Faced with the twin challenges of precarious financial situation post bifurcation and compelling need to rebuild the State, Finance Minister Yanamala Ramakrishnudu will be presenting the first budget for the Andhra Pradesh State for 2014-15 in the Assembly here on Wednesday.
As part of the exercise to keep the budget need-based and realistic, the budget being presented by the Telugu Desam government after a gap of 10 years is expected to be slightly above Rs.1 lakh crore, with the plan allocation to be around Rs.22,000 crore to 24,000 crore and the non-plan around Rs.80,000 lakh crore.
Sources said government would be according priority for fiscal prudence to bring the State facing revenue, fiscal and prospect of high borrowings back on track while making allocation for capital expenditure to rebuild the State.
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The State is banking on the promise of the Centre to make up for the revenue deficit of Rs.16,000 crore due to State division in its plan allocation.
Acutely aware of the loan waiver burden expected to be around Rs.45,000 crore, government will be making allocation of about Rs.5,000 crore to Rs.6,000 crore for the loan waiver to farmers, SHGs and others in the budget. It will be making allocations promises made in the manifesto and new schemes like Anna canteens, NTR Sujala Sravanthi, with participation of civil society and corporate sector.
Provision will be made for releasing matching grant under various Centrally sponsored schemes and utilise the Central grants fully, sources added.
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While Mr. Ramakrishnudu would present the tax-free budget in the Assembly at 11 a.m, Municipal Administration and Urban Development Minister P.Narayana will present the budget at 11.30 in the Legislative Council. “Government cannot further burden the people who are already paying high rate of VAT,” sources added.