Hyderabad
Andhra Pradesh Finance Minister K. Rosaiah Saturday presented a
tax-free, revenue-surplus budget for 2008-09 with the overall
expenditure crossing Rs.100,000 crore (Rs.1 trillion or $25
billion), claimed to be highest figure for any state in the country.
In his budget speech, the finance minister told the state
legislative assembly that the overall expenditure in the financial
year 2008-09 would be Rs.1,004.36 billion comprising Rs.518.85
billion under non-plan and Rs.485.51 billion under plan heads. This
would result in a revenue surplus of Rs.7.09 billion, which would be
0.2 percent of the gross state domestic product (GSDP).
The fiscal deficit is estimated to be Rs.96.57 billion, which would
be 2.82 percent of the GSDP.
"The state's budget of over Rs. one lakh crore is the highest in the
country and higher than even our neighbouring country Bangladesh,"
Chief Minister Y.S. Rajasekhara Reddy told reporters.
"After taking into account the overall transactions of the year, we
will have a net surplus of Rs.134 crore (Rs.1.34 billion) The
financial year 2008-09 is expected to end with a cash balance of
Rs.120 crore (Rs.1.2 billion)," Rosaiah said.
In the last budget before the next year's elections, the Congress
government focused on welfare and development programmes and
increased allocation for key sectors.
This was the fifth consecutive budget presented by Rosaiah, who also
holds the record of presenting most number of budgets (13) in the
state.
Pointing out that the plan size of the state was the highest in the
country for last two financial years, he said during 2008-09, the
annual state plan is estimated at Rs.432.03 billion, which is
Rs.131.85 billion higher than the previous year's plan.
"This year the plan size is proposed to be 43 percent of the budget,
against 32 percent last year," he said.
He said that the transactions, as per the revised estimates of
2007-08, indicated a revenue surplus of Rs.4.51 billion against the
budget revenue deficit of Rs.360 million.
The overall transactions of the current financial year are estimated
to result in a net surplus of Rs.2.67 billion. After taking into
account the negative balance of Rs.2.81 billion, the year-end
balance is estimated to be negative at Rs.140 million.
"For the fourth consecutive year, we have been able to manage the
state finances without resorting to the ways and means advances from
the RBI (Reserve Bank of India)," he said.
"The state has earned a revenue surplus of about Rs.2,800 crore
(Rs.28 billion) for 2006-07, ending the long and unfortunate period
of revenue deficits that have adversely impacted the economic growth
for the full decade 1994-2004," he said.
Stating that the annual economic growth rate during 2007-08 was
10.37 percent against the national growth rate of 8.7 percent, he
said: "By substantially increasing the plan outlays year after year,
we stepped up the public investment in an unprecedented manner,
which is responsible for leading the state to a double digit growth
rate."
Agriculture grew by 8.38 percent against the 2.59 percent at the
national level. The industry and services sectors in the state
registered a growth of 9.88 percent and 11.57 percent respectively
as against the national growth rates of 8.90 percent and 11.73
percent for these sectors for the current year.
"Despite huge allocations for revenue expenditure like pensions,
scholarships, rice subsidy, power subsidy etc, still attaining
revenue surplus speaks volumes about this government's fiscal
prudence and discipline in the management of resources," he said.
He said the state's tax revenues during 2008-09 would increase to
Rs.378.66 billion, representing a 20.6 percent increase over the
current year.
In line with the government priorities, the finance minister has
given irrigation (Rs.165 billion) and the Indiramma housing scheme
(Rs.58.50 billion) the first and second preference in terms of
budgetary allocations.
Agriculture and allied sectors were allotted Rs.27.23 billion, which
is 144 percent higher than the current year.
Education was allocated Rs.17.71 billion, 115 percent higher than
the current year. The allocation for health was Rs.13.15 billion, up
by 73 percent over the current year. Agriculture was allocated an
outlay of Rs.16.66 billion, up by 257 percent.
Laying special emphasis on improving infrastructure, the finance
minister has allocated Rs.22.77 billion for the sector, an increase
of 73 percent.
The government has also accorded priority to the welfare sector. A
massive increase of 55 percent was provided to all welfare
departments put together.
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