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Saturday, February 20, 1999

Irrigation sector gets a boost in AP budget

EXPRESS NEWS SERVICE  
HYDERABAD, FEB 19: Increased allocation for irrigation and social service sectors and a new poverty initiative project with an investment of Rs 616 crore are the highlights of the Andhra Pradesh budget for 1999-2000. In keeping with the tradition, no new taxes have been proposed.

The irrigation sector has been allocated Rs 1,313 crore, more than 23 per cent of the total outlay of Rs 5,479 crore. Social services which include maintenance expenditure on education and health received Rs 1,654 crore, accounting for 30 per cent. The power sector has been given Rs 868 crore.

The budget, presented by Finance Minister P Ashok Gajapati Raju to the State Assembly on Friday, was devoid of any major announcements and did not propose any new measures of resource mobilisation.

According to the budgetary estimates, the total revenue receipts for the next year are expected to be Rs 18,593 crore while the expenditure is projected at Rs 20,157 crore, thus leaving a revenue deficit of Rs 1,563 crore. However, taking intoaccount the overall transactions, the year is likely to close with a deficit of Rs 185 crore.

The 100-minute speech of the Finance Minister was mostly a recap of what the government did during the current year. Understandably, the minister drew derisive comments from the Congress members and applause from the treasury benches whenever he referred to achievements in various sectors.

Chief Minister N Chandrababu Naidu was not present as he was away in Delhi attending a meeting of the National Development Council (NDC). Almost half of the members left the House midway through the Finance Minister's speech.

The Finance Minister announced that the State proposed to launch a new project to alleviate the conditions of rural poor in six of the poorest districts. A provision of Rs 14 crore has been made in the budget for this scheme which would be funded by the World Bank.

Similarly, a family pension scheme for weavers was being evolved under which Rs 250 would be paid per month for a period of ten years tothe nominee/legal heir of the deceased weaver.

Touching on the success of water users associations, Raju said that 5.12 lakh acres in the tail-end areas has been brought under assured irrigation during the current crop season. Encouraged by this, the government has planned to rehabilitate all major and medium irrigation schemes in the state within the next one year with an expenditure of Rs 200 crore.

Under the watershed development programme which is being implemented with the involvement of farmers, the government proposed to spend Rs 223 crore during 1999-2000.

On power sector front, the Finance Minister said that an additional 1,388 MW would be added during the next year with major contribution from short gestation projects. The units which are in the process of being commissioned include the first unit of 150 MW reversible turbine of Srisailam Left Bank power house and five MW mini-hydel schemes.

The government has not made any allocation to reimburse the board the loss on account of thesubsidised power supplied to farmers and domestic consumers. The board would raise negotiated loans for this purpose and the government would bear the interest burden.

The provision for Aadarana, a new scheme launched by the government to provide improved tools to BC artisans, has been increased from Rs 100 crore this year to Rs 121 crore. Minority welfare has been given Rs 29 crore in the next year's budget as against Rs 25 crore now.

Referring to the Chief Minister's Empowerment of Youth (CMEY) programme, the Finance Minister said that a youth bank was proposed to be set up for the benefit of associations formed under the programme.

For the subsidised rice scheme under which rice is supplied at Rs 3.50 per kg to 1.13 lakh card holders, the budget made a provision of Rs 1,062 crore as against Rs 712 crore this year. This was necessitated on account of the increase in issue price by the Centre recently.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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