The Andhra Pradesh government’s budget for the year 2017-18 has given importance to education, infrastructure and rural development, and also made provisions to assist the unemployed youth by allocating a sum of Rs 500 crore towards it. For its prestigious Amaravati capital city project, the AP government has proposed Rs 1,061 crore for developmental operations.
Presenting the budget, Yanamala Ramakrisnadu, finance minister, said that the state re-organisation had put tremendous stress on the financial and other resources. The state has allocated Rs 9,091 crore constituting 5.79% of the total budgetary allocation to agriculture and allied sectors, Rs 19,565 crore to rural development which is 12.46% of the total budgetary allocation, and Rs 12,770 crore to irrigation sector.
The state has proposed an expenditure of Rs 1,56,999 crore, with revenue expenditure estimated at Rs 1,25,912 crore and capital expenditure at around Rs 23,078 crore for the financial year 2017-18. The budget estimates entail an overall increase of around 15.70% over the 2016-17 budget estimates with rural and agriculture sectors getting huge share of Rs 8,790 crore.
You may also like to watch:
While the revenue expenditure is estimated to increase by 10.28%, the capital expenditure is estimated to grow by 44.54% over the 2016-17 financial year. The estimated revenue deficit is around Rs 416 crore and the fiscal deficit is estimated at around Rs 23,054 crore. The fiscal deficit will be around 3% of the GSDP, whereas the revenue deficit would be around 0.05% of the GSDP.
An amount of Rs 4,311 crore has been proposed for the energy and infrastructure department, which includes power subsidy to the agriculture sector. “Despite the state inheriting a huge revenue deficit, the government stood by its commitment and disbursed Rs 11,000 crore to 55 lakh farmers’ accounts till date. This is a defining moment as no government in the country have ever embarked on loan redemption of such magnitude regardless of the economics of this socially relevant measure under difficult and harsh circumstances. We are proposing Rs 3,600 crore in the current budget of 2017-18 for the next instalment of debt redemption for farmers. We are proposing Rs 7,342 crore for agriculture development,’’ the minister said.
As per advanced estimates, agriculture and allied sectors have shown a phenomenal growth of 14.03% during the financial year 2016-17. Fisheries with 30.09%, Livestock with 12.18 % and horticulture with 16.79% have strengthened the performance of agriculture sector. Industrial sector recorded a growth of 10.05% and services grew at 10.16% during the year.
Meanwhile, the AP government is taking steps to develop robust infrastructure to promote manufacturing. Andhra Pradesh has two large industrial corridors viz. Visakhapatnam–Chennai Industrial Corridor (VCIC) and Chennai–Bengaluru Industrial Corridor (CBIC). An amount of R369 crore has been proposed to industries department and R73 crore to the R&B department for VCIC in the financial year 2017-18.
The Andhra Pradesh Industrial Corridor Development Authority 14 (APICDA) will be established shortly to manage industrial infrastructure development under single umbrella entity. An amount of R2,086 crore has been proposed for the industries department. The allocation for industrial sector has been increased by a substantial 113% over the last year.
The state has envisaged IT exports worth R570 crore during the year. About 33 start-ups are promoted in the two incubation towers. The state government has proposed 9 electronic manufacturing clusters and allotted 1,526.12 acres of land for this purpose.