Previous Budget Speeches



Speech of

Sri Nadendla Bhaskara Rao

Hon'ble Finance Minister while Presenting

The Budget for 1983-84

To The Andhra Pradesh Legislative Assembly

on 12th August, 1983.



I rise to present the Final Budget of Andhra Pradesh for the year

Hon’ble Members may kindly recall that I had presented the Vote-on Account Budget for 1983- 84 in March, 1983 and at that time I had assured the Members that I shall come before the Legislature again later this year with the Final Budget. I have great pleasure in presenting the same now.

The people of our State have reposed immense confidence in the Telugu Desam Party and have elected us to shoulders the responsibility for managing the affairs of our State. We are grateful to the people for having so overwhelmingly reaffirmed their confidence in our Party by returning Telugu Desam candidates with yet another massive mandate in the recent by-elections. It is, therefore,our endeavour to give concrete shape to their aspirations and take our State forward along the path of development.

Hon’ble Members are no doubt aware of the problems we have to face in our effort to bring about an accelerated pace of development and above all clean administration.

A stringent financial situation was inherited by us

when we took over the feigns of Government early this year. It was with utmost vigilance and strict measures of economy that we were able to tide over the rather difficult situation.

As the Hon’ble Members are aware, six months is too short a time for a Government to bring about all the changes that it intends to usher in. I am confident, however, that our Government’s performance in this regard has been administration, providing a hope to the unemployed, supply of drinking water in the drought affected areas, supply of rice to the needy etc,

Nonetheless, in keeping with our promises to the people, to bring the fruits of development to the poorest of poor and spread the benefits to the remotest parts of our State, we embarked upon a large plan of Rs. 826 crores notwithstanding the difficult financial situation confronted by us. We have given further serious consideration to the views expressed by many of my friends here during the discussion on Vote-on-Account Budget and we have done our best to increase the Plan Outlay significantly to Rs. 896 crores. A major part of the increased allocation for Irrigation has been stepped up by Rs. 80 crores and that of the Power sector by Rs. 15 crores and that of the Power sector by Rs.15 crores. The overall increase in Plan Outlay over the revised estimates of 1982-83 is Rs.266 crores, that is, a sharp setup of 42% which is unprecedented.

Our Government have also in pursuance of our promise to make available houses to the Weaker Sections, taken up a massive programme for construction of 2.20 lakh permanent houses at an estimates cost of Rs.142 crores in two phases.

In keeping with our aims and objectives outlined in our election manifesto we have taken up a scheme for making available to the poorer sections of our community rice at the fate of Rs. 2 per Kg.

It is our sincere desire that we should be able to take this State quickly along the path of accelerated development. To achieve this, we would leave no stone unturned. Hon’ble Members are aware that the resources available to the State are not flexible and in a situation of inflation over which the States have no control, it inevitably leads to ever increasing deficits. We are confident of overcoming all the hurdles in the way and achieve our goals. I am sure, in this attempt, we can count on the whole hearted co-operation of the Hon’ble Members from all sections of this House .

The Honourable Members are aware that the 19-day long strike of the N.G.Os. was withdrawn, thanks mainly due to the tremendous strength and initiative shown by our Chief Minister in this regard. The N.G.Os, also need to be complimented for the peaceful way in which they conducted themselves throughout the strike period. This has once again reaffirmed our faith that democracy is the best form of Government. I take this opportunity to thank the people for the co-operation they have extended during the strike period. We have received congratulatory messages from people all over the country and from various walks of life for bringing the whole thing to an amicable settlement. I take this opportunity to thank them also on behalf of our Government.

The Planning Commission while approving the plan of Rs. 826 crores in their discussions with the Chief Minister have impressed upon the State Government the imperative need for additional resources to bridge the gap. The above additional commitments both under Plan and Non-Plan coupled with the gap already existing left the Government with no alternative but to mobilise additional resources. As Hon’ble Members are aware, as part of this programme, we have already issued two ordinances enhancing the fates of Sales Tax and Motor Vehicles Tax. In addition we are contemplating mobilisation of further resources through taxes on goods carried by vehicles, enhancement in Entertainment tax and collection of Professional tax. We have taken care to minimise the impact on the common man consistent with our needs for additional resources and we have taxed those who have the ability to pay to meet the requirements of the needy.

Hon’ble Members may ask to why these ordinances were issued when the Legislature was about to meet for the presentation of the Final Budget. The important consideration that weighed with us to promulgate these ordinances was the time factor. I have already explained that there is a huge gap in resources and therefore we could not afford to wait.

I give below more details regarding increase in the rates of

Sales Tax and Motor Vehicles Tax

Increase in the rates of Sales Tax:

I wish to bring to the kind notice of the Hon’ble Members that the per capita Sales Tax in Andhra Pradesh is the lowest among all the Southern States as is evident from the figures pertaining to 1982-83 indicated below;

Name Of The State Per Capita Sales Tax

Tamilnadu ----- Rs. 139.76

Kerala ----- Rs. 107.86

Andhra Pradesh ----- Rs. 74.81

The ordinance issued on 8th July, 1983 envisages increase in the rates of Sales Tax on 99 items. The increase ranges from 1% to 7% as indicated below.

In increasing the rates in Sales Tax, care was taken to the extent possible, to minimise the impact on the commodities used by the common man.

The general fate of Sales Tax has been increased by 1% i.e., from 4% to 5% . The existing rate of 4% was fixed in 1974 and there has been no increase for the last nine years.

Extent on enhancement in the Number of items the rate of tax

1% and below ----- 41

2% ----- 23

3% ----- 29

4% to 7% ----- 6

The commodities which are generally used by common man like fice, dalls, coffe, tea, vanaspathi, fuel, gas, etc., have not been touched.

In fact, it is precisely in articles of conspicuous consumption like luxury items that the increase in the tax has been high.

Having regard to the representations made to us, Government have further considered the matter and with a view to give relief to the people, Government have withdrawn the increase in the fates of Sales Tax on the following 12 items.

Chemical Fertilizers and Bonemeal.

Groundnut oil of Refined oil.

Milk Foods and powders etc.

Stainless Steel and articles of Stainless steel.



Poultry feed and cattle feed.


Jowar, Milo




On account of increase in Sales Tax, the additional yield is expected to be Rs. 45 crores per annum and Rs. 30 crores during the current year.

Increase in the Motor Vehicles Tax;

The rates of tax have been enhanced by about 15% on some classes of motor vehicles keeping in view the fates of tax prevalent in the neighbouring States. This measure is expected to yield an additional revenue of about Rs. 7 crores during the current year.

Economic Situation In The State

The year 1982-83 commenced against a backdrop of a good performance of the State economy during 1981-82 both in the agricultural and industrial sectors. The estimates of State Income show that the State Income at constant (1970-71) prices during 1981-82 registered an increase of 13 per cent against a rise of 5.1 percent in 1980-81. The food grains production reached an all time record of 114.17 lakh tonnes during 1981-82 surpassing the earlier highest recorded production of 106.66 lakh tonnes in 1978-79 mainly due to a good monsoon and adoption of improved agricultural technology.

In 1982-83 however, the performance of the State economy showed mixed trends. During the Khariff season of 1982-83, the seasonal conditions were not favourable in many parts of the State due to which the production of foodgrains showed a decline of 7.3 percent over Khariff 1981-82. The preliminary estimates of foodgrain production for the State during the Khariff 1982-83 was of the order of 75.41 lakh tonnes against 81.31 lakh tonnes in the corresponding season of 1981-82. Due to prolonged dry spells and lack of adequate rains from November onwards the normal extents of Rabi dry crops could not be covered fully. The paddy crop raised under minof irrigation tanks was affected due to lack of water. The paddy crop was also affected by pests in some parts of the State. In the industrial sector, the average index if of industrial production in 1982 indicated an increase of 11.2 percent over that in 1981. It indicated a rise of 3.2 percent during the first three months of the current year viz., January to March, 1983 over that in the corresponding period of last year. The Labour and Employment situation revealed slight improvement while there was some increase in price levels.

State Income

The provisional estimates of State Income of Andhra Pradesh for 1981-82 at constant prices revealed a significant growth of 13 percent over 1980-81. The State income at current prices increased from Rs. 6,975.43 crores in 1980-81 to Rs. 8,335.55 crores in 1981-82 or an increase by 19.5 percent while the State Income at constant (1970-71) prices, which reveals the real growth in Goods and Services produced within the State, rose from Rs. 3,447.01 crores in 1980-81 to Rs. 3,896.06 crores during 1981-82 registering an increase of 13 percent.

The per capita income at current prices increased from Rs. 1,313 in 1980-81 to Rs. 1,536 in 1981-82 i.e., by 17 percent while at constant (1970-71) prices it rose from Rs. 649 in 1980-81 to Rs. 718 in 1981-82 or by 10.6 percent.

In the year 1982-83 however, the seasonal conditions being unfavourable, agricultural production, which is the major contributor to the State Income was affected and consequently the State Income has not shown any appreciable increase.


Agricultural production in the State made a significant breakthrough since 1973-74, the average annual output of foodgrains having risen from 74 lakh tonnes in the quinquennium ending 1973-74 to 101 lakh tonnes in the quinquennium ending 1981-82 i.e., a rise of 36.5 percent. The production of foodgrains was highest during 1981-82 with 114.17 lakh tonnes compared to the earlier highest recorded production of 106.66 lakh tonnes in 1978-79.

During the South_West monsoon period of June to September, 1982 as a whole, the State received an average rainfall of 563 which was less by six percent over the normal of 602 Region-wise the rainfall was less by 9 percent in Coastal Andhra and 2 percent in Telangana while it was in deficit by 20 percent in Rayalaseema over the corresponding normal. During the South_West monsoon period, the rainfall distribution was uneven and erratic in some parts of the State were affected resulting in low yields. Even paddy crop could not be transplanted in many places.

So far the rainfall in the current khariff season has been below normal and erratic. In the months of June and July most of the State did not receive adequate rainfall.

The preliminary estimates of crop production indicate that the production of foodgrains during Khariff 1982-83 was of the order of 75.41 lakh tonnnes against 81.31 lakh tonnes in Khariff 1981-82 and 73.62 lakh tonnes in Khariff 1980-81. The production of rice is estimated at 55.98 lakh tonnes in Khariff 1982-82 as against 57.48 lakh tonnes in Khariff 1981-82 and 53.76 lakh tonnes in khariff 1980-81.

Though the condition of standing Rabi crops was generally satisfactory, the Rabi crops raised under minor irrigation tanks was affected.


The industrial production in the State during 1982 had picked up momentum due to easier availability of power and also due to better infrastructural facilities. The average index number of industrial production for the year 1982 was 238.5 against 214.4 during the previous year thus including a rise of 11.2 %.

Labour Situation

The labour situation in the State during 1982 revealed an improvement as the total number of man-days lost during 1982 numbered 9.90 lakhs against 13.82 lakhs during the previous year.

Employment Situation

The employment situation in the State during 1982 was somewhat unsatisfactory, as the total number of vacancies notified to the employment exchanges declined by 2.5% i.e., from 56,406 during 1981 to 54,971 during 1982. However, during the period January to March, 1983, the total number of vacancies notified to the employment exchanges increased by 6.9% over the corresponding period of the previous year.

Wholesale Prices

The index number of wholesale prices of agricultural commodities in the State (with base 1970-71=100) declines from 229 in January 1982 to 215.1 during March, 1982. Subsequently, though it rose to a peak level of 248.3 during August, 1982, it came down to 228.7 by December, 1982, and almost stood at the same level in March, 1983.,though there are some variations in January and February, 1983. Compared to March, 1982, the index number of wholesale prices of all agricultural commodities in the State during March, 1983 however rose by 6.4%

Consumer Price Indices

The incidence of rise in the wholesale prices of agricultural commodities in the State was also reflected in the case of consumer price indices for industrial working class. During the year 1982, the average consumer price index number for the eight selected centres of the State was 461 (with base shifted to 1960=100) as against the All India average of 475 indicating an increase of 6% at the State level over the previous year against an increase of 7.7% at the All India level. During March, 1983,the average consumer price index number for industrial working class for the 8 selected centres of the State was 468 against 477 in December, 1982 whereas the All India consumer price index number rose from 497 in December, 1982 to 502 in March, 1983.

Subsidized Rice

Government have launched a scheme to sell rice at Rs.2 per Kg, to the weaker sections from the Ugadi day this year. Under this scheme, every family having an annual income up toRs.6,000 will get 25 Kgs of rice per month. Adequate quantities of rice are being released to the public distribution system for implementing this scheme. In addition, cash credit arrangements have been made with the Reserve Bank of India to the tune of Rs.35 crores for the successful implementation of the Scheme. Collectors have been instructed to augment storage space so that large quantities of rice can be held in the rural areas for eventual transport to the fair price shops.

In addition to supplying rice at Rs.2 per Kg., to the poorer sections of the people, it is also the endeavour of the Government to hold the open market prices of essential commodities such as rice and groundnut oil at reasonable levels. To achieve this, the State Government are regulating the movement of rice and groundnut oil within the State. The release of non-levy rice is also controlled to ensure better availability within the State. The Government is ordering the release of levy free eligibility rice, whether meant for sales outside the State or inside the State through permits to be issued by the Collectors so that depending upon the price situation we can regulate release of rice into the open market within the State. Similarly, in the case of groundnut oil, Collectors have instructed the trade to sell this important cooking medium only in Andhra Pradesh so that the price could be held at reasonable levels. To augment edible oil availability, soyabean oil received from the National Dairy Development Board is also being supplied through the public distribution system at prices well below the ruling market prices of groundnut oil.

Procurement of Rice

In order to strengthen our public distribution system and provide larger quantities of rice to the poorer sections of the people at Rs.2 per Kg, in February, 1983 we planned to procure a total quantity of 15 lakh tonnes of rice for the Central Pool during the crop year but we have actually procured by the end of July a quantity of 16.10 lakh tonnes through the Food Corporation of India for the Central Pool and 1.35 lakh tonnes through the Andhra Pradesh State Civil Supplies Corporation, in all, 17.45 lakh tonnes of rice which is an unparalled achievement in the procurement history of Andhra Pradesh. Since we have over-reached our targets we have requested the Government of India to made available to us the additional quantities of rice procured by us to meet the increased demand of our public distribution system so that we procure less from the rice mills at higher costs.

ANDHRA PRADESH Co-operative Oil Seeds Growers Federation

We are happy to inform the Hon’ble Members that the Andhra Pradesh Co-operative Oil Seeds Growers Federation though established in the year 1980 is now made active from April, 1983 by appointing a Managing Director and the Board of Directors. As the Hon’ble Members are perhaps aware, this organization was established with an intention to ensure adequate returns to the oil seeds growers, and to provide incentive for the cultivation of oil seeds. The National Dairy Development Board is helping this Institution, not only in its primary objective of establishment of a Processing Plant but also in supplying soyabean oil to help the public distribution system. The Project outlay is estimated to be of the order of about Rs.16 crores and would cover the districts of Prakasam, Guntur, Nalgonda, Khammam, Krishna and Mahabubnagar.

Rural Water Supply

Of Sixth Five-Year Plan. Providing drinking water is one of the foremost items of the programmes of this Government. Hence, huge funds are allotted for providing drinking water in rural areas for digging bore wells, open wells and P.W.S.,Schemes. Two surveys were conducted in Andhra Pradesh and 12,269 villages were identified as problem villages. 4,063 problem villages were covered up to the end of Fifth Five-Year Plan, leaving 8,206 problem villages to be covered subsequently. It is proposed to cover these problem villages by the end.

Government have reduced the rates of public contribution due from Gram Panchayats towards P.W.S..,Schemes. As per the revised orders, no contribution need be paid by a Gram Panchayat if its average income is below Rs.10,000 per annum as against Rs.4,000 previously fixed.

Government have decided that a master plan for each district should be prepared giving due weightage to the population, availability of water and drought prone condition in the district and that a list of problem villages should be prepared as list-III and incorporated in the master plan so as to ensure providing drinking water facilities to cover the entire rural population.

Under protected water supply scheme during the year 1983-83, a sum of Rs.27.73 crores is provided under Plan against the provision of Rs.18.20 crores in 1982-83 and it is programmed to cover 1,478 problem villages. Under the accelerated Rural Water Supply Programme, a sum of Rs.561.80 lakhs is expected to be spent during the current year. It is programmed to cover another 371 problem villages with this provision.

However, as an immediate measure of relieving acute scarcity of drinking water in settlements with a population of over 100 but without any drinking water source at present, Government identified 4,224 settlements all over the State and provided funds for providing at least one source each. This was undertaken as part of drought relief prorgamme during 1982-83 and 1983-84. An amount of Rs.4 crores has been spent for this purpose so far. Besides this, a substantial provision has been made for drinking water under drought relief programme in 1983-84 also.

Rural Sanitation

A sum of Rs.227 lakhs is provided for Rural Sanitation in the Budget for the current year. With this amount, it is programmed to cover 2.99 lakhs population in rural areas.

Urban Water Supply

The years 1981-1990 have been declares as the Decade for International Drinking Water Supply. The objective of the Decade is to provide potable drinking water to all citizens. The majority of Municipal towns have already been provided with protected water supply and many, however, propose expansion now. Such of those Municipal towns which have no such facility at all, will be provided with protected water supply during the Decade.

The outlay for the Annual Plan for 1983-84 in respect of Urban Water Supply is fixed at Rs.15 crores. With this outlay, it is proposed to augment water supply to Municipal towns by taking up various improvement schemes and also to investigate the sources of supply of water to the twin cities from Srisailam Project or Lower Manair Dam in addition to the Manjira Water Supply Scheme Phase-III (Singur Project). Further, the water supply to Guntur town is being augmented with Krishna River scheme.

Welfare of Scheduled Castes

The allocation for Scheduled Caste Welfare which was Rs.16.07 crores for 1982-83, has been increased to Rs.33.50 crores which is a 100% increase. In addition, for land acquisition for house sites also, there is 100% increase since the allocation of Rs.11 crores for 1982-83 has been increased to Rs.22 crores.

In the year 1982-83 with the provision of Rs.11 crores, 1,99,855 families were provided with house sites. In view of heavy demand for house sites, it is proposed to provide house sites to 4 lakh families with Rs.22 crores.

The Andhra Pradesh Study Circle which is coaching the candidates appearing for the I.A.S., and allied services examinations is producing better results. During 1981-82, out of 45 candidates given coaching, 7 were finally selected and during 1982-83, out of 32 candidates given coaching, 6 were finally selected.

Government have introduced anew scheme of training the Law Graduates belonging to Scheduled Castes, Scheduled Tribes and Backward Classes in the administration of justice during 1982-83. Under this scheme, 58 candidates are given training every year by providing stipends at the rate of Rs.300 per month in the first year, Rs.350 per month in the 2nd year and Rs.400 per month in the 3rd year. They would also be given enrolment fee of Rs.585 and Rs.1,000 for purchase of books.

In keeping with our desire to improve the educational facilities to the children belonging to Scheduled Castes we have provided Rs.5 crores for construction of hostel buildings as against only Rs.2 crores in the last year marking an increase of 150%.

During 1982-82, an amount of Rs.5.09 crores was provided for sanction of Old Age Pensions and 1,68,367 old people were given pension. To cover more old people, an amount of Rs.7.20 crores is provided for the year 1983-84.

During 1982-83, a total amount of Rs.72.60 crores was provided under Special Component Plan for Scheduled Castes. During 1983-84, the allocation under Special Component Plan is Rs.139.53 crores.

The plan outlay for Backward Classes Welfare has been increased from Rs.935.10 lakhs in 1982-83 to Rs.1,980 lakhs.


During 1983-84, it is proposed to open 100 new hostels for Backward Classes benefiting 5,000 boarders. Eight hostels for the children of Fishermen and six hostels for the children of Waddars, Shephards, etc, are proposed to be opened benefiting 400 and 300 children respectively.

Keeping the demand in view, the scholarships will be sanctioned to the pre-matric and post-matric students.

Ten special libraries for students of professional courses are proposed to be opened.

Professional Schemes

Six training-cum-production centres for dress making and four centres for the rehabilitation of socially handicapped women are proposed to be opened.

It is proposed to introduce a new scheme during 1983-84 to provide financial aid and infrastructure facilities to the professionals.

It is proposed to earmark Rs.663 lakhs to take-up Special Schemes for the development of all the hard working communities like Fishermen, Tappers, Waddars, Riksha Pullars, Carpenters, Barbers, Weavers, etc.

Tribal Welfare

According to 1981 census, the Tribal Population is 31.76 lakhs.

Special schemes are being taken up for the welfare of Tribals with State Plan Funds, Central Assistance and Institutional finances.

As against the allocation of Rs.4.59 crores in 1982-83 under State Plan and Rs.4.34 crores under Centrally Sponsored Schemes, an amount of Rs.8.7- crores under State Plan and Rs.6.06 crores under Centrally Sponsored Schemes have been allocated for 1983-84.

Provision has been made for margin money loans and subsidies and it is proposed to cover 50,000 families in 1983-84, against 38,000 families in 1982-83 to cross the poverty line.

It is proposed to ensure 100% enrolment by providing incentives. To provide better quality education to the Scheduled Tribes children, the allocation for Residential Schools has been stepped up considerably. Two more Residential Schools will be opened at Bhadragiri, Vizianagaram District and at Kalyani dam, Chittoor District, for Tribals during 1983-84, in addition to the three Residential Schools already santioned.

Welfare of Physically Handicapped

A separate Directorate has been formed with effect from February, 1983 to pay more attention to the welfare of physically handicapped persons.

he allocation for the welfare of handicapped has been increased from Rs.57.80 lakhs in 1982-83 to ;Rs.270 lakhs in 1983-84.

Unemployment allowance of Rs.30 per month is paid to the totally blind and totally crippled persons including deaf and dumb persons who are deprived of the use of any limbs.

The training-cum-production centres in the three regions are being established to train various categories of handicapped in various vocations.

The centres at Nizam Orthopaedic Hospital, T.T.D Hospital, Tirupati have taken up Jaipur type technology for making and supplying of artificial limbs and callipers. Another centre for the same purpose is being set up at K.G.HOSPITAL and R.C.D.Hospital, Visakhapatnam.

To help the college-going blind students, a sound library has been established by the Handicapped Persons Welfare Finance Corporation. The lessons are recorded on the cassettes and supplied free of cost to the college going students with tape recorders.

Maragin money loans are provided by the Corporation under self-employment scheme.

Two hearing aid centres, are functioning at Deaf School, Tirupati and Gandhi Hospital, Secunderabad, to provide suitable aids.

Weaker Sections Housing Programme

During 1982-83, a massive programme for constructing one lakh houses at a unit cost of Rs.1,000 and another one lakh semi-permanent houses at a unit cost of Rs.4,000 was sanctioned by the Government. But against the above target of two lakh houses, the construction of only 73,757 huts and 45,173 semi-permanent houses were taken up. Against these houses taken up, only 50,281 huts and 3,914 semi-permanent houses were completed.

The scheme of construction of huts and the semi-permanent houses taken up during 1982-83 has been dispensed with by our Government in view of its basic deficiencies with a view to provide only permanent houses with more accommodation and comfort for beneficiaries.

During 1983-84., it is programmed to construct 2.20 lakh permanent houses at the rate of 10,000 houses in each district in the following categories :

Category: No. of houses: Unit cost:

Semi-permanent rural housing 22,000 3,000

Rural permanent houses 1,20,000 6,000

34,000 7,000

Urban permanent houses 44,000 9,000

The total cost of construction of the above houses was estimated at Rs.142 crores. Out of this Rs.58 crores is proposed to be provided by the Government as subsidy, Rs.5.17 crores will be collected from the benefeciaries as thei