SPEECH OF SRI K. ROSAIAH
HONOURABLE FINANCE MINISTER WHILE
PRESENTING THE BUDGET FOR THE YEAR
2005-06 TO THE ANDHRA PRADESH LEGISLATIVE ASSEMBLY
ON 18th Feb 2005.
Honourable Speaker Sir and Honourable Members,
1. I rise to present the Budget of the Government of Andhra Pradesh for the year 2005-06.
Honourable members are aware that Tsunami, the unprecedented calamity that struck South East Asia and most parts of South India, did not spare our State also.Although theeconomic impact is not severe in our State compared to other states in the Country, it took a toll of 105 lives besides causing extensive damage to properties along the coastline. The most affected families belong to fishermen community. To mitigate the sufferings of the affected people, the Government had swung into immediate action and took up relief and rehabilitation measures. I am sure that this august House joins me in expressing our gratitude to Government of India for their timely release of Rs. 100 crores as grant, which has enabled us to take up rehabilitation works at adesired pace for those families affected by the tragedy
2. Honourable members are aware that Tsunami, the unprecedented calamity that struck South East Asia and most parts of South India, did not spare our State also. Although the economic impact is not severe in our State compared to other states in the Country, it took a toll of 105 lives besides causing extensive damage to properties along the coastline. The most affected families belong to fishermen community. To mitigate the sufferings of the affected people, the Government had swung into immediate action and took up relief and rehabilitation measures.
I am sure that this august House joins me in expressing our gratitude to Government of India for their timely release of Rs. 100 crores as grant, which has enabled us to take up rehabilitation works at a desired pace for those families affected by the tragedy. The Government of Andhra Pradesh has prepared an action plan of Rs. 317 crores for rehabilitation of the affected population, and it will be implemented during the financial year 2005-06.
3. The problem of drought continues to haunt the State for the fourth consecutive year affecting 795 Mandals during the current year. Agriculture, which constitutes the bulk of the economic activity of the State, naturally suffered heavily, impacting the overall growth of the economy.
4. Budget is not merely a statement of accounts or statement of projections. In developing countries, as the Hon'ble Members are aware, budgets are used as instruments for socio economic transformation and for achieving growth with equity. The budgets are also used for eliminating the regional imbalances and improving the overall human development index, which is the weighted average index of more than 70 parameters that define the well being of the people. My effort in this budget exercise is similarly aimed at faster economic growth with investments in productive sectors with an emphasis on equitable development.
5. This is the first full budget I am presenting to this august House, as last year I had no opportunity to present budget for the entire year. In my first budget speech to this august House, I narrated the precarious status of the state finances, which have been inherited by this Government. The GSDP growth rate during the period 1994-2002 had not only fallen to 5.01 percent and was also lower than national average of 5.89 percent for that period. The average annual growth rate in the agriculture sector for that decade was as low as 1 percent and the average annual growth in employment also fell to 1.1 percent as against 2.4 percent for the earlier decade.
Inappropriate priorities of the earlier Government led the state towards debt trap. Thus the first task of this Government was to cut down the expenditure on unproductive purposes and increase the expenditures on productive schemes, of course, keeping in mind the obligation of State Government under Medium Term Fiscal Framework, which states that the revenue deficit has to be eliminated completely by the year 2006-07.
6. Honourable Members are quite aware that the 9 months time available to the Government during the current financial year is too short to put the finances back on rails as the task before us is too gigantic. However, our Government have done a commendable job in aiming at a revenue deficit to Rs. 1,461.64 crores, as against the previous year's figure of Rs. 2,961.64 crores. This means that we were able to reduce the percentage of revenue deficit to fiscal deficit from 39.75 percent in 2003-04 to 21.79 percent for the current fiscal. For the next financial year, 2005-06, the revenue deficit is estimated to come down to Rs. 1,401.38 crores, accounting for only 16.72 percent of the fiscal deficit. This clearly means that other than Karnataka, Andhra Pradesh is the only other major state, which is in the course of eliminating the revenue deficit in next few years. The revenue deficit was 1.64 percent of GSDP in 2003-04 and this will come down to 0.72 percent in 2004-05 (RE). Similarly, the fiscal deficit was 4.12 percent of GSDP in 2003-04 is expected to decline to 3.31 percent in 2004-05 (RE). This further implies that most of the monies borrowed are being applied only for developmental work and for creation of income and employment generating assets. Further, the State Government have not resorted to ways and means advances during the year 2004-05 so far in contrast to Rs.6,316 crores availed during the corresponding period of 2003-04. These efforts on financial prudence benefited the state by reducing the interest burden on ways and means advances and overdraft besides improved image of state's fiscal management. We could achieve this even after discharging huge liabilities and unfulfilled commitments like, reimbursement of handling charges and market fee for the rice stocks lifted under Food For Work Programme, DA arrears to Pensioners and interest subsidy to Cooperative agriculture loans left unpaid by the previous Government. I suppose the Honourable members would appreciate fiscal consolidation measures undertaken by this Government. We are not, however, resting on these laurels.
7. The Contributory Pension Scheme has been introduced for those employees who are recruited on or after 1st September 2004. Under this scheme, each employee will pay a monthly contribution of 10 percent of the basic pay and D.A. from his salary to the Contributory Pension Fund and the State Government will make matching contribution. This will control the growing pension burden on state finances. I am very happy to inform the Honourable Members that yet another step taken by the Government, namely, debt swap measures have resulted in considerable savings in interest burden of the Government, by aligning interest rates with the market rates.
8. It is increasingly evident that fiscal correction holds the key to provide adequate resources to development spending. Self-regulation and stricter adherence to the principles of financial accountability would improve the financial condition of the State. In order to institutionalize this fiscal discipline our Government will shortly introduce a bill on Fiscal Responsibility and Budget Management.
9. During last budget speech I mentioned the key issue of greater accountability at all levels of Government and in this direction the State Government have taken steps to strengthen internal audit and to rebuild assets registers at various levels. A comprehensive Hand Book on Financial Accountability has been compiled and training programme for Chief Controlling Officers and Drawing and Disbursing Officers will be conducted during 2005-06. The Municipal Administration department has prepared a manual for accounting standards for urban local bodies in tune with national accounting standards. Our Government would also strengthen institutional measures against corruption to prevent leakage from revenue resources side and expenditure side.
10. Implementation of Value Added Tax (VAT) will ensure transparency in taxation and facilitates provision of input tax credit for all eligible purchases. I humbly submit to this august House that I pleaded strongly for quick finalisation of compensation formula for the State Governments, which was graciously accepted by Union Finance Minister and a very reasonable compensation formula is notified by Government of India. Our Government desires that the provisions of the VAT Act shall not be used as instrument of harassment and accordingly, necessary safeguards have been built into in the proposed VAT Act. Traders having an annual turnover of less than Rs. 5.00 lakhs do not come under the purview of the turnover tax registration. Further greater checks by way of written consent of Commissioner is required for sanction of prosecution under the Act, which will ensure that undue harassment of traders does not take place. Better infrastructure and simpler taxation laws are aimed at better compliance by traders and transparency in decision making by the authorities.
11. The infrastructure relating to revenue earning departments will be further strengthened. Inter connectivity of all 193 circles and 16 check posts of Commercial Taxes department will be achieved by March, 2005. A budget allocation of Rs. 7.5 crores has been proposed during 2005-06 for construction of office buildings of Commissioner, Commercial Taxes, Commissioner of Prohibition and Excise and Inspector General of Registration and Stamps. The offices of the Mandal Revenue Officers in the State will be provided with permanent buildings in a phased manner. For this purpose an allocation of Rs. 10.00 crores is being made in the budget for 2005-06.
12. I know that the State Government employees are eagerly awaiting the implementation of new pay scales. The Government expects to receive the report of Pay Revision Commissioner shortly. As soon as this report is received, the Government would initiate action on the recommendations.
13. While implementing various financial initiatives, this Government have not lost sight of its assurances made to the people. Major promises relating to free power to the needy, waiver of power dues, three percent interest loans to DWCRA groups, payment of D.A arrears to pensioners, notification of vacancies for Group-I and Group-II services, implementation of special package to farmers who committed suicides and taking up of major irrigation projects have been implemented in a short span of 9 months and I am sure that no other Government in the recent history have implemented so many promises made to the people in such a record time.
14. The ideology of late Smt. Indira Gandhi and the dynamism and vision of late Sri Rajiv Gandhi guide the development agenda of this Government. Smt. Indira Gandhi strived very hard to eradicate extreme poverty and hunger and to ameliorate the living conditions of poor people and Sri Rajiv Gandhi fought for the economic independence of our country and placed India on top of the world in the fields of science and technology. Indira Prabha, Indira Kranthi Padham, Rajiv Yuvashakthi, Rajiv Internet village, Food Assurance Programme and the Broad Band network are some of the major initiatives taken up in this direction.
15. All over the world, economies similarly placed as ours, have begun their economic reforms process from the primary sector i.e., agriculture and allied activities, as the inefficiency factors are highest in that sector, besides the problem of disguised unemployment. The primary task therefore is to carry out reforms in agriculture by improving the farm yields through better agronomical practices and precision farming techniques on one hand and by substantially improving the irrigation facilities on the other. Experience in our own State and in the Country show clearly that higher farm yields are directly proportional to the availability of assured irrigation water. By encouraging investments in storage and agro processing areas, the non-farm sector will get greater impetus, thereby helping the surplus agriculture labour migrating to the non-farm sector.
16. Honourable Members are aware that for the year 2004-05, a revised plan outlay of Rs. 4,002 crores for irrigation has been made and this accounts for 31 percent of the total revised plan outlay for this year. For the next financial year, 2005-06, we are proposing a plan outlay of Rs. 6,350 crores for irrigation and this will constitute 40 percent of the total plan outlay. The importance that we are attaching to Irrigation can be best appreciated by the fact that the earlier Government spent only Rs. 8,539 crores in plan for irrigation for the seven years period (1997-2004), constituting a meagre 18 percent of the total plan expenditure for that period. We earnestly hope that the allocations in Irrigation will have a very beneficial impact on the overall economic growth of the State, as the multiplier effect is highest in public investments in infrastructure.
17. In deference to the wishes of Honourable Members, the Assembly Constituency Development Programme is being revived from 2005-06 and an amount of Rs.50 lakhs is allocated for the purpose to each Assembly constituency.
18. The Annual Fiscal Framework of A.P for 2005-06 has been placed on the website. Besides ensuring transparency, this step has led to involvement of people in the budgetary process.
Annual plan for 2005-06
19. Annual Plan for 2005-06 is estimated at Rs. 15,650.77 crores, which is an increase of 17.75 percent over the current year's estimated Annual Plan of Rs. 13,291.20 crores. 20. Our Government have attached very high priority for the speedier completion of Irrigation Projects. Accordingly, the allocation to irrigation sector in the Annual Plan amounted to Rs. 6,350.00 crores reflecting a 50.42 percent increase over the current year's plan outlay of Rs. 4,221.60 crores. Irrigation Plan outlay constitutes 40.57 percent of the total Annual Plan outlay for 2005-06. Total Plan allocations for welfare of Scheduled Castes, Scheduled Tribes, Backward Classes and Minorities, amount to Rs. 1,030.95 crores, which is an increase of 15.64 percent over the current year's allocation of Rs. 891.53 crores. Similarly, the allocation for urban development amounted to Rs. 566.41 crores constituting an increase of 20.34 percent over the outlay of 2004-05 (BE). The allocations for Education, Sports, Arts, Culture as well as Medical and Health sectors have increased by 21.91 percent and 12.48 percent respectively over the current year's levels and are put at Rs. 723.90 crores and Rs. 461.10 crores respectively.
21. The economy of the State is predominantly agriculture based and we are the fifth largest in India in terms of area of operation and population. This sector is providing employment to 65 percent of the State's population. There are 106.03 lakh operational land holdings in the State. Out of these 85.51 lakh holdings belong to small and marginal farmers constituting 81 percent holdings and they hold 42 percent of the area-operated.
22. From 1st June, 2004 till 9th February 2005 the rain fall received is 611.5 mm as against normal rain fall of 857.3 mm, resulting in a deficit of 29 percent. Our Government took all steps to implement contingency action plan by distributing subsidized seed for alternative crops in the drought-affected mandals.
23. During Khariff 2004, 77.85 lakh hectares was sown under different crops as against the normal area of 79.52 lakh hectares. During Rabi 2004-05, an area of 30.54 lakh hectares is covered under different crops against a normal area of 33.16 lakh hectares. There is sizeable reduction in the area due to non-availability of water in the major commands.
24. During 2004-05 the food grain production is expected to be 149.77 lakh metric tonnes, oil seeds production is estimated at 26.05 lakh metric tonnes. The estimated production of groundnut and cotton is 16.60 metric tonnes and 27.39 lakh bales of 170 Kgs (in lint) respectively.
25. Seed and fertilizer testing facilities are being provided at each district headquarters at a total cost of Rs. 25.00 crores. An amount of Rs. 3.00 crores is released for establishment of DNA Finger Print Lab in the state and it is hoped that this unit will function shortly. A comprehensive plan of Rs. 20.00 crores is formulated for farm mechanization and is being implemented in the State.
26. I am very happy to inform the Hon'ble Members that the Government have given clearance for filling up of 491 posts of Agriculture Extension Officers and 275 Mandal Agricultural Officers. This will boost the transfer of technology to the farmers in the State.
27. Institutional Credit was extended to the tune of Rs. 7,010 crores to the farmers during Khariff 2004. As against the target of Rs. 4,219 crores for the present Rabi Season, Rs. 2,245 crores have been distributed till January, 2005. As against 56.17 lakh Kisan Credit Cards issued by the other Banks, 32.44 lakh Cards have been issued to the farmers under Cooperative Credit structure in the State upto December, 2004.
28. Our Government have sanctioned Rs. 196 crores to improve the equity base of District Cooperative Central Banks in the State, so that these District Cooperative Central Banks can get refinance facility from NABARD.
29. The Budget Estimate for Agriculture and Cooperation for 2005-06 is Rs. 702.45 crores.
30. During current financial year, Horticulture department has brought an additional area of 31,745 hectares under various horticultural crops by providing financial assistance and extension services.
31. The department has also brought an additional area of 12,198 hectares under Micro Irrigation during 2004-05. Four Agri Export Zones have been set up in the State for Mango, Grapes, Vegetables and Gherkins. Another Agri Export Zone (AEZ) for Chillies will come up in Guntur District shortly.
32. The Budget Estimate for Horticulture for 2005-06 is Rs. 202.78 crores.
33. Andhra Pradesh stands first in poultry and buffalo population and second in Sheep population in the Country. With 69.59 lakh metric tonnes of annual milk production, the state occupies fourth position in the Country. Similarly with annual production of 1,499 crores eggs the State occupies first position in egg production and with 4.47 lakh metric tonnes of meat production Andhra Pradesh stands second in meat production in the country. Presently about 24 lakh families in Andhra Pradesh are directly dependent on livestock rearing for their livelihood. This sector contributes 7.27 percent to GSDP.
34. Twenty six mobile veterinary clinics have been sanctioned during 2004-05 to provide animal health care in remote areas of the State.
35. In order to eradicate the Foot and Mouth Disease in livestock which is an economic drain, a mass vaccination programme involving Rs. 2.28 crores has been taken up in 5 districts of the State (Hyderabad, Ranga Reddy, Medak, Anantapur and Chittoor) with 100 percent financial assistance of Government of India.
36. In order to provide required vaccine at free of cost to farmers to protect their livestock, the Government vaccine production units are modernized with an outlay of Rs. 8.15 crores during the year 2004-05.
37. During the year 2005-06 the Animal Husbandry department is planning to introduce 15 more Mobile Veterinary Clinics, double the allocation for the Fodder Seed distribution and concentrate on de-worming of Calves and Sheep. The allocation for drugs is being increased.
38. The Budget Estimate for Animal Husbandry for 2005-06 is Rs. 202.80 crores.
39. Under Fisheries sector, Government have sanctioned Rs. 30.00 crores from Marketing funds to strengthen the fisheries infrastructure like shore based facilities, fish drying platforms, aqua labs, feed analysis labs, etc., Fifty percent of these works have been completed and other works will be completed by this year. One antibiotics testing Lab at a cost of Rs. 1.40 crores is established for testing and ensuring the absence of antibiotics in the shrimp exports. The total loss of Fishing Craft and Tackles in the Tsunami that hit the coast in December, 2004 is assessed at Rs. 40.62 crores. The Government have immediately arranged relief and rehabilitation measures to all the affected fishermen through liberal grant or subsidy and loans at a reduced rate of interest from banks.
40. The Budget Estimate for Fisheries for 2005-06 is Rs. 55.42 crores.
41. The grounding of irrigation projects has been the thrust of the Government in 2004-05 and the projects of the Government in Jalayagnam and Haritha Andhra Pradesh shall be sustained and achieved in the year 2005-06 as per the short-term and long-term goals set by this Government.
42. The Government is determined to tackle the issues of funding irrigation projects head on. Besides dovetailing the existing schemes and programmes, Government is sourcing funds from financial institutions also. Discussions with financial institutions are progressing and the Government is sincerely committed to achieving the goals set for completing the irrigation projects. A cell has been formed at New Delhi to expedite the central clearances required for projects.
43. This gigantic task cannot be achieved adopting traditional approach. Pioneering changes in Government's approach to execution of works for capital investment in the irrigation sector have been made. This is by way of outsourcing every detail from engineering i.e., investigation to completion. This was essential to overcome the manpower constraints in achieving Rs. 46,000 Crores capital outlay in new and ongoing projects.
44. Large extent of agricultural land would be brought under cultivation through the speedier completion of 26 on-ongoing and pending projects. Of these 26 projects, 8 are slated to be completed in 2 years and the works of these projects are on fast pace of progress. The other 18 projects are scheduled to be completed in 5 years. The tendering process of these projects is initiated for taking up the works and will be completed in time bound schedule. The K.C. Canal modernization works are nearing completion.
45. Administrative approval for taking up the works of right and left main canals and spillway of Polavaram project for Rs. 3,793.00 crores has been accorded.
46. The commitment of the Government and the promises made for improving the irrigation facilities can be gauged by the sincere approach in the sanction of Yellampally (Sri Sripada Rao) project administratively for about Rs. 900 crores for which foundation stone was laid on 28th July 2004. Bhoomi Pooja for taking up the works of Pulichintala project was performed on 15th October 2004. The Government is determined to complete Janjhavati project and Thotapalli barrage as early as possible.
47. The Krishna Water Dispute Tribunal has been constituted and the previous award of allocation of Krishna waters to Andhra Pradesh is under review now. The Government is taking every step to represent the State's case effectively before the Tribunal.
48. In 2004-05, the Government recruited about 300 Assistant Executive Engineers and of these about 100 were women. The Government proposes to recruit another 300 Assistant Executive Engineers in 2005-06. Further, Government have created 5 Additional Special Collector posts and 44 Special Deputy Collector Units for land acquisition purposes.
49. The Budget Estimate for Irrigation for 2005-06 is Rs. 8,589.64 crores.
50. To ensure system's stability and reliable power supply and to provide free electricity to needy agriculturists, State Government have made marginal modifications to the free power policy. The intention of the Government is to benefit all the needy farmers with effect from 1st April, 2005. The intention of the Government is not to reduce subsidy to needy farmers but only to protect power infrastructure from overexploitation.
51. Government have provided a subsidy of Rs. 8.35 crores during the current year at the rate of Rs. 10/- per consumer to all the domestic consumers with a connected load of up to 250 watts and consumption upto 15 units per month with effect from October, 2004.
52. During the year 2004-05, 2 Nos. of 220 KV Sub stations, 9 Nos. of 132 KV Sub-stations, 69 Nos. of 33 KV Sub-stations are commissioned up to the end of December, 2004, and 4,511 habitations have been electrified. Transmission and Distribution losses to the end of December 2004 are 21.19 percent when compared to 23.46 percent during the same period of last year.
53. During 2004-05 (Upto December 2004), 306 MW of generation capacity has been added bringing total capacity in the State to 11,001 MW.
54. APGENCO is raising funds from various financial institutions like Power Finance Corporation (PFC), Rural Electrification Corporation (REC), HUDCO and other commercial banks for speedy implementation of new power projects of total capacity of 4,194 MW by the end of 2008. APGENCO has entered into MoU with Rural Electrification Corporation for funding new projects to an extent of Rs. 2,500 crores.
55. The Budget Estimate for Energy for 2005-06 is Rs. 2,187.49 crores.
SchoolEducation56. Education is development. It not only provides opportunities for the people and reduces the twin burden of poverty and disease but also creates a dynamic work force leading to economic and social prosperity of the State. In this direction our Government have been making concerted efforts to realise the goal of providing free and compulsory education to all the school age children in the state. The District Primary Education Programme (DPEP) and the Sarva Siksha Abhiyan (SSA) are the two major interventions in the State for the improvement of elementary education in all aspects.
57. Under Sarva Siksha Abhiyan (SSA), 1,886 new primary schools have been opened in school-less habitations and 4,528 primary schools were upgraded into upper primary schools. An amount of Rs. 240.00 crores has been provided in the budget of 2005-06 for implementation of Mid-day Meals Programme.
58. The Budget Estimate for School Education for 2005-06 is Rs. 4,346.45 crores.
59. There are 3,284 Junior Colleges under different Managements with student strength of 13.22 lakhs in the State. During the current financial year this Government besides opening new Government Junior Colleges in college-less mandals in tribal areas, have filled up 331 Junior Lecturers posts through direct recruitment. An amount of Rs. 8.00 crores has been spent for construction of buildings to the Junior Colleges and to carry out minor works.
60. An amount of Rs. 10.00 crores is specially earmarked for construction of permanent buildings for Government Junior Colleges during 2005-06.
61. To meet the demand of seats in degree colleges new under-graduate courses have been sanctioned in 303 Government Degree Colleges during 2004-05.
62. The Budget Estimate for Higher Education for 2005-06 is Rs. 1,004.00 crores.
63. During 2004-05 Technical Education department introduced new courses like Diploma in Bio-technology, Diploma in Travel and Tourism and Diploma in Textile Technology (Design and Manufacturing) in the emerging fields of Bio-Technology, Travel and Tourism and Textile Technology.
64. Our State is one among the seven States selected to participate in the 2nd phase of Technical Education Quality Improvement Project (TEQIP) of Government of India and an amount of Rs. 149.67 crores has been allocated for implementation of TEQIP during 2004-07. The programme addresses the major issues like quality improvement, modernization of laboratories, faculty development, curriculum improvement etc., in engineering colleges and polytechnics.
65. Indian Institute of Technology, Kharagpur has proposed to establish an extension centre at Hyderabad. Modalities in this regard are being worked out without relinquishing our claim for an IIT at Basar.
66. The Budget Estimate for Technical Education for 2005-06 is Rs. 163.84 crores.
67. Government have been making concerted efforts to provide universal access to comprehensive health and family welfare services of acceptable standards of quality. It is targeted to reduce Infant Mortality Rate (Per 1000 live births) from the present 62 to 15 and to reduce Maternal Mortality Rate (per 1000 live births) from the present 1.54 to 0.5 over a period of 15 years. As these two factors are closely linked to poverty, the Government have to play a more pro-active role in strengthening health infrastructure in rural areas, more so in tribal and backward areas.
68. Accordingly number of initiatives and interventions have been taken up to cope with the increasing demands on the health systems. These initiatives include establishment of Comprehensive Emergency Obstetric and Neonatal Care Centres, Implementation of Emergency Health Transportation Scheme and Women Health Volunteers Scheme. The department of Family Welfare has also proposed to conduct a campaign for examination of school children in all Government schools in the state under School Health Project. Arogyaraksha scheme has been implemented to increase the confidence levels of couples about child survival and to support them in opting for a small family.
69. During 2004-05, eighty Primary Health Centres have been sanctioned exclusively for tribal areas. The department has also been permitted to fill up 1,000 vacancies of Medical Officers and proposes to fill up 1,200 vacancies of Staff Nurses on regular basis. An Integrated Disease Surveillance Project has been taken up during 2004-05 with the aid of World Bank. Construction of buildings for all Primary Health Centers (PHCs) which are in private buildings or in a dilapidated condition has been taken up under NABARD Scheme.
70. For 2005-06 an amount of Rs. 8.00 crores is earmarked to meet the expenditure involved for the treatment of children with cardiac problems. A Government Medical College is being established at Kadapa with an annual intake of 150 seats in MBBS. The department is also planning for establishment of Emergency and Trauma Care Centres at selected eight hospitals in the state. A committee has been constituted to review the implementation of the project relating to up-gradation of NIMS to AIIMS. The facilities in teaching hospitals will be strengthened at a cost of Rs. 300 crores through HUDCO loan assistance.
71. Effective prevention and treatment programmes to combat diseases like HIV/AIDS will save lives, reduce poverty and help economy to grow. Our Government, based on international and national experiences, have worked out a clear and multi-pronged effort for prevention and control of HIV/AIDS. "Colleges Talk AIDS" programme has been initiated in October, 2004 for greater awareness about HIV/AIDS among the students. In collaboration with other sister departments AIDS Control Society is taking up capacity building for women self-help groups and adolescent girls. Like wise, a total of 2.10 lakh youth group members have also been trained in the awareness training programme. Eighty five Sexually Transmitted Diseases (STD) Clinics have been set up to reduce the vulnerability of people to HIV by treating the STD.
72. The Budget Estimate for Health and Family Welfare for 2005-06 is Rs. 1,824.47crores.
73. Ms. Sania Mirza, who hails from our state, has made Andhra Pradesh proud by winning the Hyderabad Open. She has crossed a new mile stone in tennis by winning a WTA trophy and in fact, has become the first Indian woman to achieve this glory. I am sure that this august House would join me in congratulating Ms. Sania Mirza and placing this glorious achievement on record.
74. The achievements under Sports are remarkable during 2004-05, wherein a total of 249 Medals (101 Gold, 79 Silver and 69 Bronze) were won by our sportsmen/women in the events held in various sports disciplines at National and International level. A total amount of Rs. 33.20 lakhs was given as cash awards to various meritorious sportspersons in their respective sports disciplines. In the year 2004, a total of three Arjuna awards were given to our State sports persons, which is a record in itself, thus bringing glory to our State in the arena of Sports.
75. Various sports related activities like tribal sports, rural sports and women sports were organized during 2004-05 and special emphasis is being given for development of sports infrastructure in Government Residential Schools and Colleges. Regional Sports Schools at Kadapa and Viskhapatnam are being planned besides construction of Sports complex at A.P. Sports School in Hakimpet, Secunderabad.
76. The Budget Estimate for Sports for 2005-06 is Rs. 38.85 crores.
77. Large Number of representations have been received by this Government to revive Sangeetha Academy, Nruthya Academy and Nataka Academy in the State. This Government feels that revival of these academies will not only preserve the distinct culture of our people but also brings awareness in our young generations about our cultural identity and its importance. Accordingly our Government have decided to revive the Sangeetha, Nruthya and Nataka Academies and a budget provision of Rs. 50.00 lakhs is proposed for 2005-06 for this purpose. Ravindrabharathi, the State owned auditorium in Hyderabad will also be renovated at a cost of Rs. 75.00 lakhs. During 2005-06, the Department of Cultural Affairs will come out with State cultural policy for the first time in the State.
78 The Budget Estimate of Cultural Affairs for 2005-06 is Rs. 11.19 crores.
SocialWelfare 79. During 2004-05 our Government have issued orders increasing the rates of post-matric scholarships from the existing rates of Rs. 400 - Rs. 525 per month for attached hostels to Rs. 525 - Rs. 740 per month and in respect of day scholars it is increased to a maximum of Rs. 330/- per month. In addition to the existing 94 college hostels functioning with a strength of 9,400 students, this Government have sanctioned 46 new College hostels at strength of 4600 during 2004-05. Government have also taken up the construction of 405 hostel buildings at an estimated cost of Rs. 50 crores. Government have also decided to start Special Sessions Courts in all the districts to deal with the cases of atrocities against the Scheduled Castes and Scheduled Tribes.
80. At present, pensions to poor widows are being paid at the rate of Rs. 75 per month. This amount will be increased to Rs. 100 with effect from April 2005. Our Government will additionally sanction 50,000 pensions to poor widows during 2005-06.
81. The Budget Estimate for Social Welfare for 2005-06 is Rs. 1020.10 crores.
82. Until now, six percent of State Annual Plan is being earmarked for Tribal Sub Plan. However, as per 2001 census, the tribal population of the State has increased to 6.59 percent of the total population. Considering this fact, our Government have decided to increase the allocation of Tribal Sub Plan to seven percent with effect from the year 2005-06. The allocation of budget for Tribal Welfare department is substantially increased during 2005-06 as compared to 2004-05. The Tribal Welfare department's budget was Rs. 544.50 crores in 2004-05 and it is proposed to increase this to Rs. 634.80 crores during 2005-06. A special package is being taken up for the first time in the Country for laying B.T. Roads and supply of drinking water in tribal areas at a cost of Rs. 84.66 crores for 451 works under NABARD assistance during 2005-06. Our Government have sanctioned 33 new Primary Health Centres, three new Ashram Schools, one Scheduled Tribe boys hostel and five Residential Schools in tribal areas during 2004-05.
Backward Classes Welfare
83. For the year 2004-05 Backward Classes Welfare department has provided post-matric scholarships to 3.20 lakh beneficiaries from backward classes. The strength of B.C. Hostel boarders has been substantially increased from 1,58,219 to 1,72,786 thereby sanctioning 14,567 additional seats during 2004-05. This Government's policy is to sanction atleast two Residential Schools i.e., one for the boys and one for the girls in each district.
84. Our Government have constituted the new Backward Classes Commission to examine the various claims relating to inclusion and exclusion of castes into Backward Classes categorization.
85. The Budget Estimate for Backward Classes Welfare for 2005-06 is Rs. 300.79 crores.
Handloom sand Textiles
86. I know that the Honourable Members are quite concerned about the plight of weavers in the State. In recent times families from weavers' community have been put to great suffering on account ofunemployment problems. Our Government have taken up the cause of bettering the lives of people belonging to weavers' community and accordingly appointed a committee to look into the problems of weavers. Government on its part have taken many initiatives to mitigate the sufferings of weavers in the state. Under the Bhunkar Bima Yojana scheme, one lakh handloom weavers are proposed to be covered during 2004-05. So far 66,606 weavers have been covered under this programme. Government have also sanctioned 10,000 work-shed-cum-houses exclusively to the weavers in the state. Also, 30,000 weavers are being provided with artisans credit cards during this year. The gesture of Government of India in exempting the excise duty on hank yarn has resulted in 9.2 percent reduction in hank yarn prices. This Government have released an amount of Rs. 10.00 crores to APCO as revolving fund for liquidation of stocks piled up in Primary Weavers Cooperative Societies. This sector has been identified as lead sector in the districts of Warangal, Chittoor, Mahaboobnagar, Nalgonda and Karimnagar under Rashtriya Sam Vikas Yojana scheme. Our Government would take steps to include other districts like Prakasam, which have predominant weavers' population, into this scheme.
87. I am happy to inform the Honourable Members that 50,000 new pensions will be sanctioned for the weavers' community from next financial year. For this purpose Rs. 6.00 crores are earmarked.
88. The Budget Estimate for Handlooms and Textiles for 2005-06 is Rs. 76.85 crores.
89. Andhra Pradesh has the distinct record of establishing an independent department and independent corporation for the welfare of disabled in the Country. I am happy to inform this august House, that 50,000 pensions will be additionally sanctioned during 2005-06 for disabled persons. The pension amount will also be increased from Rs. 75 per month to Rs. 100 from the year 2005-06.
90. The Budget allocation for Disabled Welfare is being increased sharply from Rs. 21.67 crores in 2004-05 to Rs. 32.93 crores in 2005-06.
91. Minorities Welfare continues to be our Government's focus area. I am very happy to inform the Honourable Members that our Government proposes to increase the allocation for scholarships to Minorities from Rs. 4.00 crores in 2004-05 to Rs. 9.00 crores during 2005-06. Further an amount of Rs. 5.00 crores is allocated for construction of Urdu Ghar-cum-Shadikhanas in the state during 2005-06. Accordingly, the budget allocation for Minorities Welfare is being increased from Rs. 39.09 crores in 2004-05 to Rs. 49.12 crores in 2005-06. The Muslim minorities reservation issue is referred to the newly constituted B.C. Commission for examination and report.
92. Women have an enormous impact on the well being of their families and Society. However, their potential is not fully tapped because of discriminating social norms and economic dependency. Gender inequalities still remain pervasive. Our Government strongly feels that this situation can effectively be overcome through women empowerment initiatives.
93. The department of Women Development and Child Welfare is running 363 ICDS Projects with 56,518 Anganwadi Centres, which cover more than 90.00 lakh women and children in the State by providing health, nutrition, education and social awareness. During the year 2004-05 the department has covered 97,750 beneficiaries under Girls Child Protection Scheme and 15,60,408 children under free school education. Balika Mandal Scheme has been introduced in 2112 Anganwadi Centres at a cost of Rs. 2.11 crores. Under this scheme a group of 25-30 adolescent girls are being selected to form a Balika Mandal at village level to work as vigilance squads on social evils.
94. The Budget Estimate for Women Development and Child Welfare for 2005-06 is Rs. 517.25 crores.
95. Our Government's goal is to cover all the poorest of the poor into Self Help Groups. In order to strengthen the self help groups and dovetail the programmes relating to poverty alleviation earmarked for self help groups, State Government have launched Indira Kranthi Padham scheme to bring all such programmes under one common umbrella. During 2004-05, it has been planned to have a programme of Rs. 1,200 crores under Self Help Group - Bank linkage programme. Further bank linkage of Rs. 1.00 crore per mandal for self help groups has been planned for remote and interior tribal areas where the bank coverage is poor. The loans taken by women self help groups after 1st July, 2004 will have a subsidy rate of interest, the maximum subsidy being six percent.
96. Proposals for sanction of 100 girls' residential schools for backward classes during 2005-06 have been sent to Government of India under Kasturba Gandhi Balika Vidyalaya Scheme. The Social Welfare Department would sanction 44 new hostels to scheduled caste girls who are studying in 3rd to 10th classes in the State.
97. The Women Empowerment department is also sanctioning old age pensions in the State.
98. The Budget Estimate for Women Empowerment for 2005-06 is Rs. 286.64 crores.
99. Hon'ble Members are aware that this Government have launched "Rajiv Yuvashakthi Programme" in the State on 19th November, 2004 with a view to provide financial assistance to Youth taking up self employment projects. The assistance will be given to individuals as well as groups consisting of five members with a subsidy component of 30 percent. The main objective in introducing this scheme is to make the unemployed employable. An action plan to provide employment to 1.5 lakh youth will be implemented during 2005-06.
100. Keeping in view the promises made by this Government, the budget allocation for Youth welfare programmes is proposed to be increased from Rs. 70 crores in 2004-05 to Rs. 124.00 crores in 2005-06.
101. Government attaches top most priority to Weaker Sections Housing Programme. Accordingly, during 2004-05, our Government have substantially increased the unit cost both under Rural Permanent Housing (RPH) and Urban Permanent Housing (UPH) and also enhanced the income ceiling limits under both the categories.
102. The A.P. State Housing Corporation has taken up construction of 6.50 lakh houses covering all schemes during 2004-05.
103. Government also intends to construct one lakh EWS houses in Hyderabad urban agglomeration and other cities in the state. The total outlay for this programme is about Rs. 900 crores.
104. The Budget Estimate for Housing for 2005-06 is Rs. 724.70 crores.
105. The growth of industrial activity in the State is quite encouraging. During the year 2004-05, the State Level Nodal Agency has arranged 502 clearances or approvals for 183 large and medium scale industries at an investment of Rs. 7,620.24 crores. The District Level Nodal Agencies have arranged 5944 clearances or approvals for 3686 small scale/tiny industries. 30,581 SSI and Tiny units at an investment of Rs. 769 crores have been established by December, 2004. State Government have also introduced A.P. Small Scale Industries Revival Scheme (APSSIRS) to address the problems of small scale industries sector. Under this scheme, reliefs such as relaxation of power cuts, fiscal concessions etc. are being extended to sick units in SSI sector. In order to give major thrust to industrial activity in the state a new fund, namely, Seed Fund for Infrastructure and Investment at an outlay of Rs. 100 crores will be established during 2005-06.
106. The Budget Estimate for Industries for 2005-06 is Rs. 293.53 crores.
107. Information Technology is an important tool for the over all development of the State through multi-sphere activities of providing employment, citizen services, access to information through speedy communication network and for providing good governance. Rajiv Internet Village Programme was launched on 20th August, 2004 to facilitate delivery of services to the rural people through 22,000 kiosks. So far 1,300 kiosks have been established and it is also contemplated to set up 6,000 kiosks by September, 2005. Imparting Computer literacy to at least one member in each of the rural families is also envisaged. Work relating to establishing a Broadband network with a provision of 10 GBPS to district headquarters, 1 GBPS to Mandal headquarters and 100 MBPS to village level is launched in January, 2005.
108. e-Seva Net work is extended to all the municipalities in the State by establishing 229 centres. Over 30.00 lakh transactions per month are recorded in these centres. Software exports from the State recorded 30 percent growth over the previous year and they are expected to cross Rs. 6,500 crores by March, 2005
109. The Budget Estimate for Information Technology for 2005-06 is Rs. 82.30 crores.
110. Tourism is a priority sector to generate employment and revenue in rural sector. Our Government is determined to fully exploit the tourism potential in the State and in this direction major projects like Large Sea Cruise Vessel from Visakhapatnam to Pondichery and Srilanka, Southern Splendor a circular tourist train connecting all five South Indian States, Kadapa-Kurnool circuit development scheme and construction of multi purpose cultural complex are being proposed by the Tourism department during 2005-06.
111. The Budget Estimate for Tourism for 2005-06 is Rs. 77.20 crores.
112. Our Government strongly feels the need to strengthen its finances through fiscal, structural and institutional reforms to enable to maintain adequate budget resources and to mobilise funds more easily for financing infrastructure projects. Adequate investments in infrastructure are required in order to sustain the growth and development of the State.
113. The Roads and Buildings department maintains about 65,347 Kms of State roads which comprises 8,271 Kms State Highways, 34,731 Kms major district roads, 18,240 Kms of rural roads taken over from the Panchayat Raj department and 4,104 Kms under National Highways. The road works to an extent of 1,263 Kms were completed under A.P. Economic Restructuring Project (APERP). About 5,600 Kms road network has been completed under A.P. State Highways project and other programmes. 4,792 Kms of rural roads have been upgraded to black topped surface and 176 bridges were constructed with NABARD assistance. The four laning of N.H. 5 has been taken-up as a part of Golden Quadrilateral Project by National Highways Authority of India. Similarly, NH 7 passing through the State is being developed as a part of North-South Corridor. Government have taken care to bring in transparency and remove cartel formation in the tendering process. "e-Procurement" system has been introduced to the level of Rs. 10 lakhs value of works, besides taking up other tender reforms.
114. The work relating to Hyderabad International Air Port is expected to be completed by 2007.
115. Government have given due importance to the Port sector during 2004-05. Gangavaram Port and Krishnapatnam Port are expected to be operational by December, 2007.
116. The Budget Estimate for Roads and Buildings for 2005-06 is Rs. 1404.92 crores.
117. Our Government have taken up number of schemes and programmes to improve the quality of life in rural areas of the State.
118. Rajiv Palle Bata (RPB) essentially is a process involving dialogue between the leader and the people. As is well known, people and their elected representatives are the twin motors powering our vibrant democracy. During this dialogue process, people get an opportunity to represent their problems directly to their leaders. The leadership, in turn, is benefited by the public feed back about governmental policies. The resultant symbiosis reinforces the democratic process.
119. The programme was initiated by the Hon'ble Chief Minister Dr. Y.S. Rajasekhara Reddy on 13th June, 2004 from Chevella, Ranga Reddy District. By now, all the 23 districts have been completed. A total number of 47,909 petitions have been received under Rajiv Palle Bata and 1049 assurances have been made in the process of district visits. 34,309 petitions have been addressed and 581 assurances have been fulfilled as on 31.1.2005. The process of responding to petitions and fulfilling assurances is going ahead unabated in all the districts.
120. To strengthen the decentralization process, Rajiv Palle Bata will be reviewed by the in-charge Ministers during the District Review meetings. Keeping in view the overwhelming public response to this novel scheme, an amount of Rs. 92.00 crores is being allocated in 2005-06 for this purpose.
121. During 2005-06, it is proposed to connect 1,361 habitations under various programmes like MNP, PMGSY and NABARD.
122. There are still 1,651 not covered habitations and 2,682 quality affected habitations in the State. During the year 2005-06, it is programmed to tackle the above habitations under various programmes such as ARWS, MNP, PMGY and NABARD.
123. Government is planning with full determination to tackle fluoride affected habitations in the districts like Nalgonda, Prakasam etc., with loan from financial institutions like HUDCO. Most of the fluoride affected habitations will be supplied with safe drinking water. Rural Sanitation Programme:
124. So far 41.27 lakhs Individual Sanitary Latrines were completed since inception and 3.93 lakhs Individual Sanitary Latrines are in progress. In respect of school sanitation programme against a total target of 58,000, so far 39,777 schools were provided with the sanitation facilities.
125. At present each pensioner is getting Rs. 75 per month under the National Old Age Pension Programme in the State. Our Government have assured the people that it would increase this monthly amount substantially and we are very sincere to implement this assurance. Due to its own financial constraints, our Government have taken up the issue with Government of India. However, keeping in view of the difficulties of the old age pensioners, our Government have decided to increase this amount to Rs. 100/- per month from the year 2005-06. Hon'ble Members have been representing for sanction of new pensions. Considering these requests the Government will sanction 1.50 lakh pensions additionally during 2005-06.
126. During the year 2004-05, 1.26 crore Below Poverty Line (BPL) families are getting rice at Rs. 5.25 per Kg. During this year, 2.99 lakh additional beneficiaries have been covered under Anthyodaya Annayojana scheme taking the total to 12.33 lakh beneficiaries and these beneficiaries are getting rice at Rs. 3.00 per kg. A total of 93,200 beneficiaries are covered under Annapoorna scheme who are supplied 10 Kg of rice free of cost. A quantity of 2.5 lakh tonnes of rice is being released every month for these schemes. An amount of Rs. 550 crores is allocated for rice subsidy in 2005-06.
127. Indira Prabha Programme has been launched to provide comprehensive support to the weaker sections in an effort to convert their unproductive asset into a productive one. Under this programme, 3.94 lakh acres of agricultural land belonging to 2.72 lakh Scheduled Castes, Scheduled Tribes and Backward Classes families will be developed at a cost of Rs. 500 crores.
128. Food Assurance Programme is a unique intervention in providing food security to the people in the State. I am proud to inform the Hon'ble Members that Andhra Pradesh is the first State in the Country where such a progressive and pro-poor approach is taken up. This scheme is started for the drought affected mandals and in the areas affected by recent Tsunami.
129. An amount of Rs. 127 crores and food grains of 1.25 lakh metric tonnes have been allotted by Government of India for implementation of National Food for Work Programme in 8 districts of the State. Under this programme, our State has made a unique intervention by developing a separate Rural Standard Schedule of Rates and the works are to be taken up without any contractors and machinery.
130. The Budget Estimate for Rural Development and Poverty Alleviation for 2005-06 is Rs. 2,238.61 crores.
131. Hon'ble Members are aware that our Government is committed towards good Urban Governance with an attempt to strengthen the urban systems to provide basic civic amenities and livelihood opportunities in the urban areas. In this direction, to understand the felt needs of the people and to give required orientation to our policies, Government have launched "Rajiv Nagar Bata" programme in the State from 9th January, 2005 which is a mass contact programme to capture the voices of the poor and vulnerable groups with the active participation of the people, people representatives, NGOs and the Government machinery. This programme has been received with a lot of enthusiasm and we will make all our sincere efforts to honour the expectations of the people. An amount of Rs. 50.00 crores has been allocated for the year 2005-06 for this purpose.
132. Perhaps, ours is the first Government which have initiated identification and notification of the non-notified slums in the urban areas so as to enable them to access the basic services and poverty targeted investments. We have also ensured that at least 40 percent of the total net funds available with the urban Local Bodies are spent in the slum areas where most of the urban poor reside. Government have also come out with a policy to provide house service tap connections to the urban poor at Rs. 1,200/- payable in 12 equal installments to access the safe drinking water. Learning from the success of the programme in APUSP towns, Government have extended "Urban Programme for Advancement Household Income" (UPADHI) in all the urban local bodies to enable the unemployed youth to choose their livelihood and live with dignity.
133. We are making our sincere efforts to mitigate the drinking water scarcity in the twin cities and in this regard we are advancing the implementation of Stage-II of Krishna Drinking Water Supply project with an estimated cost of Rs.1,000 crores so as to complete by March 2006.
134. Traffic congestion in Hyderabad City has become a major concern for all of us. In this connection, Municipal Corporation of Hyderabad is taking up the construction of five flyovers in Phase-I to give relief to the common man in the busy traffic corridors. Second phase of the Multi Model Transport System in partnership with the Ministry of Railways is also proposed to be taken up shortly.
135. Drawing upon the success achieved under A.P. Urban Services Projects funded by DFID in 42 towns, it is now proposed to take up A.P. Urban Reforms and Municipal Services Project with World Bank assistance at an estimated cost of Rs. 1380 crores to finance the infrastructure needs like roads, drains, water supply, street lighting and solid waste management etc. in the urban areas. It is also proposed to restore Hussain Sagar Lake with an estimated cost of Rs. 316 crores with the assistance from Japan Bank for International Cooperation (JBIC).
136. There is a substantial increase in the Budget Estimate for Municipal Administration and Urban Development from Rs. 1,198.08 crores in 2004-05 to Rs. 1,417.97 crores in 2005-06.
137. The forest area constitutes 23.2 percent of the total geographical area of the State. In order to protect and manage forests through people's participation, A.P. Community Forest Management Project is under implementation in the State at a cost of Rs. 653.97 crores. Under this project it is targeted to treat 3.15 lakh hectares of degraded forest area. The Forest Development Corporation is implementing the prestigious Vanaspathi Van project for Medicinal plantation at an outlay of Rs. 5 crores.
138. Andhra Pradesh Pollution Control Board has constituted a task force for inspection of Health Care establishments in the State.
139. The Budget Estimate for Environment, Forest, Science and Technology for 2005-06 is Rs. 419.62 crores.
140. The final accounts of 2003-04 reveal a revenue deficit of Rs. 2,961.64 crores. After taking into account the transactions on capital as well as public debt and public account, the year closed with a negative balance of Rs. 171.08 crores.
REVISED ESTIMATES 2004-05
141. Transactions as per the revised estimates of 2004-05 indicate a revenue deficit of Rs. 1,461.64 crores against the budgeted revenue deficit of Rs. 1,970.50 crores. The overall transactions of the year are estimated to result in a net surplus of Rs. 117.98 crores. After taking into account the opening negative balance of Rs. 171.08 crores the year-end balance is estimated to be negative Rs. 53.10 crores.
BUDGET ESTIMATES 2005-06
142. During the financial year 2005-06 it is programmed for an expenditure of Rs. 37,639.71 crores under non-plan and Rs. 17,691.59 crores under plan. This will result in a revenue deficit of Rs. 1,401.38 crores, which would be 0.62 percent of GSDP. The fiscal deficit is estimated to be Rs. 8,379.85 crores, which would be 3.72 percent of GSDP. After taking into account the overall transactions of the year, we will have a net surplus of Rs. 37.17 crores. The financial year 2005-06 is expected to end with a negative balance of Rs. 15.93 crores.
143. Sir, with these words, I now commend the Budget to the House for approval.
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