to Rs.1251.22 crores and also due to larger receipts under Small Savings collections.

After taking into account the opening deficit of Rs.33.20 crores, the year 1989-90 is expected to close with a deficit of Rs.136.43 crores, against the estimated closing deficit of Rs.230.39 crores.

Budget Estimates 1990-91

The revenue deficit for the year is estimated at Rs.325.01 crores. The overall transactions of the year 1990-91 are estimated to result in a gap of Rs.60.13 crores. After taking into account the estimated opening balance of Rs.(-)136.43 crores, the year 1990-91 is estimated to close with a deficit of Rs.196.56 crores.

I realize that the Hon'ble Members will feel rather concerned about the anticipated closing deficit. The Government are optimistic that this anticipated closing deficit can be brought down to a manageable level in view of certain likely developments such as finalisation of quantum of central assistance, market borrowings and negotiated loans.

We are also hoping that Central Government will undertake necessary legislation for levy of Consignment Tax during the year 1990-91. As Hon'ble Members are aware the States get a share in the Consignment Tax receipts.

On our part we would like to rationalize the existing tax structure and also streamline the functioning of major tax collecting departments like Commercial Taxes Department, the Excise Department, the Revenue department and the Transport department. We are also considering seriously effective methods for recovery of arrears.

With the measures outlined above, we are hoping to reduce the budgetary gap.

Sir, with these words I commend the Budget to this House.

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