Caution and pragmatism are what going to dictate the Andhra Pradesh budget outlay for 2015-16 and it is likely to be pegged around the last year figure of 1.11 lakh crore and on the high side may not cross Rs.1.15 lakh crore.
After the tough wait it had to endure for flow of funds from the Centre in vain in the current financial year, revenue shortfall and mounting non-plan expenditure on account of 43 per cent fitment under 10{+t}{+h}PRC, Telugu Desam government toned down the budgetary allocations.
In line with its stand that the irrational and unscientific bifurcation had cost the State dearly with only 42 per cent of united State revenue for a population share of 58 per cent, State’s budgetary allocations would be in tune with the reality.
One should not be surprised if A.P.’s outlay will be less than the smaller State of Telangana.
The fact that the 14{+t}{+h}Finance Commission was silent on special award sought by the State on account of bifurcation and loss of revenue rich Hyderabad to Telangana and winding up of some Centrally sponsored schemes and reduction in Central share in some other schemes, had its impact on final figures of budget outlay, sources said.
The revenue deficit continues to hover around Rs.20,000 crore but Rs.6,600 crore grant-in-aid for revenue deficit sanctioned to the State by the 14{+t}{+h}Finance Commission for 2015-16 and overall Rs. 22,113 crore for the next five years in concrete terms would be of some help.
The government is likely to give maximum allocation to education even this year, around Rs.18,000 crore followed by health sector at around Rs.15,000 crore and capital expenditure may be at about Rs.10,000 crore. Out of State’s direct revenue of Rs.44,000 crore, government is worried that Rs.42,500 crore would go for salaries and pension bill and hopes to mop up more money through non-tax revenues and ensuring better compliance. However A.P. got better share in Central taxes compared to Telangana. Compared to last year’s plan allocation of Rs. 26,000 crore, and non-plan allocation of Rs. 85,000 crore, effort would be to increase plan allocation in next fiscal. With the Centre to fund Polavaram and capital city,
State would focus on irrigation giving priority to projects nearing completion, agriculture, loan waiver and power subsidy.
