1. I rise to present the Budget of the Government of Andhra Pradesh for the year 2002-03. I am delighted to inform the August House that Government have honoured its commitment to release Draft Budget proposal in the name of Annual Fiscal Framework (AFF) for open discussion and present the Budget for 2002-03 duly reflecting the critical priorities indicated by the people of Andhra Pradesh through their constructive and useful contributions. While expressing my hearty gratitude to the various sections of the people of Andhra Pradesh for their invaluable advice and suggestions, I must congratulate all my visionary colleagues for having led the debate at various levels to invoke positive contributions to fix the contours of this year’s budget. We have proved to the world that this Government stands by its words to give SMART governance to the people of Andhra Pradesh and is sincere in seeking their active partnership in shaping the future of the State. Infact, Andhra Pradesh is the first ever state in the country to have invited public debate and constructive response from the public as part of the critical exercise of formulation of the state budget for the year 2002-03. It may be recalled that on 29th January, 2002, Government released the Fiscal Reform Strategy Paper highlighting medium term fiscal framework for the period starting from 2002-03 to 2006-07, the final year being the terminal year of the Tenth Five Year Plan, as well as the Annual Fiscal Framework for 2002-03. Government also released 15 other Strategy Papers in the critical sectors of Agriculture, Irrigation, Health and Education, Welfare, Local bodies and Poverty Eradication etc. to ensure that all the vital Fiscal Strategies formulated by the Government are totally transparent right from the conception stage to the execution stage in consonance with other critical sectoral strategies.
2. Annual Fiscal Framework 2002-03 has been nothing else but the draft budget proposal presented in a simple and demystified manner to be understood by all. This flexible framework laid down the broad allocations for each department under non-plan and plan under several categories of expenditure while giving freedom to the departments to leverage these funds to attract private investments and community participation to achieve Vision-2020 goals and targets. It also laid down the fiscal policy parameters like fiscal deficit, revenue deficit and debt stock limits and other desirable levels of allocations for priority sectors. In all, Annual Fiscal Framework provided enough details of the draft budget proposal to give an overall idea to the public on various aspects of the fiscal management of the state. It was sent to the media, academicians and all political parties and was posted on the Internet in a bid to evoke general public response, suggestions and contributions to formulate the final budget.
3. A very useful, open and mixed response was received from various sections of the people across the State. But it is very important to note that many people responded just because they were in a position to understand the budget, which was made so simple and easily understood for the first time. We invited all political parties for discussion. Universities, various institutions, State level and District level Workshops provided tremendous opportunity to interact with intelligentia, professionals, academicians and experts from various fields to throw some light on the important aspect of fiscal framework. Panel discussions on various TV Channels, interaction via E-mails, discussions in newspaper columns and editorials helped us to appreciate the concerns and feelings of various sections of the society towards the draft budget proposals. Even the common man could get an opportunity to directly interact with the Chief Minister through “Dial Your CM” Programme. In turn, we received very valuable and down to earth suggestions from the people. It was indeed a very useful feedback. It led us through a difficult exercise to reconcile the conflicting priorities at different levels and convert them into budgetary allocations fully consistent with our fiscal constraints.
4. Based on the feedback received from within the Government and public at large, we have modified allocations to several vital departments. We have also taken a few important policy decisions to give a thrust to agriculture as a growth engine. Andhra Pradesh is an agrarian economy and we believe that the growth in the industrial sector is intimately connected to performance of the agricultural sector. In the overall economic context, already highlighted in the Economic Survey and our commitment to face the challenges of globalization, the Government have decided to set up an Agricultural Development Fund with a contribution of Rs.75 crores to improve agricultural productivity and production. A Cabinet Sub Committee will design new programmes in Agriculture, Horticulture, Animal Husbandry and Fisheries etc., and oversee their implementation. The Government have also decided to enhance allocations for the irrigation sector to create additional irrigation potential on a fast track basis. Further, the Government have allocated Rs.10 crores as a token contribution towards the Market Intervention Fund to assist and enable the farmers to face the challenges of the WTO regime. We hope to receive more contributions to the Market Intervention Fund from other institutions connected with farmers and farming. Provisions have also been enhanced for improving the infrastructure for rapid industrialization and augmenting water supply for Hyderabad and other cities. Employment generation and welfare programmes have also been strengthened.
5. On the whole, this has been a very useful exercise. We will further improve the format of budget presentation and the interactive process and make it a regular feature in future. We will also share with the public, the actual budget performance on a periodic basis during the course of the year.
6. The Government undertook a range of budgetary reforms during the year. Rationalization of budget heads to enhance budget managers’ flexibility, formulation of a new cash management system, releases in compliance with budget and consistent with seasonality are some of the important features of the reforms. Suo-moto advance release of budgetary allocations on a half-yearly basis, followed by quarterly releases is appreciated by all. A mid-year departmental performance review system helped us to strengthen cash management as well as to establish a broad qualitative link to preparation of the next year’s budget. In order to bring about uniformity in pre-audit and account keeping in all the departments dealing with Public Works and to have effective computerized financial management in the areas of expenditure, the Government introduced LOC System for release of funds & the payments in Roads & Buildings, Public Health, Engineering Wing of Panchayati Raj and Forest Department through Pay and Accounts Officers (Works) with effect from 1st April 2001. A major effort has been undertaken to de-link staff from temporary schemes to provide greater flexibility to the departments for their deployment. The Government also introduced the concept of user charges and gave flexibility to the departments to levy charges and retain revenues for their operational improvements. Integrated Finance Information System is going to be put in place soon to integrate the different existing computer applications in various wings of the Finance Department with AG, RBI, Banks and the Departments with online data transfer from the Treasury to achieve the vision of electronic financial management.
VISION 2020: PERFORMANCE INDICATORS
7. Vision 2020 of the state has articulated the development goals to be achieved by 2020. The Gross State Domestic Product (GSDP) of the state is expected to grow by 9-10% a year, on an average, in real terms for the next 20 years. The average per-capita income is expected to increase nine times, with incomes for the poor growing much more rapidly. Population growth is proposed to be contained at less than one percent a year and at least 18 to20 million new jobs are likely to be created. Total literacy is proposed to be achieved in the state by 2005. Keeping in view the above aggressive growth rates and extremely challenging goals, as envisaged in Vision 2020, an exercise has been undertaken during the current financial year to closely monitor the budget expenditure of the line departments and the targets achieved every quarter under the performance indicators. Uniform formats have been prescribed for reporting the performance achieved at various levels periodically. Each department has been asked to study the best practices of the other states to examine the suitability of their replication in our state to improve productivity and cost effectiveness.
8. The quick estimates of Gross State Domestic Product (GSDP) at constant (1993-94) prices for year 2000-01 work out to Rs. 84,777 crores as against the provisional estimates of Rs. 79,553 crores for the year 1999-2000 showing a Growth Rate of 6.57 percent. The per capita income at constant prices (1993-94) for the year 2000-01 is estimated at Rs. 9,982 as against the provisional estimate of Rs.9,457 for the year 1999-2000 registering a growth rate of 5.55 percent.
9. During the South-west monsoon period, the average rainfall received in the state was 534mm. as against the normal rainfall of 624mm, the deficit being 15 percent. Even though in the South-West monsoon period, the average rainfall received appeared to be normal, the kharif crops were badly affected due to prolonged dry spells particularly in period from 14th June to 25th July. The average rainfall received during the North-East Monsoon period was 264 mm. as against the normal rainfall of 224 mm., the excess being 18 percent.
10. According to the provisional estimates for the year 2000-01 the production of food grains and oilseeds is 160.27 lakh tonnes and 24.99 lakh tonnes respectively as against 136.97 lakh tonnes and 13.61 lakh tonnes during 1999-2000.
11. Due to deficient rainfall received in the State, resulting in reduction in the cropped area and un-employment in agriculture sector, coupled with scarcity for drinking water, Government have declared 993 mandals as drought affected in 22 districts. Government have released a sum of Rs. 279.34 crores from Calamity Relief Fund for the relief works. 25,000 houses have been sanctioned under Indira Awas Yojana.
12. Around Six thousand families have been covered under Apathbandhu scheme and it is further renewed to cover 3,200 families with an insurance cover of Rs. 50,000 to be paid to the dependents of the deceased. Similarly, around 2,23,735 families have been assisted under “Gruharaksha” scheme.
Food For Work Programme
13. I am happy to inform that due to constant persuasive efforts of our Chief Minister, 16.50 lakh M.Ts. of rice amounting to Rs.932.35 crores at the rate of Rs.5.65 per kg., was released by Government of India under Food for Work Programme to take up Employment Generation Works. Similarly an amount of Rs.958.36 crores under various other schemes is dovetailed to Food for Work Programme. So far, 11.10 lakh MTs of rice has been utilized by generating 1360 lakh mandays. We have requested Government of India to continue this programme till June, 2002.
AGRICULTURE & COOPERATION
14. The State experienced prolonged dry spells between middle of June to 25th July and again between August and September. In order to compensate the area left unsown under paddy cultivation, growing of pulses, groundnut, and maize etc. were encouraged and seeds were distributed on 50% subsidy to a tune of Rs.19.26 crores. Reliefs were provided for raising paddy nurseries, rejuvenation of standing paddy crops and reclamation of sand cast area to a tune of Rs.3.73 crores. As an incentive, Rupees five crores have been sanctioned for providing seed on 50% subsidy for taking up the crop diversification. An area of 27,223 ha. has been covered with I.D. crops at a cost of Rs.2.62 crores. Going by the good response received to the subsidy scheme on green manuring seeds, now we propose to cover 5.76 lakh ha. by supplying green manure seeds at a subsidy of Rs.9.37 crores during the year 2002-03. Reducing the drudgery of the farmers and to carry out agricultural operations in an efficient way, an amount of Rupees seven crores has been provided in the budget for 2002-03 for farm machinery.
15. We have 1.29 lakh acres under mulberry cultivation in Andhra Pradesh. Several socio-economic studies have affirmed that the cost-benefit ratio of sericulture is the highest among comparable agricultural cash crops. It generates a steady stream of an average net income of Rs.45,000 annually in 4 to 5 splits from one acre of mulberry for its practitioner. The industry has an immense potential of generating the employment with a requirement of five persons throughout the year per acre both directly and indirectly. An important feature of sericulture industry in AP is the very high proportion of about 60% female labour involved in silkworm rearing and cocoon reeling, which are critical operations in the production cycle of silk. Its contribution to GSDP is estimated at 1.1 percent.
16. A budget provision of Rs. 446.87 crores is made during the year 2002-03 for Agriculture sector.
17. Horticulture is one of the growth engines for speedy development of A.P. with an area of 1.4 million ha. and production of 9.5 million tons of fruits and vegetables. Horticulture has made rapid strides in the last decade and Oil Palm, which was introduced in A.P. in 1991, occupies 30,000 ha. today and accounts for 55% of India’s total area and production. To encourage judicious use of water, drip facility has been provided to about 60,000 ha. spending Rs.76 crores. Cultivation of hybrid vegetables has picked up during the last three years, resulting in an additional production of 70,000 tons of vegetables. Establishment of Rythu Bazars for marketing these vegetables, setting up of two Bio-technology labs for production of tissue culture plants besides organizing “Horticultural Shows” for the benefit of farmers have been some of the significant features.
18. During the next few years, the Government will increase investments in Horticulture by encouraging Dry land Horticulture, provide drip irrigation facilities and establish Agri-Economic Zones for Post Harvest Management and Marketing of Horticultural produce in Chittoor, Hyderabad and Vijayawada.
19. A budget provision of Rs.48.78 crores is made for Horticulture for the year 2002-03.
20. The Andhra Pradesh Cooperative Societies Act, 1964 has been comprehensively amended to ensure accountability and transparency in the functioning of Cooperative Societies and to ensure active participation and involvement of the members in the activities of the Cooperative Societies. A Cabinet Sub Committee has been constituted to consider restructuring of the cooperative credit system to improve efficiency and provide better services to the farmers including reducing the interest rates on credit. Under Integrated Cooperative Development Project, 4 more districts are proposed to be covered in 2002-03 in addition to the 7 districts already covered. So far, Rs 44.24 crores have been spent under this scheme with NCDC assistance. The credit needs of the agriculture and rural sectors are substantially taken care of by APCOB, DCCBS and PACS, to the extent of about Rs.2,340 crores. Government have given a block guarantee of Rs.2,500 crores to the Cooperative institutions to avail refinance and assistance from NABARD, NCDC etc. Government have also sanctioned a scheme of interest rebate of 5% on Short Term & Long Term loans to the farmers due to adverse seasonal conditions this year.
21. Government have taken a number of measures to improve the infrastructure in market yards for procurement operations with an expenditure of Rs.23.74 crores. The A.P. State Warehousing Corporation has taken up a massive programme of construction of 20 lakh MTs of godowns under public private partnership. Rs.55.44 crores have been sanctioned for link roads during 2001-02 to enable the farmers to bring their produce to the market yards. Under Rythu Bandhu Pathakam, Rs.20.20 crores were given to the farmers as interest free loan against pledge of their stock. Rs.11.33 crores have been sanctioned as subsidy for construction of cold storage units. Under Technology Mission on cotton, facilities are being provided for marketing of cotton at an estimated cost of Rs.12.09 crores. The Market Committees have been undertaking sale of quality seeds, pesticides and fertilizers to farmers on no loss no profit basis.
22. 99 Rythu Bazars have been established with an expenditure of Rs.23.70 crores, which has helped the farmers to get remunerative prices for their produce. The average arrivals of vegetables in Rythu Bazars are about one lakh quintals per week and the sale value is Rs.846.16 lakhs.
23. Andhra Pradesh has a large livestock population and is rich in aqua-resources. Our state stands first in egg production, 2nd in meat production, and 7th in milk and fish production in the country. With a strong animal health infrastructure network and innovative initiatives, livestock health care was given an impetus by conducting 75,907 veterinary camps during Janmabhoomi, 2001-02 where about 1,73,000 sheep were dewormed and treatment provided to 60.56 lakh livestock. As a part of Livestock Breed Improvement Programme under the Gopala Mitra scheme launched in 2000, A.I. facility was provided to 5050 villages. Our Government is aiming at providing door-step A.I. facility to cover all the villages in the state within next one year and also develop mandal specific health action plans to contain and eradicate diseases giving priority to zoonotic diseases, diseases causing mortality and those affecting productivity in that order. In co-ordination with the concerned departments of Forests and Rural Development, fodder development also will be given a major thrust.
24. A budget provision of Rs.171.18 crores is made for Animal Husbandry sector for the year 2002-03.
25. In the Fisheries sector a target of 6.07 lakh tones production of fish will be achieved this year. The construction of fishing harbour at Machilipatnam, housing to fishermen, motorization of traditional crafts, establishment of common fishing centers and group accident insurance schemes taken up during previous years will be continued during 2002-03. In addition, Government will take up construction of 17 landing jetties, and 3 fishing harbours during 2002-03. Attempts will be made to improve the infrastructure to meet International standards for promoting and giving a boost to exports from this sector. Improved diagnostic facilities are proposed to be provided to the fishermen by re-vamping the existing institutions and training of personnel.
26. Government proposes to establish Agri-export zones for meat, poultry, milk and milk products at Hyderabad to cover neighbouring districts and Aqua-products at Visakapatnam to cover the entire coastal belt.
27. A budget provision of Rs.26.74 crores is made during 2002-03 for Fisheries sector.
28. To develop and strengthen the Irrigation infrastructure new investments will be focused in the backward and drought-prone areas of the State and the existing projects will be consolidated by completing the minimum rehabilitation programme through Farmers Organisations. Water Users Associations will be strengthened further and given the responsibility of operation and maintenance of all the irrigation systems and cost-recovery in their respective areas of operation.
29. For the fuller utilization of the waters of Godavari River the Godavari Waters Utilisation Authority has identified project viz., Godavari Lift Irrigation Scheme at Devadula, Yellampally, Dummugudem, Polavaram and Ichampally projects for priority implementation. Efforts are afoot for resolving outstanding inter-state and environment related issues pertaining to the proposed projects. Already the Central Government has been requested to declare the Ichampally and the Polavaram projects as national Projects to facilitate early clearance and requisite funding. A new organization of Chief Engineer was created exclusively for utilization of Godavari waters and for implementation of Sriramsagar Stage-II and the Flood Flow Canal projects. Efforts are also being made to obtain funding for the feasible medium irrigation schemes in Godavari basin from the Japan Bank for International Cooperation.
30. In case of new projects planned to utilize the waters of river Krishna, efforts will be made to seek their clearance and requisite funding by taking up their execution in phases initially within the allocated water. These are Handri-Neeva, Galeru Nagari, Nettampadu, Kalwakurthy, Veligonda and Bhima. Government will also strive to complete the Telugu Ganga Project and the balance works of A. Madhava Reddy Canal project at the earliest. It is also aimed to create a new ayacut for about 4 lakh acres during 2002-03 under SRSP Stage-I, SRBC, Somasila Project & AMRP.
31. Important ongoing projects planned for early completion are Srisailam Right Branch Canal, Kurnool Cuddapah Canal Modernisation, Somasila, Vamsadhara Stage-II and the Priyadarshni Jurala Project. Several new projects have also been identified to fully utilize the available water resources in the State. These include Yeleru Lift Irrigation Scheme, Nizamasagar Lift Irrigation Scheme, Lendi, Peddagadda, Thotapally and Tarakarama Lift irrigation scheme in Vizianagaram. Somasila Swarnamukhi Link Canal, Swarnamukhi barrage and Guru Raghavendra Swamy Lift Irrigation Scheme in Rayalaseema region. Efforts will also be made to secure inter-state agreement in respect of Lendi, Penganga, Janjhavati, Vamsadhara Stage-II and Bahuda Projects.
32. A major programme for the rehabilitation of more than 5000 old minor irrigation schemes has been taken up and 1150 schemes are completed. In the process, the gap ayacuts under the tanks have been brought under irrigation. All flood protection works including construction of flood banks on the rivers Krishna and Godavari are in the advance stage of completion to protect farmers in delta areas from recurring losses resulting from flood and cyclone.
33. A budget provision of Rs. 2091.65 crores is made during 2002-03 for Irrigation sector excluding contra interest.
ERADICATION OF POVERTY
34. Vision 2020 envisions a poverty free state and where every man, woman and child has access to not just basic minimum needs, but all the opportunities to lead a happy and fulfilling life.” Towards this vision, our Government have taken up a sustained poverty reduction strategy with a two-pronged approach with special emphasis upon the development of the backward regions of the state.
35. The First focuses on efficient natural resource management so as to enhance productivity of land and better use of water resources. Towards this goal, the Neeru Meeru program with special focus on watershed development is taken up to harmoniously use water, soil, forest and pasture resources. These and the DFID supported Andhra Pradesh Rural Livelihoods Program is expected to enhance agricultural productivity, wage labour and sustainable livelihoods for the poor and improve their income levels.
36. The Second involves a people centered empowerment approach through social mobilization of the poor women into Self Help Groups (DWCRA groups). Our Government is committed to the process of social and economic empowerment of women through the DWCRA groups. The Andhra Pradesh District Poverty Initiatives Project, “Velugu”, with its pro-poor social mobilization approach, is being implemented in 180 backward mandals of six districts with an objective to improve opportunities of the poorest of the poor and also reduce the incidence of the child labour and school drop out of girls. With an aim to cover another 500 backward mandals in the other districts, Government have formulated the “AP Rural Poverty Reduction Project.” This project has dual objectives of promoting economic mobility for the poor and to enhance their social protection by reducing vulnerability.
37. Due to sincere efforts put in by our Government under the guidance of our Chief Minister, better performance is indicated in reducing the poverty level in the state during the recent past. The percentage of population living below the poverty line in Andhra Pradesh is 15.77 percent as against the all India average of 26.1 percent.
38. Employment Generation is a priority of the Government. Accordingly, Employment Generation Mission has been created to coordinate and converge the activities of all concerned departments in employment generation, manpower planning and promote the investments across agriculture, industries and service sectors of the State economy to ensure the achievement of envisioned goals. To increase the skilled manpower levels, Government have established 1,072 professional education centers with an intake of 1,59,679. Training & Technology Development Centres established in all the 22 Rural Districts are functioning as a nodal agency to integrate all training programmes for the beneficiaries of various departments of State, Government of India, Banks, NGOs, Educational Institutions and user groups. 5.72 lakh beneficiaries are covered annually under the various self-employment schemes. Financial institutions disburse Rs.3,788 crores annually creating employment opportunities to 10.2 lakh beneficiaries. Wage-employment programmes like Watershed development, Joint Forest management, Neeru-Meeru, food for Work Programme etc., with an investment of Rs.1,032.56 crores are creating an employment of 1,429.26 lakh mandays. Our Government have taken many initiatives in creating centers of excellence like Apparel park, Knowledge park, Indian School of business, Leather parks, Biotechnology park, IT enabled services, and National Academy of Construction etc. As regards employment in Government, we have followed a consistent policy of need-based recruitment, particularly in departments that provide critical public services such as education, health and law and order.
39. Our Government is committed to accelerate the pace of the Universalisation of the elementary education and adult literacy and considers them to be central to the architecture of the state’s developmental strategy.
40. Providing good quality education to all children till they attain the age of fourteen and imparting literacy and creation of life long learning opportunities for youth and adults by 2005 are two components of the State’s ‘Education for All Mission’. Abolition of child labour and protection of child rights are now integrated into the State’s education policy as non-negotiable imperatives.
41. Towards this end, Government have increased access to schooling by adding 7,351 new primary schools and upgrading 4,352 primary schools into upper primary schools. To ensure adequate number of teachers in schools, 22,670 teachers were recruited, a quarter of them for High schools and 46,782 Vidya Volunteers engaged. Over two million adults have become literate in the first phase of “Akshara Sankranthi” literacy campaign.
42. The sincere efforts made by the Government under the visionary leadership of our Chief Minister with a specific target to improve the literacy rates have been reflected in the considerable improvement in the last decade i.e., 44% in 1991 to 61% in 2001, recording a 17% increase which is the highest decadal growth ever to be recorded in the state.
43. A budget provision of Rs.3482.37 crores is made for School Education uring the year2002-03.
44. Our Government policy is to make higher education relevant and purposeful. The year 2001-02 has witnessed strong growth of Higher Education sector in the State in terms of establishment of more educational institutions, increase in enrolment and also efforts to improve quality.
45. The aim of the Government is to ensure that there is atleast one Junior College in every Revenue Mandal to provide wider access to Higher Education. It is worth noting that 124 new Government Junior Colleges have been established during the year 2001-2002 in junior college-less mandals. In addition, 89 private junior colleges have been established in rural and backward areas with certain incentives. Further another 187 private unaided junior colleges have also been started in the State. Enrolment in the colleges has increased from 4.73 lakhs in the previous year to 5.2 lakhs in the current academic year. It is proposed to ensure that all the Junior College-less mandals would have atleast one junior college in the next two years.
46. There has also been good growth of unaided degree colleges as 82-degree colleges have been sanctioned during the year. Restructured courses have been introduced in micro-biology, bio-technology, travel and tourism in 134 Govt. Degree Colleges during the year to offer more job relevant courses to the students and efforts would be made to introduce restructured courses in the remaining Government Degree Colleges in the coming year. Government have also attached importance to the provision of proper infrastructure in the Government Degree Colleges.
47. MS (IT) has been launched by a consortium by Universities in the State and Carnegie Mellon University of USA. A two year M.Sc. (Information Science) has also been introduced in 73 degree colleges in the State with an intake of 2,920 students.
48. During the academic year 2001-02, 174 engineering colleges with 46,090 seats, 236 MCA Colleges with an intake of 10,075, 143 Colleges offering MBA courses with an intake of 7,274 and 26 Pharmacy colleges including two new Pharmacy Colleges with 1,390 seats are functioning in the state.
49. With a view to improve the quality of teaching learning process, Government have launched “Mana T.V.” through which educational programmes are being telecast for the benefit of students of the junior colleges, degree colleges and polytechnics. Further, the engineering colleges are setting up a network for providing video conferencing facility for the presentation of lectures on important subjects by eminent teachers.
50.A budget provision of Rs.967.06 crores is made during the year 2002-03 for the Higher Education.
51. Our Government provides Health care through a vast network of Health Care Institutions in the State – 10,568 sub-Centers, 1,386 PHCs. 125 Civil Hospitals in Primary Health Sector, 224 Hospitals in Secondary and 34 Medical Teaching Institutions where specialized care is provided. The overall bed strength has been enhanced to 35,154. 10 Primary Health Centres have been upgraded to 30 bedded Community Health Centres. Under the A.P. First Referral Health Systems Project, additional facilities are being created in 160 Hospitals at a cost of Rs.608 crores. 159 Hospitals have already been completed adding 5000 beds. Under A.P. Economic Restructuring Project, 589 buildings have been completed out of 627 taken up for construction and remaining 38 PHCs. will be completed soon.
52. To improve Medical Education in the State, Government have sanctioned additional 270 seats in the Medical Colleges. 5 Medical and 5 Dental Colleges have been established in the Private Sector. Besides this 17 Medical and 32 Dental Colleges have also been sanctioned in the Private Sector. Permission has been given for the establishment of 95 Para-medical institutions in the Private Sector.
53. There has been a remarkable decline in the incidence of communicable diseases during the year. Malaria cases declined from 80,557 in 2000 to 41,770 in 2001 (-48%), G.E. from 7,614 in 2000 to 1368 in 2001 (-82%) and J.E. from 343 in 2000 to 35 in 2001 (-90%). 26 voluntary counseling & testing centers have been opened in Medical Colleges & District Hospitals, which are extending their services to all the 56 Area Hospitals. To prevent transmission from Mother to Child, all necessary facilities for counseling, testing and administration of required drugs free of cost will be done from April 2002 to benefit 32,000 HIV positive pregnant women.
54. Our state has achieved remarkable success in the area of population control. This is eflected in the findings of Census 2001. While the decadal growth rate of population declined for India from 23.8% in 1981 to 1991 to 21.3% in 1991-2001, the decline was very steep for Andhra Pradesh from 24.3% to 13.8%. This was possible both due to the concerted efforts made by the Government and the widespread acceptance of the small family norm by the people of Andhra Pradesh. As a result the number of family planning operations crossed 8 lakhs in 2000-01 and we are likely to have similar results in 2001-02.
55. Along with the services provided to the eligible couples, Government aims at providing quality services for mother and Child. Hence, 400 Round the clock PHCs have been established to attend to delivery cases. Besides, Sukhibhava funds at the rate of Rs. 300 have been made available for 1.3 lakhs women below poverty line to encourage institutional delivery at Government hospitals. Routine immunization services have been strengthened and Hepatitis-B vaccine has been introduced in the six districts of Chittoor, Cuddapah, Ananthapur, Kurnool, Mahboobnagar and Guntur. The vaccine is administered to newborn infants as part of the immunization programme. Janani teams have been constituted in every village to ensure participation of the community and the sarpanch in the family welfare activities.
56. Many initiatives have been taken up by AIDS Control Society like Health Awareness Campaign, STD clinics, Inter-sectoral collaborations and Promotion of use of condoms for prevention of AIDS.
57. A budget provision of Rs.1548.57 crores is made during 2002-03 for Health sector.
58. Government is committed towards the welfare of people belonging to SC communities. At present 2,210 hostels are being maintained having strength of 2,46,000 boarders , 47,587 children are being given coaching under Back to School programme, 2,04,000 children are getting post-matric scholarships, 4,20,000 students are given pre-matric scholarships, 2,400 bright SC students are admitted in best available schools, 19 SC candidates have been selected for Central services out of 26 appeared for VIVA after getting coaching in A.P.study circle during last year. 30,819 bonded labourers have been identified and rehabilitated, 10,52,444 house sites have been distributed from November 1998 till date.
59. The recommendations of Justice Punnayya Commission together with the recommendations of the Cabinet Sub-Committee were approved and Government launched a campaign for eradication of untouchability and prevention of atrocities against SCs & STs from 1st to 3rd November, 2001.
60. Under A.P.S.W.R.E.I.S. there are 230 educational institutions, 92 for Boys and 138 for girls, with a sanctioned strength of, 1,00,860 students. Apart from 17 long term Bridge Course Residential Schools which are functioning @ one each in Non-DPIP districts, 24 Schools were established under World Bank aided “Velugu” programme in 6 DPIP Districts. This society is running 2 exclusive IIT/JEE coaching centers and 14 EAMCET centres. The success rate of students during this year in SSC and Intermediate was 86.92% and 64.62% respectively, which is much higher than the State average.
61. The A.P.S.C Co-operative Finance Corporation have prepared an action plan for the year 2002-03 to assist 1,00,959 SC families with a total outlay of Rs.170.20 crores under various welfare and developmental schemes.
62. A budget provision of Rs.642.75 crores is made during 2002-03 for Social Welfare.
63. Government is striving hard to improve the education, health and the economic conditions of the Tribals, and to develop infrastructure like roads, drinking water, electricity in the interior agency areas. A.P.Tribal Welfare Residential Educational Institution Society (Gurukulam) with 63 institutions is determined to provide quality education to the Tribals. They have achieved spectacular results of 82.23 percent pass in the SSC exams. In order to improve the health conditions in the tribal areas, Government have supplied jeep cum ambulances to all the PHCs and have also appointed 8,500 young tribal women as Community Health Workers to work as bridge between Village and Public Health Centres. Government have started a comprehensive programme “Chitanyam” for economic upliftment of the ST families. During the year, a separate ITDA for Yanadis has been started to take care of the dispersed groups living in Nellore, Chittoor and Prakasam District of the State.
64. A budget provision of Rs.412.52 crores is made during 2002-03 for Tribal Welfare.
Backward Classes Welfare
65. Concerted and committed efforts are being made by Government for upliftment of Backward Classes by providing Educational facilities through Hostels and Residential Schools for Students at Pre-metric level by offering Scholarships and organizing Study Circles and ‘Merugu’ Programme for Post-Matric Students. During the current year, it is proposed to cover 1,39,000 students in hostels and providing Scholarship assistance to 2,20,000 Students. Economic Support Schemes are proposed by way of Margin Money assistance and Micro Finance for 12,000 beneficiaries, Swarnima Programme for 10,000 beneficiaries, “Washfed” Programme for 1,650 beneficiaries and “Nayeefed” Programme for 2,500 beneficiaries. To reduce the hardship of Artisans, it is proposed to continue Adarana Programme with revised guidelines, for which a budget provision of Rs. 25 crores has been made for the year 2002-03.
66. A budget provision of Rs.256.86 crores is made for the year 2002-03 for B. C. Welfare.
67. Andhra Pradesh is having 11% of its population covered by minority communities. During the past five years various developmental activities have created confidence among minorities and also improved the quality of their socio-economic and educational activities. In a short span of time, the activities of the Minorities Finance Corporation have gone up with a turnover of Rs.70 crores. It has provided benefit in manifold activities with objectives to upgrade skills and increase in income etc.
68. Statutory powers to the Andhra Pradesh State Minorities Commission, Establishment of A P State Wakf Tribunal and District Minority Welfare Offices have provided protection and cultural identity and helped in removing the sense of discrimination among minorities. The Andhra Pradesh Haj House, arrangements to the Haj pilgrims from Hyderabad, Urdu Ghar-cum-shadi Khanas at 340 places in the state, steps towards community development have made the state as a model, in providing benefits exclusively for the minorities.
69. A budget provision of Rs.36.61 crores is made for the year 2002-03 for Minorities Welfare.
Women Development and Child Welfare
70. Number of welfare schemes for the Women and Children have been implemented like Girl Child Protection Scheme, Child Labour Rehabilitation, Balika Samrudhi Yozana, formation of self help groups and Integrated Child Development Services in 251 Projects and PMGY etc. Government is running number of Child Welfare Institutions like Shishuvihars, Children Homes, Collegiate Homes, Women Welfare Centres and Women Welfare Institutions like Home for Aged Women, Working Women Hostels, Rescue Homes, State Homes, Service Homes which provide necessary facilities like Food, Clothes, Education and Training programmes. Apart from the above, the AP Women Co-operative Finance Corporation Limited is financing for the schemes meant for the women empowerment.
71. A budget provision of Rs.394.73 crores is made for the year 2002-03 for Women Development and Child Welfare.
72. Andhra Pradesh is the first State in the country to have a separate Department for Disabled Welfare. We have introduced Welfare Programme for disabled persons “CHEYUTHA” on mass Scale. Government have sanctioned Rs. 25 lakhs for issue of 2,50,000 Multipurpose identity cards to the Disabled persons.
73. A budget provision of Rs.21.68 crores is made for the year 2002-03 for Disabled Welfare.
74. Government is committed towards welfare of the industrial and non-industrial workers. A.P. Labour Welfare Fund Act enables to promote various labour welfare activities including scholarships, medical aid and emergent economic ameliorative relief etc.
75. In collaboration with National Safety Council, Andhra Pradesh Chapter organized 60 training programmes to promote safety awareness. In order to simplify procedures a system of self-certification has been introduced in information technology industry, biotechnology establishments, export-oriented units and tourism based industries under various labour laws.
76. A Budget provision of Rs.74.03 crores is made for the year 2002-03 for Labour and Employment Welfare.
FOOD & CIVIL SUPPLIES
77. Food security and access to food at affordable price is one of the basic objectives of the Government. This is being achieved by ensuring uninterrupted supply of essential commodities through a vast network of 40,600 Fair Price Shops. In order to enhance the viability of Fair Price Shops and also to protect the interest of common consumers, a novel scheme called ‘Sarvapriya’ is being introduced. Various consumer items of daily use will be supplied to common consumers at less than the market price.
78. Protecting the interest of farmers is of paramount importance for our economy. In order to ensure remunerative price for paddy, a massive minimum support price operation has been launched during the present kharif and it has been ensured that farmers get remunerative price for the paddy. More than 35 lakh tonnes of paddy has been procured under Minimum Support Operation by the millers and State Agencies. Government is determined to continue with Minimum Support Price operation for paddy during ensuing Rabi also. I am happy to inform that an all time record procurement of 71 lakh tonnes of rice was achieved during the crop year 2000-01. Government have made plans to procure 80 lakh tonnes of rice during the current crop year. This has proved a major instrument in ensuring remunerative price for paddy.
79. Government is committed to protect the consumer rights. In order to achieve this objective, it is proposed to strengthen the infrastructure of the consumer fora in the State, create consumer awareness through massive and sustained campaign on consumer rights through consumer councils and by involving Non-Governmental organisations. The Legal Metrology wing is being modernised to protect the interest of the consumers against any possible mal-practices.
80. Government have been distributing LPG connections to BPL women under Deepam Scheme with a view to remove drudgery in cooking and improve their health and overall quality of life. So far 14.80 lakh LPG connections have been released and it is planned to release further 15.20 lakh connections during the next few years.
81. A budget provision of Rs.591.89 crores is made for the year 2002-03 for Food & Civil Supplies sector.
82. Andhra Pradesh State stands First in the country in providing permanent shelter to the poor. Upto December’2001, the State has facilitated construction of 39,61,981 houses in the Rural and Urban areas. Considering the impressive achievements in providing housing, the HUDCO has awarded an outstanding performance Award to the APSHC for the year 2000-01 for the fifth year in succession. In addition, I.A.Y programme, Prime Minister Grameena Yojana (PMGY) and Valmiki Ambedkar Awaas Yojana (VAMBAY) have also been proposed for implementation in the State. The Unit cost under Valmiki Ambedkar Yojana varies, from Rs. 40,000 to Rs. 60,000 with Government of India subsidy at 50% of the cost and remaining 50% will be loan.
83. 69,398 houses have been constructed by AP Housing Board by investing an amount of Rs. 450 crores. A new scheme for construction of 1000 houses have been taken up. An amount of Rs. 70 crores have been collected towards recovery of instalments so to further invest in the proposed programmes.
84. A budget provision of Rs. 522.54 crores is made for the year 2002-03 for Housing.
PANCHAYAT RAJ AND RURAL DEVELOPMENT
Strengthening of Local Bodies
85. Under 73rd Constitutional Amendment, the local self-government is given the pride a place. Government have already decided on devolution of powers with reference to certain subjects like Agriculture, Animal Husbandry, Education, Sanitation, Water Supply and Fisheries in terms of funds, functions and functionaries. Besides this, the Engineering Wing of Panchayat Raj Department will also be placed under the administrative control of Zilla Parishads. District planning committees are being constituted to replace District Development Review Committees.
86. Our Government have taken an innovative decision of creating the post of a Secretary for each Gram Panchayat for coordinating the functions of various departments at grass root level. The “Panchayat Secretary” will provide necessary assistance to political functionary in the matter of Gram Panchayat administration. This arrangement has come into force with effect from first January, 2002.
87. Neeru - Meeru has resulted in improved water conservation and consequent improvement in the drinking water availability. Despite deficient rainfall, rise in ground water level ranging between 0.19 to 6.34 meters during May to December, 2000 have been registered in all districts. The number of seasonal bore-wells getting dried up have reduced from 17,627 to 12,605. Number of habitations requiring drinking water transportation has reduced from 1,083 to 740 and number of defunct water supply schemes due to source failure has come down from 153 to 109.
88. Under 10 year perspective watershed development plan aiming at developing 100 lakh hectares from 1997 to 2007, 31.60 lakh hectares are under treatment by taking up 7,135 watershed projects. During 2002-03, an amount of Rs.250 crores is expected to be spent under different watershed schemes.
Women Self-Help Groups
89. The Government have taken “Self Help Groups” as a tool to eradicate poverty. It is contemplated to bring every woman belonging to poorer section of the society into the fold of self-help groups. Government is taking a number of initiatives in training and capacity building, technology and market support to strengthen and sustain self-help groups. Andhra Pradesh has pride of place in promoting 4.12 lakh self help groups covering 55 lakh women from poor households.
Rural Water Supply
90. 3,900 habitations are being targeted for coverage with safe drinking water. Apart from Government of India funds under ARWS, the State is spending its own funds under MNP and also tapping assistance from NABARD for rural water supply schemes. It is programmed to cover all the habitations in the State to cover the whole population under Rural Water Supply schemes as per the norms, by 2005. For this purpose, apart from enhancing the assistance from NABARD, it is proposed to tap funds from other external agencies also.
91. Under Rural Sanitation Programme, nearly 15 lakh below poverty line families have been provided with individual latrines since its inception. Total Sanitation Campaign has been launched in 10 districts of the State to cover all below poverty line families. It is proposed to extend the programme to other districts also in the next two years to achieve full coverage of population below poverty line. It is also proposed to approach HUDCO for getting loans for construction of super-structures of the latrines.
92. A budget provision of Rs.2541.30 crores is made for the year 2002-03 for Panchayat Raj & Rural Development sector.
93. Rapid urbanization has become a major challenge to our development planning process. The urban areas of the State are in need of large scale investment in infrastructure particularly for rehabilitation of the poorer pockets and slum areas. In that direction, the administration of municipal sector has been tightened during the current year for revenue improvement, which is expected to yield nearly 30% more revenue compared to the previous year in the Municipalities.
94. The DFID assisted Urban Services for the Poor Project has been launched in 42 Class I towns of the State and in the next financial year, an investment plan of Rs. 175 crores is programmed under this project. For improving the drinking water supply, the third phase of water supply programme has been launched in 39 towns with an outlay of Rs 507 crores. As Hon’ble Members are aware, with this phase we will be covering 75 towns with adequate supply of drinking water. The remaining Municipalities will be covered in phases for which necessary planning is already underway.
95. For improving the supply of drinking water to Hyderabad City, the modified Krishna Project to draw water from Akkampally reservoir with an outlay of Rs 875 crores is being planned for completion in three years. Metro Water Board has taken steps for early financial closure of this project. For cleaning the Krishna River Basin, the Pollution abatement Scheme of River Moosi is being started with an investment of Rs.295 crores. Similarly, the main phase of the Netherland Assisted Green Belt Project is being started for the eco-conservation of Hyderabad and its surrounding areas.
96. The Multi Modal Transport System for Hyderabad City for providing a rapid transit system has already been started. In the next financial year, a significant part of the project will be completed, allowing us to fulfill the promise to the people for providing an affordable mass transportation system.
97. A budget provision of Rs.728.07 crores is made for the year 2002-03 to provide more facilities in Urban areas.
Forestry & Environment Protection
98. Currently, 25% of the State’s forest area is being managed by 13.6 lakh rural poor through 6726 VSS. 1.85 lakh Ha. of degraded forest has been treated during the year up to the end of January, 2002.
99. Under Clean and Green program and under Innovative extension methods like “Warangal Vanapremi”, 28 crore seedlings have been planted during the year. An exquisite botanical garden has been developed at Kothaguda. Andhra Pradesh Forest Academy has been set up at Dullapally. ‘Neeru Meeru’ and ‘Food For Work’ programmes have given special boost to forestry operations.
100. The functioning of the Common Effluent Treatment Plants with the active association of the stakeholders has helped in controlling industrial pollution. The State also stands first in the Country in having started two international standard common facilities for treating and incinerating Bio-medical Waste through private sector enterprises. Strict enforcement by AP Pollution Control Board has helped in the reduction of industrial water pollution load in the Musi and Nakkavagu sub-basins, by 40% in the last 18 months.
101. A budget provision of Rs.265.25 crores is made for the year 2002-03 for the Environment, Forestry and Science & technology sector.
102. Andhra Pradesh has emerged as one of the major destinations for Foreign Direct Investments in India under the dynamic leadership of our Chief Minister. During the year 2001, the state has received 18 Foreign Direct Investment proposals with an outlay of Rs. 4,228.50 crores. Several steps are being taken to attract Foreign Direct Investments in the thrust areas identified such as Bio-technology, IT enabled services, Pharmaceuticals, Tourism, Finance and Insurance etc.
103. Government intends to improve the share of industry in the Net State Domestic Product (NSDP) from the present level of about 19% to at least 25% over the next 5 years. Government proposes to strengthen this sector by continuing reform measures particularly, in the power, roads, ports sectors, restructuring the State Level Public Enterprises and further streamlining the ‘Single Window’ project clearance system.
104. Specialised Industrial Parks are being developed to promote the specific sectors. Apparel Park at Gundlapochampally, Gems and jewellery park at Banjara Hills, Export Promotion Industrial Park at Pashamylaram, Export Processing Zone at Visakhapatnam, Special Economic Zone between Kakinada and Visakhapatnam and Industrial Estate for ALEAP at Gajularamaram. A leather park is under consideration in and around Hyderabad. Government have identified the Biotech sector as one of the “Engine of Growth”. Government will leverage the existing strengths of the State for rapid commercialization of Biotechnology to produce innovative biotech products and services in a wide range of areas
Mines & Geology
105. The Mining Sector which provides basic raw material for industrial development witnessed steady growth during the year. There was a record disposal of 2,484 mineral concession applications resulting in additional areas being brought under lease. Mineral Revenue also registered an impressive growth of 28.44% over the previous year. Having regard to the need to improve infrastructural facilities, the State Government has allocated 35% of the minor mineral revenue for road development in mining areas.
106. The Sugar Industry is a major industry which has a presence in 13 Districts covering approximately 4,00,000 farmers. During the year 2000-01 season, 2.18 lakhs hectares was brought under cane. Government recorded an average recovery of 10.36% as compared to 10.08% in the previous year. It is estimated that there will be stabilization in the area under cane.
Handlooms and Textiles
107. The Government of India have introduced an integrated and comprehensive scheme viz., Deendayal Hathkarga Protsahan Yojana for the development of Handloom weavers, both within and outside Cooperative fold . This scheme is funded by the State and Central Governments in 50:50 ratio. During the year an amount of Rs.740.81 lakhs under State Share and Rs.432.64 lakhs under Central Share were released. Proposal for revamping and restructuring of APCO have been furnished to Government of India, which is under active consideration.
108. A budget provision of Rs.237.61 crores is made the year 2002-03 for Industries sector. Public Enterprises
109. Government have taken up privatization in phases. 11 enterprises out of 12 enterprises have been privatized / restructured / wound up during Phase-I of Public Enterprises Reforms. It is also decided now to implement Phase-II Public Enterprises reforms from 2002-03.
110. To minimize the adverse impact of redundancy on workers, Government have devised the Social Safety Net Programme with two components i.e., voluntary retirement scheme and counseling and retraining. So far an amount of Rs.194.58 crores was given as VRS to 15,228 employees, 4,249 employees have been retrained and 3,280 employees have been counseled.
111. A budget provision of Rs.80.72 crores is made for the year 2002-03 for Public Enterprises.
112. Janmabhoomi was launched in January 1997 as a people centered development process with the twin objectives of providing good governance and ensuring people's participation in the over all development of the state. Gram Sabhas are held twice in a year in January and June in every Gram Panchayat and Municipal Wards specially focusing on the issues and problems relating to weaker sections, farmers, women and children.1.25 lakh Community Works have been grounded costing Rs.1,819.27 crores. 52.01 lakhs Individual Family Needs have been redressed out of 59.79 lakhs received and 2.30 lakhs Non-Financial Community Needs have been redressed out of 2.60 lakhs received.
Clean & Green
113. The Andhra Pradesh Clean and Green Campaign was launched in September 1998 aimed at creating awareness among the people on health, hygiene and other environmental issues. So far, forty rounds of the campaign activities have been successfully implemented with the active participation of the students, youth, self-help groups, officials and non-officials. Every third Saturday of the month has been declared as Clean and Green Day to implement the campaign activities.
YOUTH ADVANCEMENT, TOURISM & CULTURE
114. The main motto of the Chief Minister’s Employment of Youth (CMEY) Programme is generation of employment among educated/uneducated Youth of the State. For implementation of the programme, 37,885 Youth groups have been formed throughout the State. Several latest technologies, relating to production and maintenance have been identified by Swami Ramananda Tirtha Rural Institute (SRTRI) for implementation. The services of experienced agencies like A.P. Productivity Council etc., will be obtained to prepare Project Profiles so as to get finance and monitoring of the projects undertaken by the Youth Groups.
115. The implementation of the sports policy of our state has undoubtedly succeeded in giving fillip to sports and games in the State. The performance of Smt. Karanam Malleswari at Sydney Olympics and Sri P.Gopichand at All England Badminton Championship must be mentioned in this connection. The construction of sports infrastructure in connection with National Games, 2002 will perhaps remain as the most important initiative of the State in building up sports culture in the State. The performance of sports persons at the 3lst National Games at Punjab have reflected the sports awakening in the State. The State will surely gear up in all possible ways to improve its ‘medal tally’ when it hosts the 32nd edition of National Games, 2002 in Hyderabad.
116. A budget provision of Rs.110.56 crores is made for the year 2002-03 for Youth Services and Sports.
117. A.P.Vision-2020 document envisages making Andhra Pradesh the ultimate Destination State in the world. “Bring the world to A.P. and take A.P. to the World” is a guiding spirit to achieve this goal. It is also the policy of the Government to enlist private participation in the tourism infrastructure projects of International Standards.
118. During the last one year as many as 23 projects with private investment of Rs.332 crores have been approved and the works are at various stages. Another 17 projects with a private investment of Rs.372 crores are at the final stages of processing. The Government funded schemes costing Rs.82 crores are also at various stages of progress. These projects are spread over at Hyderabad, Visakhapatnam, Tirupathi, Vijayawada, Warangal and Khammam and include major projects like Imax Theatre, Multiplexes, Beach Resorts, Golf Course, Water related projects, Family Entertainment Centres, Amusement Parks, Lakes with water sports.
119. In addition, the A.P. Tourism Development Corporation is also organizing conducted tours in the identified circuits. To meet the growing demand for qualified professionals in the tourism sector, a National Institute of Hospitality and Tourism Management is also being set up at Hyderabad and another similar Institute at Visakhapatnam.
120. A budget provision of Rs. 47.09 crores is made for the year 2002-03 for Tourism Development.
121. Government have taken extraordinary measures to facilitate infrastructure development in the State. In October 2001, it enacted “Andhra Pradesh Infrastructure Development Enabling Act” with a view to enable private sector investment in infrastructure projects. This Act is a unique statue, which helps implementation of projects in a speedy and transparent manner. Government have identified 31 Mega Infrastructure Projects and constituted an Infrastructure Authority headed by the Chief Secretary to guide in the implementation of these projects.
122. The R&B Department maintains about 65,000 Kms of road network. Of these, in the year 2001-02, 523 Kms of roads were upgraded to WBM & 320 Kms to BT under NABARD, 3007 Kms of state roads were renewed and 295 bridges & culverts constructed under the State Maintenance Programme, 93 Kms improved under APRDC and another 1504 Kms improved with external aid. 33 ROBs/RUBs are in various stages of construction. The National Highway network in the State has received an impetus with greater support from Government of India. For four laning of NH-5 and NH-7 Government is rendering maximum support. Performance based maintenance contract system was introduced in 4 districts.
123. In the coming year 2002-03, 1280 Kms of road network will be improved & 35 bridges constructed under NABARD, 5750 Kms of State roads will be renewed and the works under External Aid Programme completed. Special focus would be given to CRF works and ROB/RUBs. As a part of reforms for maintenance of roads, the performance based maintenance contracts would be extended to other districts in a phased manner.
124. The levy of tolls will be extended to other important roads. Widening and strengthening of state roads would be taken up to meet the Vision 2020 targets. In order to bring greater investment in the road sector, Government is continuing to attract private investment under BOT.
125. The Computerisation of three R.T.A. Offices at Secunderabad, Vijayawada and Chittoor have proved a success, 16 more offices have been completed during 2001-02. The remaining R.T.O. offices and Checkposts will be completely computerized by 2002-03. A website is also established. 287 private pollution testing centers have been licensed in the State to issue pollution control certificates to tackle the problem of vehicular pollution. To arrest the possible misuse of documents like permits, registration certificates and driving licenses, holograms are being affixed on every document.
126. The APSRTC, which operates about 19,000 buses had estimated Revenue of Rs.2,862.89 crores in the year 2001-02. During 2002-03, the projected revenue is estimated at Rs.2,878.13 crores. APSRTC is launching a multi-pronged action to improve the overall performance by stricter enforcement of laws to curb illegal operations, to achieve inner efficiencies by reducing expenditure, to optimise fleet utilisation and to introduce innovative methods to meet the unmet demand in the market. The overall marketing strategy will be worked out for this purpose. APSRTC is providing various concessions for which the Government has made a provision of Rs.100 crores in the year 2002-03 towards reimbursement. Ports
127. There are two intermediate and ten minor ports in the State. Kakinada deep water port, Vodarevu and Krishnapatnam ports have been privatised for development . Development of green field port at Gangavaram is being processed expeditiously and the bidding process for the same would be completed in 2002-03.
128. Government is actively pursuing for construction of a new International airport at Shamshabad. The development of Vijayawada and Visakhapatnam airports and the early completion of work relating to the expansion of the existing runway in Begumpet Airport shall be actively pursued by the Government.
129. A budget provision of Rs.1665.72 crores is made for the year 2002-03 under TR & B sector.
130. In view of the importance of power sector on the economic development and fiscal stability of the State, the performance of power sector is being monitored very closely to achieve a turn around in the operational and financial performance in a time bound manner. The Reforms and Restructuring of power sector have started showing significant results. With the commissioning of NTPC Simhadri Power Project, BSES Andhra Power Project and 3rd Unit (150 MW) of Srisailam Left Bank Power House shortly, the power availability in the State is expected to be satisfactory by the middle of 2002. The Plant Load Factor of APGENCO stations increased from 83.2% in 1999-2000 to 85.1% in 2000-01 compared to all India level of 67% to 69%. The second tariff order effective from 01-04-2001 for the year 2001-02 was approved by APERC by re-introducing 6 slabs in place of 4 slabs for domestic category.
131. Comprehensive customer care centers have been established in different parts of the twin cities. It is proposed to extend similar centers all over the State in a phased manner. Spot billing and passbooks introduced in the twin cities have been widely appreciated by the consumers and it is proposed to extend similar facility throughout the State. E-seva facility for payment of bills is made available in the twin cities. It is proposed to take up electrification of over 15,000 unelectrified hamlets and habitations in a three year programme and the work of regularization of unauthorized agriculture consumers is in progress. Government have maintained 9 hour quality power supply to farm sector at satisfactory voltages. It is the aim of Government to pursue initiatives for efficiency and to provide quality supply to all categories of consumers.
132. A budget provision of Rs.2564 crores for the year 2002-03 is made for Energy sector.
133. Government have been using Information Technology for the overall development of the State especially for providing employment to its rich technical manpower and for providing good Governance. The software exports registered during 2000-01 were Rs. 2007 crores, an increase of 90%. The exports during the current year are expected to cross Rs.2500 crores despite the discouraging trend in the Industry. An international IT exhibition called GITEX has been organized in Hyderabad successfully in January 2002 as a part of the promotional efforts of the State. GITEX, Hyderabad is expected to become a major international IT exhibition, in the years to come.
134. Government announced the IT Hardware Policy in August 2001 extending attractive incentives to trigger the growth. IT Enabled Service sector has the greatest potential to grow in an environment like Andhra Pradesh, endowed with technically qualified, and English speaking manpower in abundance. Government announced the ITES policy in January 2002 specifying the incentives for the growth and sustenance of this sector. Prime Minister of United Kingdom, Premier of the State Council of Peoples Republic of China and the President of Mauritius visited and saw the IT initiatives in addition to 50 other delegations from several countries.
135. STPI established its earth station at Visakhapatnam besides Hyderabad. Earth stations in Vijayawada, Tirupati and Warangal will be operational shortly. Major networks of Optical Fiber Cables have been laid throughout the length and breadth of the state by the Telecom Companies like, Reliance, Tata and Bharati taking advantage of the conducive policy environment of the state government in this area. These initiatives will take Internet to the rural areas in the ensuing financial year.
136. The APNet Project is ready for launch on a pilot basis with the use of Ku Band transponder and with the assistance of ISRO. It is aimed at taking the benefits of IT to rural areas, for applications like distance education, telemedicine, e-Governance, self-help groups, cooperative sector etc..
137. The International Institute of Information Technology, in its 4th year of operation has been conferred the status of a deemed university and is continuing its major strides in IT education and research. An innovative Post Graduate programme (MSIT) involving multiple universities has also been successfully launched in three centers, and it is being extended. A major initiative for computerization of 1000 schools is in the offing.
138. A budget provision of Rs. 54.83 crores is made for the year 2002-03 for IT sector.
139. The e-Seva services presently rendered through 16 centres in the Twin cities will extend to around 50 more centres during 2002. Fully Automated Services of the Transport Department (FAST), under pilot implementation will be replicated at 34 more locations in the State. SKIMS project will be launched during the ensuing year for effective knowledge management in Secretariat and to create a generic solution for easy and effective decision-making. This product can eventually be used in other offices in the State. An e-Governance Road Map is also being drawn up for a more systematic and sustained development of e-governance projects. The state is making impressive strides in the use of IT in the governance process as promised by our Chief Minister to help citizens, business and employees to become more productive cutting down on time and effort.
140. Honouring our commitment to give SMART Government to the people of Andhra Pradesh we have set up a task force on Good Governance. A center for Good Governance is also set up at Hyderabad in collaboration with DFID, Government of UK, to guide and coordinate the reform activities for implementation. Citizens charters have been prepared to ensure declared level of service delivery. Government is committed to bring out a legislation i.e. “Right to Information Act” to empower the citizens with the statutory right to access information from Government Departments.
141. Capacity building through training has been translated well into a reality by Dr. MCR HRD Institute and by District Training Centres. An MOU has been signed with the International Labour Organizations for taking up sensitization of public functionaries on Child-Labour and a massive capacity building programme, implementation of which has been initiated. A HUDCO chair has been established in the Institute to focus on urban related issues and has started functioning.
Law and Order
142. Government recognizes the critical importance of peace and harmony in the developmental process, which has been reiterated in the Vision- 2020 document. Every effort has been made to modernize the Police and equip them with the most effective and modern equipment, weaponry and communications etc., to help them to achieve the task of maintaining law and order and prevention and detection of crime. Government is fully prepared to deal with any situation created by factionalists, extremists, communalists, terrorists and other such anti-social elements.
143. The final Accounts of 2000-01 reveal a revenue deficit of Rs.3595.12 crores. After taking into account the transactions on capital as well as public accounts, the year closed with a positive balance of Rs.35.73 crores.
Revised Estimates 2001-02
144. Transactions as per the revised estimates of 2001-02 indicate a revenue deficit of Rs.2992.91 crores against the budgeted revenue deficit of Rs.3887.03 crores. The overall transactions of the year are estimated to result in a net deficit of Rs.54.11 crores. After taking into account the opening cash balance of Rs.35.73 crores, the year-end balance is estimated to be negative Rs.18.38 crores.
145. The year 2002-03 is going to be the first year of the Tenth Five Year Plan. The Annual Plan for the year 2002-03 has been programmed with an outlay of Rs.10082.70 crores as against Rs.8991.02 crores for 2001-02, which amounts to an increase of 12.14 percent. The revised estimates for 2001-02 for the Annual Plan are now Rs.8329.44 crores. Against the revised estimates, increase in the next year’s Plan outlay will be 21.05 percent.
#Budget Estimates 2002-03
146. During the financial year 2002-03, we have programmed for an expenditure of Rs.28120.50 crores under Non-Plan and Rs.11299.50 crores under Plan. This will result in a revenue deficit of Rs.2481.83 crores which would be 1.5 per cent of GSDP. Fiscal deficit is estimated to be Rs.7499.31 crores which would be 4.5 per cent of GSDP. After taking into account the overall transactions of the year, we will have a net deficit of Rs.62.30 crores. With the negative opening balance of Rs.18.38 crores, financial year is expected to end with a negative balance of Rs.85.68 crores.
147. With these words, I now commend the Budget to the House for approval.
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