Introduction
Sir,
I rise to present the Budget of Andhra Pradesh for the year 1978-79.
Hon’ble Members may kindly recall that in the brief Session of the Legislature in March, 1978, a Vote-on-Account was obtained for a period of six months to enable this Government to reorient the budget to meet the aspirations of the people who had voted us into power. I had at that time outlined in detail the direction in which we would like to reshape our programmes to meet the growing demands of the people particularly the weaker sections. I am happy to inform the House that in spite of the limitations imposed on us by our commitments to schemes of national priority, the spill-over schemes and the overall constraints of resources we have been able to revise in a substantial measure, the priorities of the plan to be in keeping with our new approach. I shall refer to the changes brought by us at some length after reviewing the economic situation obtaining in our State.
Economic Situation
I may recall for the information of the Hon’ble Members the review of the State’s economy given by me in my Vote-on-Account budget speech. I referred to the severe set back in our Agricultural production in 1976-77 due to three successive cyclones that hit the coastal areas and the drought conditions in large tracts of the rest of the State. The foodgrains production in 1976-77 declined to 74.79 lakh tonnes compared to 94.28 lakh tonnes during 1975-76. In 1977-78 the weak South West monsoon followed by failure of rains in September, 1977 and an unprecedented cyclone and tidal waves in November in the Coastal districts made us believe that the agricultural output would be depressed. In spite of these reverses in the Khariff season, however, I am glad to inform the Hon’ble Members that a substantial recovery was made by the intensive Rabi Production Programme resulting in a total foodgrains production of 86.60 lakh tonnes representing a 15.8% increase over the previous year. Though this output is nowhere near 94.28 lakh tonnes reached in 1975-76 it would only show the recovery the economy has made on the agricultural front after the setback received in 1976-77 and in Khariff 1977. In the current year the South West monsoon has been active and with the favourable conditions so far obtaining it can be hoped that we will achieve the targeted production of 98 lakh tonnes.
The State income which declined to Rs. 1499 crores in 1976-77 from Rs. 1601 crores in 1975-76 has improved to Rs. 1621.23 crores during 1977-78 registering an increase of 8.2% over the previous year. The inflationary pressures that gripped the economy in the second half of 1976 and continued in the first half of 1977 have considerably eased towards the later half of 1977. The wholesale price index which reached the peak level of 178 in July 1977 has cone down to 158.4 in March 1978. It has further fallen to 154.4 in the months of April, May 1978. A careful watch is however being kept on the price situation to take corrective steps whenever necessary.
Reorientation of Plan Priorities
As I had mentioned earlier an attempt had been made to orient the plan to give the necessary fillip to schemes intended for the welfare of the weaker sections, to tackle the problem of unemployment and to provide basic amenities to the under privileged people living in rural and urban areas. The limitations in bringing about this reorientation are well known. We have certain national commitments to be honoured in the form of World Bank aided projects whose outlays cannot be altered, large spill-over commitments on schemes already initiated and at a fairly advanced stage of execution and inevitable commitments on maintenance of assets and services. In view of these over all constraints, it was decided that any significant intersectoral adjustments within the Plan ceiling would not be possible and that the only alternative was to step up outlays for schemes considered essential for the weaker sections. The State Plan has therefore been stepped up from Rs. 449 crores to Rs. 477.57 crores, an increase of Rs. 28.57 crores out of which Rs. 19.10 crores go to schemes intended for weaker sections and provision of basic amenities. This is in addition to Rs. 16 crores already available in the Vote-on-Account Budget for similar schemes. Thus the allocation for these programmes would be of the order of Rs. 35 crores and some of these programmes are so oriented as to attract support from financial institutions of the order of Rs. 23 crores. Thus with the budgetary allocations and the likely advances from financial institutions the expected outlay on these programmes would be Rs. 58 crores.
I shall briefly indicate some of the important schemes for which outlays have been provided in the present budget for the first time and schemes for which additional funds have been provided to accelerate the pace of the programmes.
Weaker Sections Programme
Hon’ble Members are aware that the policy of this Government is to improve the lot of the weaker sections of the society specially the Scheduled Castes, Scheduled Tribes and Backward Classes. We are of the view that significant improvement in their condition can be brought about by improving the economic base of these communities while affording at the same time basic facilities like provision of house-sites, sanction of scholarships to promote education among them and creation of a proper climate for studies by way of construction of hostels etc. The outlay for the welfare of Harijans, Backward Classes and Scheduled Tribes has therefore been increased by Rs. 510 lakhs from Rs. 832 lakhs to Rs. 1,342 lakhs.
The allocation now for Harijan Welfare is Rs. 690 lakhs compared to Rs. 360 lakhs provided in the Vote-on-Account Budget. Out of this additional amount, Rs. 60 lakhs will be placed at the disposal of the Scheduled Castes Co-operative Finance Corporation to be given as margin money to its members for raising loans from Banks to pursue economic activities. The enrolment of the students in the Government hostels has been increased last year and to cater to the additional dietary charges an additional provision of Rs. 75 lakhs has been included in the Budget. Government is also contemplating to sanction scholarships for the children of Scheduled Castes who get admitted in the 1st and 2nd standards. An additional provision of Rs. 75 lakhs has been made in the Budget to meet the expenditure on this item. A detailed scheme is being finalised in this regard. Large areas of Government land have been assigned to the members of the Scheduled Caste community. To improve the cropping pattern and make farming a self sustaining operation, it is proposed to sanction construction of irrigation wells in the lands assigned to this community. Rs.40 lakhs have been earmarked for this purpose in the Budget. In my speech on the Interim Budget I had mentioned a scheme of attracting bank loans for construction of Scheduled Castes hostels. To attract more loans from Banks, Rs. 30 lakhs have been additionally provided in the Budget. The programme of acquisition of house-sites has gained tempo. In some cases in order to make the lands already assigned useful for occupation some levelling etc., has been found to be necessary. To meet these contingencies and due to increased demand, Rs.100 lakhs has been provided in addition to Rs. 500 lakhs already included in the Budget.
The allocation for schemes intended for the Backward Classes has also been stepped up by Rs. 130 lakhs bringing the outlay to Rs. 355 lakhs. Rs. 60 lakhs out of this increased allocation will be given to Backward Classes Co-operative Finance Corporation for sanction of margin money to the members of this community. Rs. 30 lakhs have been provided for construction of hostels and Rs. 40 lakhs for construction of irrigation wells in the lands assigned to these communities. The allocation for Tribal Welfare has been stepped up by Rs. 50 lakhs of which Rs. 30 lakhs is intended for the Secheduled Tribes Co-operative Finance Corporation and Rs. 20 lakhs for irrigation wells in the assigned lands. The outlay for Tribal Welfare will thus be Rs. 297 lakhs.
Employment Programme
Hon’ble Members will agree that unemployment is one of the most pressing problems deserving immediate attention and concerted remedial action. The solution for this problem lies in judicious investment of our resources in areas which would generate maximum employment. As you are aware massive investments are being made in Irrigation and Power Sectors which create employment for skilled, semi-skilled and un-skilled labour. While this programme may to some extent improve the position in respect of rural areas, the problem of providing employment to the educated unemployed in urban and semi-urban areas still remains. Direct employment by the State can never solve this problem since this will be neither economic nor will the State Government ever have the resources for it. What is required is the identification of employment opportunities in the economy as a whole and the provision of the training and the initial capital necessary for exploiting such opportunities.
It is with this background that schemes are being formulated to impart the skills required to the educated unemployed in areas where there is scope for absorption in existing or likely vacancies or where avenues exist for pursuing useful trades under self-employment programmes with margin money provided by the Government and the Banks financing capital expenditure and working expenses. Budgetary allocations have been made to the extent of Rs. 1 crore for imparting training and Rs. 1 crore as seed money to attract institutional finance. This programme will initially be taken up to cover all the Scheduled Castes and Scheduled Tribe persons, a fair percentage of Backward Classes and a few economically poor persons who are matriculates or above.
Welfare of Physically Handicapped
The Welfare of physically handicapped among the weaker sections has also to be ensured. To improve their conditions the allocation for this programme has been raised to Rs. 30 lakhs from Rs. 5 lakhs provided in the Interim Budget. With these additional funds it is proposed to provide artificial aids to the handicapped and also extend economic support programmes to enable them to make a living.
A Hon’ble Members are aware, begarry has been abolished by passing suitably legislation. But this is a social phenomenon that cannot be erased by legislation alone. To rehabilitate beggars it is proposed to open Work House, Homes for the aged and disabled and destitutes. A provision of Rs. 25 lakhs has now been made for this purpose.
Fisheries
In the fisheries sector our aim is to exploit the vast sea coast through mechanisation of the fishing industry while protecting at the same time the small fishermen inhabiting the coast form exploitation by the middlemen and traders. I am happy to inform the Hon’ble Members that the World Bank has approved our Integrated Marine Fisheries Project with a total outlay of Rs.31.36 crores. This project envisages construction of fishing harbours at Visakhapatnam, Kakinada and Nizampatnam to provide additional landing and berthing facilities and for improving marketing arrangements by establishing a chain of freezing plants and other storage facilities. The Project also contemplates laying of feeder roads over a distance of 215 K.Ms. to connect a number of outlying fishing villages. Implementation of this Project will create a demand for technical persons for handling mechanised boats. In order to cope with this demand a Marine Fisheries Training Centre is proposed to be opened at Machilipatnam this year.
I have already referred to our anxiety to improve the economy of the traditional fisherman and free him form the clutches of the middleman. We propose to distribute on a subsidised basis improved craft and tackle to improve the fish catch and to establish a chain of cold storage plants where fish can be preserved to avoid possible distress sales. A Plan has also been drawn to popularise brackish water fish farming by extending subsidy for construction of fish farms in areas covered by brackish water.
Urban Development and Environmental Improvement
The rapid urbanisation witnessed in our State in the last two decades calls for a machinery to regulate orderly development of our towns. Government therefore have constituted an Urban Development Authority for Visakhapatnam. The Government have also notified a development area for Vijayawada, Mangalagiri, Guntur and Tenali Urban Complex and the Urban Development Authority for this area will also be constituted in due course.
The growth of urbanisation has brought in its wake slums. The Environmental Improvement Scheme under the Minimum Needs Programme aimed at provision of basic civic amenities like drinking water, roads drainage and sanitation has so far been limited to municipalities with a population of more than three lakhs. This scheme has now been extended to all municipalities in the State and the outlay has been raised from Rs.52 lakhs to Rs. 202 lakhs.
Rural Water Supply
One of the basic needs of society is safe drinking water. With a view to intensify this activity the budgeted outlay has been increased to Rs. 725 lakhs by providing Rs. 300 lakhs additionally. To augment the fleet of rigs for digging bore wells it is proposed to give Rs. 100 lakhs out of this amount to the Andhra Pradesh Irrigation Development Corporation which will raise Rs. 300 lakhs through financial institutions for this purpose. Intensive utilisation of ground water is resulting in lowering of water levels in wells which is affecting drinking water sources in some areas. Therefore to augment water supply in the existing wells percolation tanks will be constructed in selected basins. For this purpose an allocation of Rs. 50 lakhs has been made.
Transport and Communications
With a view to provide a net work of communications to connect various villages an additional outlay of Rs. 120 lakhs has been made increasing the allocation for roads from Rs. 980 lakhs to Rs. 1,100 lakhs. Hon’ble Members are also aware of our connect various villages to the nearest market centres, taluks and district headquarters through a net work of transport system. To enable the Road Transport Corporation to augment its fleet so as to serve some of these areas a sum of Rs. 50 lakhs has been additionally provided in the Budget. However as it would not be possible for the Corporation alone to realise this objective, we are also contemplating a system of incentives to private operators to take up additional routes, so that such isolated villages are served by them till such time as the Road Transport Corporation is in a position to take over all the routes.
Industries
I have stressed on earlier occasions the need for our State to industrialise so that our economy which was hitherto agriculture oriented becomes more balanced. The provision for Industrial Infrastructure etc., had been made in the earlier Vote-on-Account Budget itself. A greater effort is however now needed for an effective promotion of Cottage and Small industries with proper dispersal in the rural areas so as to reduce regional imbalances. The allocation for Rural Industries and Self Employment Schemes has therefore been increased by Rs. 75 lakhs. However this ideal may be difficult to achieve as long as the focal point for providing impetus to industrial development remains the Capital City. The common compliant also often heard is that entrepreneurs have to knock at the doors of a plethora of agencies, each acting independent of the other resulting in the slow pace of development and avoidable frustration to the entrepreneur. To shift the scene of industrial activity to different corners of the State and to provide under a single roof all services and support required by small entrepreneurs it is proposed to set up District Industries Centres in eleven districts immediately and in the rest of the districts in due course.These Centres will monitor both regulatory and promotional activities thus providing an integrated package of services for the aspiring industrialists.
Handlooms
Rs.25 lakhs have been provided additionally to the Handloom sector, a part of which will be given to APCO to enable it to avail itself of National Co-operative Development Corporation assistance for various schemes designed to improve marketing facilities.
Hon’ble Members are aware of the State Government’s intention to participate in the equity capital of the Nagarjuna Fertilisers and Chemicals Limited. The estimated cost of the project is Rs.232 crores and it is designed to produce 4.95 lakh tonnes of Urea with an estimated annual realisation of Rs. 90 crores. A provision of Rs.3 crores has now been made to meet further commitments of the State towards share capital for this Company. Rs. 1 crore has also been provided additionally for meeting the needs of various Public Sector Undertakings and State Sponsored Corporations.
Education
Hon’ble Members are aware that we have been investing large sums of money for creating facilities for education, as a result of which there has been a phenomenal growth of primary and secondary schools. The quantitative increase has however not been matched with qualitative improvement because of some essential facilities like equipment, buildings, and play grounds not being provided. The need for qualitative improvement in primary education has therefore been exercising the mind of this Government for some time and it has been decided to set up an independent organisation called ‘Abhyudaya Pradhamika Vidya Samstha’ with the necessary flexibility to improve Primary Education. This organisation will provide the much needed inputs by tapping funds of various Religious and Charitable Institutions and munificient public in addition to the funds that flow from the State Government. It is proposed to handover 600 schools to this organisation initially to provide proper building facilities, play-grounds, equipment and teachers specially trained to impart both formal and moral education. It is hoped that this organisation would bring about the much needed reform in education so necessary for an all round development of our children.
Medical Services
In the field of Medical Services our twin objectives are provision of the highly specialised services in the State and provision of basic health services as near the door steps of the rural masses as possible. It is with this objective that funds are being invested in the Nizam’s Orthopaedic Hospital for developing various specialities while simultaneously attempting upgradation of the existing taluk level hospitals. A provision of Rs.107 lakhs has been made available for Nizam’s Orthopaedic Hospital. To cater to the needs of the public who have the means to pay for the extra facilities and services provided in Government hospitals a pilot scheme has been initiated in Osmania General Hospital to provide certain extra facilities and round the clock services for the in-patients on a payment basis. Depending upon the response for the scheme it is proposed to further extend the scope of the scheme to cover the remaining teaching hospitals. A scheme is also being taken up for the establishment of new dispensaries and for construction of buildings for various medical institutions in the districts such as Taluq Hospitals, Primary Health Centres, Sub-Centres etc., on a donation basis, with Government providing matching contribution. For this purpose and for other medical facilities an additional provision of Rs.93 lakhs has been made.
Youth Welfare, Tourism, Sports and Women Welfare
While presenting the Interim Budget I referred to the need for increasing the outlays for Youth Welfare and Welfare of Women and Children. I am glad to inform the House that the outlay for Youth Welfare has been increased to Rs.32 lakhs from Rs.7 lakhs provided in the Vote-on-Account Budget. In the case of Women and Child Welfare we have stepped up the outlays from Rs.55.15 lakhs to Rs.130.15 lakhs representing an increase of Rs.75 lakhs. The outlay for Sports and Games has been increased by Rs.35 lakhs in this budget. Tourism has been provided an additional amount of Rs.10.43 lakhs.
Other Plan Increases
Besides the above increases, two other large increases in the Plan allocations over the Vote-on-Account Budget are Rs.231 lakhs for Co-operation and Rs.200 lakhs for Power. The Reserve Bank of India has released certain amounts from the Long Term Operations Fund for contribution by the State as share capital to Co-operative Credit Institutions. Rs.231 lakhs out of such releases have now to be released by the State Government to the respective co-operative institutions and as such provision has been made for this in the Plan. As Hon’ble Members are aware, as part of our agreement with the Orissa Government we had agreed to increase our share in the cost of the Balimela Project. To meet this commitment an additional amount of Rs.200 lakhs has been allocated under the Power Sector.
Annual Plan 1978-79
With the above additional allocations the total outlay on the Plan goes up from Rs.449 crores which was approved by the Planning Commission and included in the Vote-on-Account Budget to Rs.477.57 crores in the present Budget. Rs.449 crores itself was the highest Plan outlay that we had ever had and was equal to the total outlay on the Fourth Plan of our State. The present outlay is Rs.28.57 crores above the previous one. Since the increased outlays are mostly in the Social Services Sector, one result of this increase is that the total outlay for Social Services which was 11.5 per cent in the Vote-on-Account Budget now goes up to 14.3 per cent in the present Budget thus showing that we have made a beginning in the reorientation of Plan priorities.
In my Vote-on-Account Budget speech I had given details of the allocations of various sectors. I do not propose troubling the Hon’ble Members by repeating those details now since, except to the extent that I have described above, there have been no significant changes in the allocations in the Plan for the other sectors. I have therefore confined myself to dealing with, at some length, the additional allocations made by us, so that the Hon’ble Members may have an idea of the areas in which allocations have been increased and the manner in which we have tried to fulfil our earlier commitment to reorient the Plan priorities with a view to seeing that the allocations for the weaker sections and for Social Services are increased. Further details regarding plan allocations have been separately furnished to the Hon’ble Members as part of the Budget papers.
Six Point Formula Schemes
As I had mentioned in my earlier speech the Budget also includes a provision of Rs.18 crores towards the Six Point Formula Schemes in the current year. Besides this a provision of Rs.1.68 crores has been made for revalidation of amounts sanctioned in earlier years and not yet spent. Similarly, a provision of Rs.4 crores has been made for Six Point Formula Schemes in the Twin Cities. As Hon’ble Members are aware, the Planning and Development Committees for the three regions have been recently reconstituted and all three of them are scheduled to meet shortly when they will consider the detailed allocations for their respective regions. If as a result of the recommendations of these Committees, any changes in the inter-se allocations become necessary these can be carried out at the time of the Supplementary Estimates.
Cyclone Relief
I had informed the Hon’ble Members at the time of presenting the Interim Budget that the Government of India have sanctioned Advance Plan Assistance of Rs.56.52 crores last year for undertaking relief measures to the cyclone victims and to repair the assets damaged due to cyclone. I am glad to inform the House that the Government of India have sanctioned a further assistance of Rs.11.46 crores in the current year for continuing the works started last year. A large portion of this amount viz., Rs.325 lakhs has been earmarked for raising the height of the tidal banks above the pre-cyclone level in Krishna District to effectively prevent tidal waters from entering the habitations on the coast. The total allocation now made for cyclone relief in the Plan is Rs.12.11 crores consisting of Rs.11.46 crores of the current year’s advance Plan assistance and Rs.65 lakhs of the unspent balance of last year.
Institutional Finance
I had referred to the role of Institutional Finance while dealing with various developmental activities specially welfare of the Weaker Sections. The Cell on Institutional Finance constituted in the Planning Wing under the supervision of the Commissioner of Institutional Finance has helped in the preparation of the credit plans for all the Districts in our State. The District Credit Plans are now being implemented and the progress made in the sanction of loans by various banks located in the district is being constantly reviewed by the District Consultative Committee under the Chairmanship of the District Collector. As a result of constant liaison with various financial institutions we have succeeded in persuading the banks to open branches in 277 rural unbanked centres, 183 in semi-urban centres and 150 in urban and metropolitan areas between 1974 and 1977. The advances by the Commercial Banks have also improved from Rs.376.90 crores in June, 1974 to Rs.621.67 crores in March, 1977. As the credit plans have been prepared and the progress of sanction of loans by the banks is constantly under review at the District and State level, we hope that there will be no difficulty in institutional support of the order anticipated by us being available.
Land Ceilings
As the Hon’ble Members are aware, the Land Ceilings Act has been under implementation since 1975. The extent of land so far taken over under the Act is 2.95.221 acres. A large extent of land though determined as surplus is covered by appeals. The Government are keen to expedite this work and have constituted additional Appellate Tribunals for this purpose.
Successive Governments have launched programme of distribution of Government land to landless poor. In a number of cases lands assigned have not been delivered to the assignees. The land possession fortnight was therefore observed from 1st June to give necessary impetus to the programme of giving physical possession to the beneficiaries who were assigned lands either from the surplus land available under the Ceiling Act or the Government waste land. As a result of observance of this fortnight an extent of 1,32,446 acres has been handed over to 73,847 assignees for cultivation purposes. House-sites have also been handed over to 65,983 beneficiaries covering an extent of 4,837 acres. We are aware that the success of the fortnight should not lead us to complacence. It is a continuous effort and the Government will keep a keen watch over the progress of this measure.
Non-Developmental Expenditure
Having given a brief outline of the developmental efforts of the Government, I shall now indicate some of the non-developmental expenditure now proposed in the Budget. While we are conscious that every effort should be made to economise on non-productive expenditure there are certain inevitable commitments which cannot be ignored.
Increase in D.A.
As Hon’ble Members are aware the State Government sanctioned further increase in D.A. from 1st April, 1978 consequent on a similar increase earlier sanctioned by the Government of India. This measure has cost the exchequer Rs.5.50 crores which has now been included in the Budget.
Other Items
I may recall that as a humanitarian gesture the State Government have reinstated many prematurely retired Government servants. The additional expenditure as a result of their reinstatement is nearly Rs.75 lakhs which finds a place in the Budget.
The Government have, as you are aware, reduced the voting age from 21 to 18 years for elections to local bodies. This has necessitated fresh preparation of electoral rolls. For this purpose Rs.100 lakhs have been provided in the budget.
The primacy of an effective modern police force needs no special emphasis. To strengthen the police force additional funds of the order of Rs.30 lakhs have been provided over and above Rs.50 lakhs provided for this purpose in the Vote-on-Account Budget.
There is a persistent demand to provide proper accommodation and reading material for Zilla Grandhalaya Samsthas to attract the reading public. To meet this demand Rs.24 lakhs have been provided as grant to these organisations for construction of libraries and purchase of books.
As Hon’ble Members know we are constructing a modern guest house at Delhi to provide accommodation for those who visit Delhi. An additional provision of Rs.25 lakhs has been made to accelerate the pace of construction.
As the Hon’ble Members are aware certain concessions regarding land revenue for small farmers had been announced in the Governor’s address during the March Session. As a result of these concessions it is estimated that the reduction in land revenue will be Rs.3.67 crores which has been taken into account in our estimates.
Having given a brief account of our developmental and non-developmental expenditure I shall briefly describe the financial position of the State as reflected in the accounts of the year 1976-77, Revised Estimates of 1977-78 and the Budget Estimates of 1978-79.
Accounts 1976-77
The Revenue surplus during the year was Rs.110.86 crores against the anticipated surplus of Rs.48.43 crores in the Revised Estimates. This improvement in the revenue surplus is attributable to buoyancy in our tax revenues and shortfall in expenditure under elections, land revenue etc. The closing balance of the year was plus Rs.55.67 crores.
Revised Estimates 1977-78
The Revised Estimates provide for a revenue deficit of Rs.19.47 crores compared to the budgeted revenue surplus of Rs.60.70 crores. This deterioration in revenue account was partly due to steep fall in receipts under Land Revenue and Sales Tax, as a result of Cyclone and due to increased expenditure on restoration of assets damaged by the cyclone and relief extended to the victims. The year was expected to close with a minus balance of Rs.20.47 crores against the budgeted closing balance of minus Rs.61.86 crores. This improvement is mainly due to improvement in the opening balance of the year.
Budget Estimates 1978-79
As against an anticipated opening balance of minus Rs.20.47 crores as per Revised Estimates 1977-78 the year started with an opening minus balance of Rs.11.28 crores as per accounts of Accountant-General. This figure is adopted in the Budget 1978-79 to make the budget more realistic.
According to the present figures the revenue surplus will be Rs.28.34 crores against a revenue surplus of Rs.28.92 crores assumed in the Vote-on-Account Budget. There is only a marginal reduction. In spite of the Plan outlay being substantially stepped up and the additional items of non-developmental expenditure which I have mentioned earlier, we are able to maintain this position because we have effected non-plan economy in the Budget estimates in sectors where such economy was possible. The capital expenditure has been increased from Rs.244.84 crores to Rs.262.32 crores as a result of increase in the Plan outlay and provision of additional funds for fertiliser transactions etc. The overall transactions for the year now will show a deficit of Rs.63.13 crores. The year is thus expected to close with a minus balance of Rs.74.41 crores after taking into account the opening minus balance of Rs.11.28 crores. This deficit has to be covered by better collection of revenues specially the arrears which have shown a tendency to increase, further economy in non-plan expenditure and additional resource mobilisation.
Conclusion
Hon’ble Members may see that our Plan has been on the increase in the last 5 years. From the modest expenditure of Rs.93.59 crores in the last year of the Fourth Five Year Plan, the Plan outlay has risen to Rs,477.57 crores in the current year i.e., this year’s Plan is five times the Annual Plan at the end of the Fourth Five-Year Plan. This outlay, as I have mentioned is more than the total outlay for our State in the entire Fourth Five-Year Plan has crossed Rs.1,500 crores against the approved outlay of Rs.1,333 crores. This substantial increase has been made possible because of continued buoyancy in our tax and non-tax revenues and massive efforts put in for raising additional resources. The Planning Commission have called for proposals for the Medium Term Plan for the years 1978-79 to 1982-83. We have projected an outlay of nearly Rs.4,000 crores based on the level reached in the current year, our existing commitments and future developmental programmes. The Planning Commission have however indicated an outlay of only Rs.2,000 crores. We hope we will succeed in convincing the Planning Commission of the need for approving an outlay considerably higher than this and not less than at least twice the Fifth Five-Year Plan expenditure in our State. The ultimate decision will however depend upon the availability of resources.
The National Development Council is scheduled to meet next week "to review the fiscal arrangements between the States and the Centre, having regard to the provisions of the Constitution, in the light of the larger role to be assigned to the State Governments in the next five years in developmental planning and execution" as well as to review the working of the Gadgil Formula. The decision of the National Development Council will have an important bearing on the resources that would be available for the next Medium Term Plan. It is our case that there is scope for a much larger transfer of resources from the Centre Plan transfers. But however large such transfer may be, ultimately, there is an effort at resource mobilisation that the State itself will have to put in. During the Fifth Plan period we raised resources of Rs.401 crores against an original target of Rs.250 crores. This is one of the main reasons for our sound financial position during the last few years and for the large set up in the plan outlays from year to year that I have mentioned earlier. A similar effort will be required during the next Medium Term Plan period also if our hopes and aspirations in regard to the increasing developmental outlays are to be fulfilled.
Development benefits various sections of the people. While the weaker sections may still be not in a position to make a contribution towards such an effort, in view of the low level of their present economic standards, the more well-to-do sections who gain from the developmental process and who have, in fact, hitherto been gaining more than a proportionate share will necessarily have to make their contribution towards our future developmental efforts. The proper utilisation of the resources so raised also calls for a great degree of administrative efficiency and dedicated effort. In both these tasks, viz., of raising the requisite resources and of utilising them properly we will require the co-operation of all sections of the House, which, I am sure, we will have in full measure as all of us are interested in the ultimate goal of bringing about the development of our State in general and of the weaker sections in particular.
Sir, with these words, I commend the Budget for approval of this House.
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