Allocations to key sectors cut down
Express News Service
Hyderabad, February 5
The global meltdown has cast a shadow on the vote-on-account presented by Finance Minister K Rosaiah to the State Assembly today.
With exports coming down and the impending danger of foreigners withdrawing from the businesses here, the Finance Minister adopted `realistic' approach while presenting the budget.
As a result, the allocations to key sectors has come down moderately in 2009-10 budget compared to 2008-09. The allocations to irrigation sector come down to Rs 14,000 crore from 16,500 crore. The allocations to Housing scheme in the latest budget was Rs 5,000 crore against the Rs 5,850 crore in 2008-09.
However, Rosaiah has the credit that the State Government could carry on its fiscal management without having to resort to `ways and means and advances or the over draft facility even once during the last five years, which was a matter of routine during the nine-year TDP rule.
``The greatest achievement of the State Government is to restore the fiscal health of the State,'' Rosaiah claimed. He said that the State had already met the targets set in the AP FRBM Act, 2005. The State earned revenue surplus for the year 2006-07 and 2007-08. As per the latest report of RBI on State finances for the year 2008-09, the State stood first in the country in respect of its allocation on plan, development, social sector and capital expenditures.
Credit deposit ratio of the banking system in the State increased from 62.8 per cent to 95 per cent from September 2003 to September 2008.
Speaking to reporters later, Rosaiah expressed apprehension that FDIs and FIIs would be reduced drastically due to the economic recession. He, however, exuded confidence that the situation would be reversed within six months and economy would revive, when the new Government presented the full budget after elections. By that time, the State would also get its share from the Centre's aid of Rs 20,000 crore to States, he said. There were also other dues from the Centre to State, he said.
Though the Finance Minister wanted to step up the plan expenditure, he could not do it. As he could not cut the non-plan expenditure like interim relief announced to Government staff. Though the State Government expected Rs 12,500 crore from land slae and other it could get only Rs 5,000 crore till date. The projected income from land sale in 2009-10 was only Rs 5,000 crore.
Despite no hopes of new income, the subsidies to PDS scheme increased from Rs 1,980 to Rs 3,000 crore and to power sector from Rs 2,385 crore to Rs 5,040 crore.
Allocation to various sectors (Rs in crore).
Sector --- 2008-09 --- 2009-10
Irrigation -- 16,500 14,000
Housing 5,850 5,000
Panchayat Raj and Rural development - 3,830 4,505
Education 1,771 1,751
Medical and Health 1,315 - 1,214
Agri and allied sectors 2,277 - 1,415
Infrastructure 1,914 - 1,461
Energy 363 - 753
Labour and employment 177 - 101
Plg dept 1,210 - 692
Social Welfare 1,293 - 1,159
Tribal welfare 440 - 405
BC welfare 353 - 1,010
Minority welfare 177 - 177
Women and Child welfare 656 - 638
IT 397 -- 333
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