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GOVERNMENT of ANDHRA PRADESH
FINANCE DEPARTMENT
Previous Budget Speeches

FINANCE MINISTER'S BUDGET SPEECH 1993-94

 
SPEECH OF

SRI K. ROSAIAH

HON'BLE FINANCE MINISTER

PRESENTING THE BUDGET FOR 1993-94

TO
THE ANDHRA PRADESH LEGISLATIVE ASSEMBLY
ON THE 17TH FEBRUARY, 1993.
 
INTRODUCTION

Sir,

I rise to present the Budget of Andhra Pradesh for the year 1993-94.

The year that has gone by witnessed an unprecedented increase in communal tension all over the country. The firm handling of the situation in our State has the beneficial effect of containing communal disharmony. Maintenance of law and order is an pre-requisite for the healthy growth of the economy. The country as a whole is facing serious economic problem. All our efforts should, therefore, be directed to galvanizing the latent energy of the people of the country for productive purposes. The harmonious relationship between various sections of the society provides the necessary climate for growth. It shall be our endeavour to take all sections of the people with us to realize the full potential of our state.

REVIEW OF ECONOMIC TRENDS

The estimated foodgrains production during the year 1991-92 is 117.05 lakh tonnes compared to 123.30 lakh tonnes during 1990-91. This decline in production was due to reduction in are under foodgrains which was caused by the decencies in rainfall in sowing months and inadequate flows into the reservoirs. The tendency of the farmers to move away from the traditional crops to like rice to more remunerative enterprises fish farming may, in the long run affect foodgrains production in the State. We should, therefore, concentrate on increasing productivity of food crops, specially rice.

During the year 1992-93, South West monsoon had set in with a delay of more than 10 days on 16-6-1992 in Coastal Andhra and Rayalaseema regions and advanced to Telangana region on 18-6-1992. During the South West monsoon period the State as a whole received an average rainfall of 538 mm as against the normal rainfall of 634 mm. The deficit being 15 percent. As a result of prolonged dry spells the standing dry crops were adversely affected. During the North East monsoon period the state as a whole received normal rainfall of 206 mm. But the heavy rainfall received during 2nd fortnight of November, 1992 caused damage to the standing paddy crop which was either ready for harvest or partly harvested and kept in the fields in some areas of the State. The heavy rains caused damage to the other standing crops also. However, the rains helped to overcome drinking water scarcity and also the power shortage. The provisional estimate of food grains production during the year 1992-93 kharif season is of the order of 78.28 lakh tonnes.

As per quick estimates, the Net State Domestic product for 1991-92 at constant prices ( 1980-81 ) is estimated at Rs.11925 crores compared to Rs.11602 crores during 1990-91(provisional). At current prices, it amounted to Rs.36102 crores as against Rs.30168 crores during 1990-91 ( provisional ). It registered an increase of 2.8 percent at constant prices and 19.7 percent at current prices over that of the preceding year. The composition of Net State Domestic Product at constant ( 1980-81 ) prices reveals an increasing share of the tertiary sector with a decline in the share of primary sector.

The state per capita income during 1991-92 at current prices is estimated at Rs.5570 compared to Rs.4731 during 1990-91 ( provisional ),which at constant prices it amounted to Rs.1840 compared to Rs.1819 during (1990-91) (provisional). It registered an increase of 17.7 percent at current prices and 1.15 percent at constant prices over that of the previous year.

The average Index of Industrial Production (1970-71 = 100) for the year 1991-92 showed a marginal increase of 1.7 percent over the previous year. In the first nine months of 1992-93 on the other hand, there is decline of 2.7 percent over the corresponding period of last year in the average index of industrial production. This is due to decline in power supply as well as consequential decline in manufacturing.

The wholesale price index (1970-71 = 100) for agricultural commodities in the State decreased from 617.5 in March 1992 to 606.2 in September 1992 registering a fall of 1.8 percent as against an increase of 4.0 percent at All India level during the same period. The consumer price index (1960 = 100) for industrial workers in the State increased from 1135 points in March,1992 to 1204 in October, 1992 registering an increase of 6.6 percent at All India level during same period.

ANNUAL PLAN

Hon’ble Members are aware that the 8th Five Year Plan commenced from the present year. Though the Planning Commission approved an outlay of Rs.1660 crores for 1992-93, we have provided in our Budget an outlay of Rs.1996 crores. The revised outlay for the current year is Rs.1998 crores which is nearly the same outlay as budgeted, but with marginal sectoral adjustments. For the year 1993-94, the Planning Commission approved an outlay of Rs.1851 crores. Keeping in view the need for accelerating the tempo of works, specially in the irrigation and power sectors and the welfare schemes benefiting the disadvantaged sections of the society, an outlay of Rs.2075 crores is provided in the Budget for 1993-94.

POWER

Power sector continues to receive attention in our Planning exercises as the overall economic development of the State is intimately connected to the availability of power. The budgeted plan outlay for schemes taken up by the State Electricity Board is placed at Rs.539 crores for 1993-94.

We are aware that this sector needs much larger outlay. We cannot, however, ignore the competing demands from the other sectors of the economy on the scarce resources of the State. It is ,therefore, necessary to augment investments in power sector through mobilization of extra budgetary resources. The A.P.State Electricity Board is likely to raise Rs.378 crores in 1993-94 by way of loans from the Power Finance Corporation, Life Insurance Corporation of India, NABARD and Commercial Banks for implementing various power projects in the area of generation ,transmission and distribution.

While presenting the Budget to this august House in March, 1990, I had referred to neglect suffered by the power sector during 1980s and promised to reverse this trend and renew our efforts at making the State self-sufficient in power generation. The steps taken by us so far in the last three years likely to yield substantial results shortly. We hope to increase the installed capacity to 5900 MWs by the end of March,1994.

If we have to attain a reasonable level of self-sufficiency in power sector, it is also necessary to mobilize private sector investment in power projects. We would therefore, like to take full advantage of the policy of Government of India to allow private sector participation in power projects. In tune with this policy, the implementation of gas based power projects at Kakinada and Jegurupadu have been entrusted to the private parties for establishing 200 MW power stations at each these places in the first phase. Negotiations are at an advanced stage for obtaining private sector investment in 1000 MW coal based power station at Visakhapatnam. Efforts are also being made to secure private participation for establishing 1000MW coal based thermal station at Krishnapatnam.

Hydel generation has serious limitations as the capacity of our reservoirs is limited and even in a year of good monsoon, it cannot fully bridge the gap between demand and supply during summer. We are, therefore, vigorously pursuing with Centre for obtaining coal linkage for establishing two stations of 500 MWs each at Kothagudem and Ramagundam.

Honble Members are aware of the limited quantity of natural gas available for power generation in the Krishna Godavari basin. Our Chief Minister has taken up with the Government of India, the need for establishing a gas pipeline from Bombay High to the Southern region to enable the Sates in this region to take up gas based power stations. I am happy to inform the House that the proposal for laying a gas pipeline from Bombay High to the Southern region has been approved in principle by the Centre.

We are aware of the feeling in some quarters that Agricultural Sector is subsidized so far as power tariff is concerned. We are a predominantly agriculture based economy and the contribution of the small and marginal farmers to increasing food grains production cannot be ignored. In order to give relief to the farming community, the tariff has been reduced from Rs.100/- to Rs.75/- per HP per annum up to 5 HP. With a view to clearing the backlog of application for energisation of wells, the target has been increased from 50,000 to 1 lakh wells in the current year.

IRRIGATION

Irrigation constitutes the basis for sustained agricultural development and our objective is to complete as many of the on-going schemes as possible. For the total irrigation sector, an allocation of Rs.537.02 crores is for Major Irrigation and Rs.25.20 crores for Medium Irrigation. The Honble Chief Minister has declared the year 1993-94 as the Year of Minor Irrigation. With a view to accelerating the pace of execution of Minor Irrigation schemes, a provision of Rs.100 crores has been made in 1993-94 which is a significant increase of Rs.43.16 crores over the provision of Rs.56.84 crores made during 1992-93.

Under Major Irrigation, a provision of Rs.303 crores is earmarked for the ongoing projects including Sriramsagar Project Stage-I, Srisailam Right Bank Canal, Tungabhadra Project High Level Canal Stage-II, Jurala Project, Telugu Ganga Project, Srisailam Left Bank Canal etc., which will provide irrigation to the drought prone and backward areas of the State. Members are aware that the Sriamasagar Project, Stage-I and Srisailam Right Bank Canal are under execution with financial assistance from the World Bank. Sunkesula barrage, Alaganur Balancing Reservior and Gannavaram Aqueduct have also been provided the required financial support.

The Central Water Commission has cleared in December, 1992, three Medium Irrigation Projects viz., Kaulasanala project in Telangana region, Maddileru in Rayalaseema region and Errakaluva in Coastal area. Owing to concerted efforts of the State, the Central Water Commission has also cleared long pending hydrological issues of Sriramsagar Project Stage-II and Polavaram Barrage. Discussions are going on with the Government of India to get the other pending projects cleared as early as possible.

In order to restore the Irrigation system in Major, Medium and Minor Projects and the drainage schemes of the coastal area damaged due to May 1990 cyclone, a provision of Rs.115.86 crores under Cyclone Emergency Reconstruction Project has been made for 1993-94 so that the repair works undertaken can be completed within the stipulated time.

Provision of Rs.8 cores under Command Area, Rs.7.96 crores under National Water Management Project and Rs.6 crores under Modernisation of existing canal system have been made which are intended to reduce the gap between irrigation potential created and its utilization.

In all the programmes, special attention is being paid for taking up and completing works benefiting Scheduled Castes and the Scheduled Tribes.

The Honble Members are aware that a large number of land acquisition cases relating to Srisailam Project are pending in Sub-Courts and High Court for the last 10 to 15 years. Due to various reasons, enhanced compensation claims could not be settled so far. It is the endeavour of the Government to settle these 30,000 cases pending in Sub-Courts and High Courts as early as possible to offer immediate relief to the displaced families and therefore the outlay for Srisailam Project has been enhanced to Rs.32 crores in 1993-94 from the current years level of Rs.11 crores.

SOCIAL WELFARE

Honble members are aware that the Government accords highest priority for the academic development as well as personality development of the children belonging to weaker sections. Towards this end, the Government have started 23 more residential schools for the weaker sections during the current year to admit about 10,000 students. Simultaneously with the development of school education, Government is also proposing to take steps to improve the quality of education at Post-Matric Level. In order to achieve this, it is proposed to sanction three new scheduled caste Residential Junior Colleges during the year 1993-94 to provide increased access to higher education of good quality and thereby improve their ability to compete with the others for higher academic and technical courses.

In order to improve the academic results of the students of Government hostels, special hostels have been opened in all the districts for giving coaching to 9th and 10th class students and an amount of Rs.1.15 crores was spent on these hostels during 1992-93. Simultaneously, with a view to taking care of the drop-outs at the 10th class level, it is proposed to give short term coaching to 10,000 Xth class failed boarders. An amount of Rs.65.00 lakhs has been set apart for this purpose during 1993-94.

In order to develop the productivity of S.C., and S.T., lands, a number of minor irrigation structures such as C.I. wells, lift irrigation schemes etc., have been taken up. However, most of this potential remained un-tapped, because a large number of these sources could not be energized. Government have decided to energize 40,000 such sources belonging to S.C., and S.T., during the current financial year by raising additional funds from sources such as A.P. State Co-operative Bank and NABARD. The outlay for taking up welfare schemes for the Scheduled Castes has been increased to Rs.37.92 crores.

In the field of tribal development a massive effort is being made to improve the economic well-being of the tribals by persuading them to give up Podu cultivation and concentrate on settled agriculture. The Andhra Pradesh Tribal Development Project assisted by International Fund for Agricultural Development of irrigation sources, promotion of horticulture and popularization of improved technology in agriculture. This project has been well received by the tribals and is progressing well. The outlay for tribal welfare has been increased to Rs. 28.10 crores from the current years level of Rs.20.25 crores.

The literacy rate among the tribals is very low mainly due to lack of education facilities in the remote villages inhabited by the tribals. It is proposed to create a village development fund of Rs.20.00 lakhs for encouraging community participation in providing educational facilities in remote tribal areas of the State. It is proposed to give thrust to the organization of thrift societies among tribals by providing an amount of Rs.10.00 lakhs during the year 1993-94.

The allocation for the development of B.Cs, was increased from Rs.18.50 crores to Rs.20.65 crores in the Budget for 1993-94. Special schemes are being taken up for the benefit of children of Nai-brahmins to provide them training in traditional musical instruments and also for improving the infrastructure facilities for washermen and Nai-brahmins.

schemes are being taken up for the benefit of children of Nai-brahmins to provide them training in traditional musical instruments and also for improving the infrastructure facilities for washermen and Nai-brahmins.

HOUSING AND HOUSE-SITES

In tune with the Government’s policy of providing houses to the weaker sections of the society, guidelines have been issued to set apart 50% out of the amount of Rs.50 lakhs earmarked for taking up developmental works in each of the Assembly Constituencies for construction of houses to the weaker sections in the rural areas. With the funds made available by the Member of the Legislature for this sector, the Budgetary support provided by the Government and with generation of internal resources by the Housing Corporation, we hope to take up housing programme for the weaker sections of the order of 3.24 lakh houses in the two years 1992-93 and 1993-94. This is a massive programme which requires immediate identification of beneficiaries, mobilization of institutional finance and people’s participation to complete the houses before the end of March, 1994. I have no doubt that the participation of Hon’nble Members in this programme would give the necessary fillip for adhering to our schedule of completion of houses.

Distribution of house sites to the weaker section is also continuing to be a priority item for the Government. The allocation for the house site programme has been increased to Rs.25 crores next year from the current year’s level of Rs.20 crores.

WELFARE OF MINORITIES

Government have seriously addressed itself to the socio-economic well-being of the minorities. In order to understand the special problems of the minorities a number of studies have been undertaken which would highlight the areas that deserve immediate attention. The Minorities Finance Corporation is extending financial assistance in collaboration with Banks for helping the educated unemployed among the minority community to set up small scale and cottage industries and small ventures to enable them to earn a living. A special cell is functioning to closely monitor the implementation of various welfare measures for the minority communities.

AGRICULTURE & ALLIED ACTIVITIES

In the field of agriculture, our endeavour is to popularise new crops which have better earning potential to the farmers. In this direction, the Government is trying to promote cultivation of soyabean crop in Adilabad district. An area of 2400 hectares in 216 villages have been covered and the results, so far have been satisfactory. Encouraged by the experience in Adilabad District, the crop has been extended for cultivation in 8 more districts by distribution of mini kits. The Government has also started, on a pilot basis, Jatropha cultivation over an area of 29,000 acres which is mostly waste land and unfit for other remunerative agricultural activity. It is expected that, in the long run, it will be good source of energy in addition to being a measure for waste land development in our state.

The diverse agro climatic conditions in Andhra Pradesh offer wide opportunities for the cultivation of horticultural crops yielding attractive incomes to the farmers as well as farm workers. The accent is on promoting horticulture crops in dry and water scarce areas of Rayalaseema and Telangana through provision of drip irrigation which is a highly water saving technology. The farmers are provided with a subsidy equivalent to 50% of the cost of installation of the drip system.

Hon’ble Members are aware of our efforts to promote palm oil cultivation in the State. Apart from maintaining the Oil Palm plantations already taken up, an amount of Rs.22.50 lakhs has been allocated as State’s share to increase the area under Oil Palm in 10 districts in 1993-94.

A new scheme to establish demonstration farms for growing medicinal and aromatic plants in the high altitude areas of the State is under contemplation of the Government. In view of the growing importance of horticulture, we propose to establish an Institute for Horticultural Training and Development to train the technical staff and farmers in the latest technical developments and extension methodologies.

The Hon’ble Members will surely agree with me that the growth of Institutional Finance plays a crucial role in promoting agriculture and allied activities. In the current year, crop loans amounting to Rs.525 crores have been disbursed through the cooperatives which represent an increase of 75% over that of last year. Similarly, to meet the long term investment requirements of the Agriculture Sector, the Co-operative Institutions of our State have disbursed Rs.225 crores in this year compared to Rs.142 crores last year. This improvement in disbursement of credit through the cooperative credit structure reflects the health of these institutions in our State.

The Marketing Institutions in the State are being strengthened with better market information net-work for monitoring agricultural prices for the benefit of farmers at 43 important market centres. This will facilitate quick flow of information about market prices as prevailing in other important market centres of the State as well as outside. The promotional agency for the farmers to directly export good quality mangoes to European and Middle East market which will fetch them a larger return than what is realized by them now. Necessary spade work in the form of pre and post-harvest technology, packaging, grading and pre-cooling is being attempted for exporting 2000 MT of mangoes this year, on a pilot basis.

URBAN DEVELOPMENT

As part of the Government’s commitment to remove the mismatch between the financial resources and the responsibilities of the urban local bodies, devolution’s under profession tax as also under per capita grant have been significantly stepped up. Process has also been set in motion for rationalization of property tax under the A.P. Municipalities (Assessment of Taxes) Rules, 1990 and under the Hyderabad Municipal Corporations (Assessment of Property Tax) Rules, 1990 which would pave the way for building up a strong fiscal base in Municipalities and Corporations. I am confident that with the enhanced financial empowerment now provided to urban local bodies, there would be qualitative and quantitative improvement in the civic amenities and urban environment.

A new Corporation namely A.P. Urban Finance and Infrastructure Development Corporation has been set up to channel project finance from HUDCO for low cost sanitation schemes and other programmes of urban development.

Government continues to accord high priority to implementation of water supply schemes in urban areas for which a total provision of Rs.78.59 crores has been proposed in this budget as against Rs.73.29 crores in 1992-93. Efforts are being made to mobilize external aid including assistance from the World Bank for the accelerated implementation of major projects like the twin cities drinking water augmentation scheme based upon Nagarjuna Sagar Project.

I am glad to inform the House that for the first time Government have initiated concrete and comprehensive measures to reverse the degradation of Hussain Sagar lake by according approval to a special project at an overall cost of Rs.18 crores. The project is expected to be completed in three years and an outlay of Rs.6 crores each has been provided in the current year and next year.

The Government of India have agreed to provide special central assistance of Rs.15 crores in the current year for improving civic amenities in the twin cities of Hyderabad and Secunderabad. A comprehensive project at an estimated cost of Rs.36 crores has been prepared which will be implemented with budgetary support of Rs.15 crores each during the current year and next year. The balance amount will be found by the Municipal Corporation of Hyderabad from its internal resources.

LIGHT RAIL TRANSIT SYSTEM

With a view to catering to the ever increasing traffic needs of the public in the twin cities, the State Government has drawn up an ambitious programme of LRTS which is the first of its kind in the country with an outlay of Rs.300 crores. This incidentally will also solve the pollution problem to a great extent. The proposal of the State Government was accepted by the Government of India and a Memorandum of Understanding was signed by the Government of India, the government of Andhra Pradesh and the ILFS. The project envisages LRTS for a distance of 18 Kms. From Charminar to Balanagar and 6 Kms. Between Dilsukhnagar and Mozamjahi Market. For implementation of this Project, a Joint Stock Company with Central and State Governments, BHEL, RITES and IRCON as partners,is proposed to be set up.

The Hyderabad Light Rail Transit System Authority has been constituted under the Chairmanship of the Chief Minister. The main feature of LRTS is that each train transports about 870 passengers at a time. The system would clear 15660 passengers per hour in each direction.

RURAL DRINKING WATER

Provision of safe drinking water in the rural areas continues to engage the attention of the Government. Under Minimum needs programme, Rs.41 crores have been allocated to attend to the problems of villages with drinking water scarcity. Similarly under Accelerated Water Supply Scheme 300 problem villages are being proposed to be covered by spending Rs.28 crores with assistance from Government of India. We shall endeavour to ensure that drinking water is made available in all our villages in adequate quantity and in as short time as possible.

EDUCATION

In the field of Education, universalisation of elementary education is accorded the highest priority by the Government. As part of this approach, the scheme of Operation Black Board is being implemented to improve the infrastructural facilities in primary schools. Under this scheme, 20,286 teachers have already been appointed and 16,521 class rooms have been taken up to provide adequate space in addition to providing other teaching and learning materials to primary schools. During 1993-94, Rs.11 crores are proposed to be utilized under ODA assisted primary education project to extend the coverage of improved infrastructural facilities and for upgrading the professional competence of the primary school teachers through a series of inservice training programme.

In addition to strengthening elementary education, Rs.7.22 crores are proposed for providing educational facilities to the school drop-outs and non-starters who are in the age group of 9-14 years under the scheme of Non-formal Education. Open school system is being implemented for consonance with the objectives of the new education policy. The programme of total Literacy Campaign is being extended to cover 8 remaining districts and Rs.11 crores have been earmarked for this programme in the year 1993-94.

In the area of Higher Education, the emphasis is on strengthening the infrastructure for improving the quality of education instead of on expansion. The U.G.C. has promised to provide Rs.3 crores for construction of libraries and other facilities in the existing institutions. To take advantage of this scheme, Rs.61 lakhs have been provided as the State’s own contribution to the scheme. In the Intermediate stage, special attention is paid to starting of vocational courses. 500 more vocational sections will be started in addition to 1,480 sections already existing in the Intermediate colleges.

INDUSTRIES

It is now accepted by all that the pace of industrialization depends on initiatives in the private sector. It is our endeavour to provide the necessary climate and infrastructure for a rapid industrialization of the State. Reliable and sustained supply of power is an essential pre-requisite for industrialization of the State. We have, therefore, given power generation the highest priority in our planning process. We hope that with the increased investments by the State Electricity Board and likely investment by private entrepreneurs in the power sector, we shall soon reach a stage where the industrialists would automatically prefer investments in our State. It is also essential that our scarce resources are not spread thinly in public sector enterprises which require substantial investment with little contribution to the overall development of the state. We have to gradually transfer such units to the private sector which has the necessary resources and the managerial ability to make them viable. Our attempt at privatization of Hyderabad Allwyn is a step in this direction.

The exploration of minerals and ores have contributed significantly to the industrial development, particularly with respect to mineral based industries in the State and also towards the generation of revenues to the State Government. The availability of raw material, favorable industrial climate and entreprenuership have provided a firm base for the development of granite industry in the State. The Government, through its policy changes in the year 1992, have streamlined the procedure for the grant of quarry leases for granite to ensure that only genuine entrepreneurs who would be establishing units in the State are given the lease.

HANDLOOMS

Recognizing the socio-economic importance of the Handloom Industry and the need for improving the economic conditions of Handloom weavers, the State Government is making efforts for the development of Handloom industry.

The scheme of supply of Janatha Sarees and Dhoties will benefit 50 lakh families covered under white ration cards while giving the required employment to the weavers.

It has also been decided to organize two societies in each district for destitute weavers which will be provided a margin money of Rs.1.00 lakh towards capital support at the rate of Rs.2000/- per destitute weaver to augment his resources and increase the production capacity.

MEDICAL & HEALTH

In the field of Medical and Health, the Government is according the highest priority to family welfare, population control and primary health services. Under the Population Project VI, our State has been permitted 200more sub-centres in addition to 400 Sub-centres already under construction by the Government of India. Hon’ble Members are aware that the teaching hospitals in our State are well established. However, the facilities in these institutions are not adequate to meet the increasing demand on the services of these institutions owing to pressure of population. With a view to providing better facilities to the patients, an additional grant of Rs.5 crores has been provided in the Budget for 1993-94.

CYCLONE EMERGENCY RECONSTRUCTION PROJECT

The works taken up under the Cyclone Emergency Reconstruction Project are progressing well. I am happy that the beneficiaries of the project, the public representatives and the World Bank have expressed satisfaction about the manner in which the project is being implemented and the quality of the works executed. The enthusiastic participation by the beneficiaries, the support extended by the public representatives and deep sense of commitment shown by the implementing staff have all contributed to the success of the project. Rs.284.83 crores have been provided for this project in the Budget for 1993-94.

SPECIAL DEVELOPMENT SCHEMES

While the Cyclone Emergency Reconstruction Project had addressed itself to the problems of the delta regions in the 9 coastal districts of the State, the Government are also anxious to deal with the problems of the dry and arid regions of the State with emphasis on promoting welfare of the dis-advantaged sections of the society. Keeping this objective in vies, a multi sectoral Poverty Alleviation Programme with emphasis on providing sustained economic support to the Scheduled Tribes living in areas which have no assured irrigation source has been prepared and posed to World Bank for assistance. The World Bank Mission visited the State for a preliminary discussion on the contents and the modalities of implementation of this project. We hope to receive favorable response for this project soon.

Simultaneously a comprehensive agricultural development project is being prepared to deal effectively with the uncertainties faced by the farmers in dryland agriculture. The project is under preparation and will be posed to the World Bank for financial assistance.

In the Budget for 1993-94, an amount of Rs.4 crores has been provided to the Drought Prone Areas Development Authority for taking up programmes in the areas prone to periodic droughts. The outlay for DPAP has also been doubled and is now placed at Rs.12 crores for 1993-94. We hope that the Government of India would provide an equal amount as matching contribution. An amount of Rs.17.25 crores has also been provided to take up programmes in the remote and interior areas.

LAW AND ORDER MACHINERY

Maintenance of law and order is the primary responsibility of the state and in recent times, the effectiveness of the police force has become all the more important in view of the communal tensions, extremist violence etc. With a view to strengthening the law and order machinery at the grass root level, the police force in 222 mandals has been increased to bring these police stations on par with the rural police stations. To have an effective span of control, 95 new police circles and 15 mew sub-divisions have also been opened during the current year. These measures will help in police responding to the needs of the society promptly and efficiently.

PUBLIC DISTRIBUTION SYSTEM

Hon’ble Members are aware of the decision of the Government to increase the entitlement of rice to white card holders from 4 kgs per head to 5 kgs and the maximum quantity from 16 kgs to 20 kgs per card with effect form January, 1993. This increase in the entitlement of rice has benefited 102 lakh families in the State, covering a population of 4.56 crores. In view of the increased entitlement of rice per card, there is need to considerably step up procurement of rice for maintaining supplies to the Fair Price Shops. I am happy that in the present procurement season, we have so far procured 18 lakh tonnes, which is an all time record in the annals of procurement in the State.

ADVERSE SEASONAL CONDITIONS

I had earlier referred to the delayed and erratic monsoon which has resulted in reduced areas of cultivation and reduction in yields where the crops have been raised. To help the farmers and agricultural laborers to tide over the adverse seasonal conditions, an amount of Rs.10.75 crores was released for taking up relief works such as restoration and repairs of minor irrigation tanks and construction of percolation tanks and check dams. These works, besides providing employment to those affected by drought, would also help in mitigating the adverse impact of drought conditions in future. Some parts of the State have also been affected by acute shortage of drinking water and the Government is tackling it on a massive scale by release of Rs.25.12 crores for augmenting the existing drinking water sources and providing new sources wherever necessary.

The State has also witnessed flood damage in the districts of Srikakulam, Kurnool and Mahboobnagar. These floods have occurred mainly due to heavy rains in some parts of the adjoining states of Orissa and Karnataka. To provide relief to the flood affected population and restoration of utilities damaged due to floods, and amount of Rs.13.78 crores has been released.

ACCOUNTS OF 1991-92

The accounts of 1991-92 on Government transactions showed a revenue deficit of Rs.169.57 crores. The financial year ended with negative balance of Rs.50.93 crores.

REVISED ESTIMATE 1992-93

The Revised Estimate of resources and expenditure for 1992-93 indicates a revenue deficit of Rs.194.67 crores as against the estimated revenue deficit of Rs.342.77 crores. The year is expected to close with a negative balance of Rs.53.05 crores.

BUDGET ESTIMATE 1993-94

It is estimated that the revenue deficit for 1993-94 would be Rs.234.88 crores and the overall deficit is likely to be Rs.224.98 crores taking all the transactions of the year into account. Because of the opening negative balance of Rs.53.05 crores, the financial year 1993-94 is estimated to close with a deficit of Rs.278.03 crores.

The large uncovered deficit is a matter of concern to all of us. We will initiate measures to increase tax collections and streamline the procedure for ensuring better tax compliance. Efforts will also be made to improve the collections under small savings which registered a decline in recent years. We have already announced a package of incentives for popularizing small savings, which I hope would enhance collections. We will also watch the behavior of major tax and non-tax revenues and come up with measures for additional resource mobilization, if considered necessary.

Sir, with these words, I commend the Budget for approval of the House.

 
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