Previous Budget Speeches





1982 - 83


ON THE 30 TH JULY, 1982.




I sir to present the Budget of Andhra Pradesh for the year 1982-83.

Hon'ble Members may kindly recall that in the session of the Legislature in March, 1982 a Vote-on-Account was obtained for a period of 6 moths up to September, 1982. Meanwhile, we wanted to re-orient our priorities and to reshape our programs to meet the growing needs of the people, particularly the weaker sections. I am happy to inform the House that despite the limitations imposed on us by our commitments to schemes of national priority, spill over schemes and the overall constraints of resources, we have been able to effect some changes in the plan in accordance with our new approach. The high-lights of the various schemes contained in the Budget was mentioned by me when I was presenting the 'Vote-on-Account' Budget in March, 1982. I do not propose to take up the valuable time of the Hon'ble Members by going over the same grounds again. I shall, however, indicate the changes incorporated since them. But first, I would like to say a few words about the economic situation in our State.

Economic Situation

As mentioned in my Vote-on-Account Budget speech, the year 1981-82 started with the optimism generated by the recovery of the State's economy during generated by the recovery of the State's economy during 1980-81 after the general set back in the economic situation in the country as a whole during 1979-80. The process of recovery was further consolidated during 1981-82.

The State income at current prices increased by 14.2% to Rs.7,963.45

crores in 1981-82 while at constant prices (1970-71), the State income was Rs.3,755 crores registering am increase of 8.9%. The per capita income at current prices increased to Rs.1,468 in 1981-82i.e., an increase of 11.8% while at constant (19970-71) prices, it increased by 6.6% to Rs.692 in 1981-82.

By and large the seasonal conditionals in 1981-82 were favorable due to which the production of food-grains increased to 113 lakh tonnes against 99.1 lakh tonnes during 1980-81. Due to improvement in power supply and due to better infrastructural facilities, the average index number of industrial production in the State increased to 212.1 in 1981 against 194.2 during 1980, thus showing an increase of 9.2 %. Industrial activity in 1982 is running at a higher level than in 1981, since the average index number of industrial production in the State for the period January-April, 1982 showed an increase of 24% over that corresponding period of the previous year. The labour situation in the State during January-April, 1982 indicated a marked improvement as the total number of man days lost numbered 3.75 lakhs against 9.89 lakhs

during the corresponding period of the previous year. Regarding prices, it may be mentioned that though there was an increase in the index number of wholesale prices of agriculture production from 215.1 in January, 1981 to 255.2 in August, 19881, there was a continuos decline from September,1981 and the lowest level of 215.1 was reached during March, 1982. Compared to April,1981 there is a decline by 7% in April,1982 in the wholesale price index of agriculture commodities. In March, 1982 the consumer price index for industrial working class was 448 against 459 in December,1981. Thus inflationary tendencies which adversely affect the poor to a greater extent, have been successfully curtailed.

 Re-Orientation of Plan Priorities

As I indicated when the Vote-on Account Budget was presented to the Legislature in March,1982, an attempt had been made to re-orient plan allocations to give the necessary fillip for the schemes intended for the welfare of the Weaker Sections and to provide basic amenities to the under-privileged people living in rural and urban areas. Hon'ble Members are aware of the limitations in bringing about this re-orientation. There are certain national commitments to be honored in the form of earmarked projects whose outlays cannot be altered. We also have large spill over commitments on schemes which are at a fairly advanced stage of execution .these overall constraints necessarily restrict the scope for inter sectoral adjustments within the plan ceiling. Therefore, the only alternative was to step up outlays for schemes considered essential for the welfare of the weaker sections. The State Plan has, therefore, been stepped up from Rs.610.02 crores to Rs.650.02 crores.

The increase of Rs.40 crores in the Plan outlay is on account of additional provision made for the following items:

Weaker Sections Housing Programme : 20.00

Rural Water Supply : 11.24

Rural Sanitation : 01.00

Midday Meals Programme for School children : 03.00

Attendance Scholarships for School children: 02.00

Environmental improvement of slums : 01.42

Hutting programme in urban areas : 01.00

Medical Examination for Students : 0.34

Total: 40.00

I will briefly touch upon each of the above schemes.

Weaker Sections Housing Programme in Rural and Urban Areas

Hon'ble Members may recall that during the year 1981-82, a massive housing programme was taken up to construct 10,000 houses in each district. Rs.22 crores were provided by Government as subsidy for construction of 2.2 lakh houses. During the year 1982-83 we wanted to provide houses of a more durable quality to the weaker sections so that they do not have to continue to live as the children of the sun. With this objective, we propose to take up the construction of one lakh houses at a unit cost of Rs.4,000. Out of the cost of Rs.4,000, Rs.2,000 will be provided by Government as subsidy, Rs.1,750 is the loan component from financial institutions and the balance Rs.250 is to be met by the beneficiary in the form of material, cash or labour. The subsidy element for the entire programme will be Rs.20 crores. In addition to these semi-permanent houses, we propose to take up the construction of one lakh houses at a unit cost of Rs.1,000. The entire amount of Rs.1,000 will be provided as subsidy by the Government. The outlay on account of these houses Will be Rs.10 crores making a total provision of Rs.50 crores for housing in rural areas. However, the direct expenditure of Government by way of subsidy will be limited to Rs.30 crores. Since the provision of Rs.10 crores was made in the Vote-on-Account Budget, an additional provision of Rs.20 crores is made in the final budget.

Government are aware of the growing need, for providing houses to the urban poor who are now exposed to wind and weather due to inadequate housing facilities. Municipal Corporations and Municipalities have been taking up housing programs in the urban areas by availing loans from HUDCO.

We would like to supplement the efforts of the Municipalities and Municipal Corporations and, therefore, propose to allocate Rs.1 crore for taking up houses for the urban poor.

Rural Water Supply and Sanitation

The supply of adequate and safe drinking water to the rural population of the State continues to be given the precedence it deserves.

Out of 12,269 villages, which were identified as problem villages in the State, 4,063 villages, with a population of 51.58 lakhs, were covered by the end of Fifth Five-Year Plan. The remaining problem villages numbering 8,206 with a population of 116.95 lakhs, is proposed to be covered during the Sixth Five-Year Plan period.

As against a provision of Rs.13.80 crores in 1981-82 and an outlay of Rs.18.70 crores in the Vote-on-Account Budget for 1982-83, we have decided to substantially increase the outlay for Rural Water Supply and Sanitation. The outlay proposed is Rs.30.94 crores. This is inclusive of Rs.0.55 crore which will be obtained by Gram Panchayats as a loan from Life Insurance Corporation of India for protected water supply schemes. Out of the allocation of Rs.30.94 crores, an amount of Rs.1.50 crores has been set apart for provision of sanitation in rural areas. This provision is basically meant for providing privies to ladies in the rural areas. I might add that under Non-Plan we propose to spend Rs.3.22 crores towards Rural Water Supply. Out of this, Rs.1 crore is for restoration of about 400 protected water supply schemes which were defunct for quite some time. Rs.2.22 crores is provided for repairs and maintenance of hand pumps.

Apart from the above provision, a sum of Rs.3.50 crores is expected from the Government of India for Accelerated Rural Water Supply Schemes during the year 1982-83. Adding this, the provision for rural water supply and sanitation in the 1982-83 Plan is Rs.34.44 crores. It is proposed to cover about 2,600 problem villages with a population coverage of about 33 lakhs with this outlay.

Mid-Day Meals Programme and Medical Examination of Students:

Hon'ble Members will agree with me that the health of school-going children should be given its due importance.

During 1981-82 CARE supplied cereals and oils to cover 2.05 lakhs children in the Ready-to-eat factory zone consisting of Mahabubnagar, Medak, Nalgonda and Rangareddy Districts. In the current year CARE proposes to supply only oil to cover 2 lakh children in the above districts. The full capacity of the factory is to cover 3.30 lakh children. In order to cover all the 3.30 lakhs children, the expenditure required is approximately Rs.2.20 crores. As a result of this proposed larger coverage, the Programme is proposed to be extended to the districts of Hyderabad, Nizamabad and Kurnool in addition to the districts already being covered. We also propose to cover an additional of 1.20 lakh children in the remaining 16 districts under the Upma feeding programme. As the cost per child per annum is about Rs.100, the provision required for this is Rs.1.20 crores. Thus, in all for the Mid-day meals programme, the requirement of funds is Rs.3.40 crores. In the Vote-on-Account Budget only Rs.40 lakhs was provided under Plan. It is, therefore, proposed to enhance the allocation by Rs.3 crores. This is exclusive of the Upma feeding programme run by CARE which covers 6.79 lakh children and for whichRs.52 lakhs is provided in the non-plan sector.

As a part of the package of measures intended to look after the health of school-going children, it is proposed to provide an amount of Rs.34 lakhs for the medical examination of school-going children.

Attendance Scholarships for School Children

It has been observed that the rate of drop-outs at the primary stage among the children belonging to weaker sections specially those belonging to Scheduled Castes and Scheduled Tribes has been more compared to the children belonging to other groups. It is also observed that the rate of drop-outs is still higher in the backward districts, like Adilabad, Nalgonda, Mahbubnagar and Medak. The drop-out rate in the case of girls is found to be higher than in the case of boys. One of the main reasons for the drop-outs is the poverty of the parents who are compelled to withdraw the children from the schools when they attain the age of 8 to 9 years so that the children can be gainfully employed and thereby supplement the family income. In the case of girls they are withdrawn to look after the younger children and to assist the mother in house keeping. It is, therefore, proposed to offer incentives in the form of attendance scholarships to the children belonging to weaker sections including girls studying in classes III and VII specially in the districts a minimum of 75% attendance. An amount of Rs.2 crores has been included in the budget for awarding attendance scholarships.

Environmental Improvement of Slums

Most of the slum dwellers in urban areas are rural labour who come to the city seeking employment. They live on the pavements braving the sun and rain.

In my Vote-on-Account budget speech, I had pointed out the various measures that have been taken by Government to improve the living conditions of the slum dwellers. According to a survey undertaken by the Municipalities, there are 1,387 slums in the State covering a population of 19.98 lakhs. From 1974-75 to 1981-82, 464 slums covering a population of 8.48 lakhs have been improved leaving a balance of 923 slums with a population of 11.50 lakhs. In view of the large number of slums yet to be covered under the scheme, we have decided to enhance the outlay from Rs.3.30 crores provided in the Vote-on-Account budget to Rs.4.72 crores i.e. an additional allocation of Rs.1.42 crores. With the outlay now proposed, about 2 lakh people living in about 140 slum areas will be benefited.

Non-Plan Expenditure

During the current year certain non-plan items of expenditure have become inevitable, the largest of these being the expenditure on Dearness Allowance for the employees. Against the estimated provision of Rs.37 crores made earlier in the Vote-on-Account budget towards the anticipated increase in the rates of Dearness Allowance, a provision of Rs.5.92 crores has been made in the final budget for 1982-83 on account of increase in the rates of Dearness Allowance to the employees, ad hoc increase in the emoluments of the Village Officers and Village Servants and additional relief to the pensioners by sanction of 4 installments with effect from 1 st August, 1 st October, 1 st November, 1981 and from 1 st January, 1982 respectively. However, out of this Rs.50.92 crores, a credit of Rs.11.68 crores has been taken under G.P.F. since the arrears for the period up to February, 1982 will not be paid in cash but credited to G.P.F. account in the case of employees having G.P.F. account.

Accounts 1981-82

Against the revenue surplus of Rs.81.24 crores estimated for 1981-82, the accounts for 1981-82 shows a surplus of Rs.44.04 crores. The year closed with a minus balance of Rs.11.09 crores as against minus Rs.24.95 crores estimated for 1981-82.

Budget Estimates 1982-83

As against an anticipated opening balance of minus Rs.24.95 crores as per the revised estimate 1981-82, the year started with an opening minus balance of Rs.11.09 crores as per the accounts of Accountant-General. However, actually the year 1981-82 closed with a deficit of Rs.19.15 crores, as a minus balance to the extent of Rs.8.06 crores was covered by ways and means advance sanctioned by Reserve Bank of India. According to the present estimates, the revenue surplus is Rs.81.63 crores as against as revenue surplus of Rs.110.64 crores assumed in the Vote-on-Account budget. The reduction is manly due to increase in the rates of Dearness Allowance and a step up in the Plan outlay. The year's transactions will result in a deficit of Rs.25.24 crores as against Rs.29.19 crores estimated in the Vote-on-Account budget. Hence, there is an improvement of Rs.3.95 crores. However, taking into account the opening balance of Rs. (-) 11.09 crores, the year 1982-83 will close with a minus cash balance of Rs.36.33 crores. It is expected that this deficit will be covered by further buoyancy in receipts and economy in expenditure.


Since the Hon'ble Members expressed that my Vote-on-Account Budget speech was too long. I made my speech fairly short this time.

From the brief account given by me, Hon'ble Members would no doubt discern this Government's keen desire to hasten the process of development of our State and make a perceptible dent in solving the problem of poverty. We would like to provide a house to all the homeless people in the State in the near future. We are conscious of the constitutional obligations of the State towards education and in fact would like to use education as a vehicle for social and economic transformation. With this in view, we would like to extend attendance scholarships to all children from the weaker sections of society. We are aware that formal education, as it is structured, by itself is not adequate to ensure that those who have had the benefit of education would be gainfully employed subsequently. We would, therefore, in the next few years like to lay a greater emphasis on skill formation so that the students can acquire the required skills by the time they complete secondary education and could be absorbed in productive activity after their studies. In order to do this, we would, in the near future like to lay a greater emphasis on rural industrialization so that those who acquire the necessary skills are not forced to migrate to towns and cities in search for a viable source of livelihood. We would be trying to give more attention to health than it is receiving today. These, then, represent some of the paths we would like to tread in the near future. However, we have kept the present also very much in focus and our programs are designed to uplift the poor.

To achieve our objectives we have adopted a two-pronged strategy. On the one hand, our continued emphasis on building up an infrastructure in terms of irrigation facilities and power generation would, in the long run, accelerate the developmental process. On the other hand, we have resorted to programs which would have an immediate impact in alleviating the lot of the rural and urban poor. Thus our strategy reflects the realization that development is multidimensional encompassing a range of productivity and welfare achievements. We are confident that in our sincere endeavor in the advancement of the State, we can count on the continued co-operation and active participation of the Hon'ble Members.

Sir, with these words, I commend the budget for approval by this House.