Previous Budget Speeches






ON 16 th FEBRUARY, 1984.




I rise to present the Budget of Andhra Pradesh for the year 1984-85. Honourable Members would recall that just about six months ago, in August 1983, the final budget 1983-84 was presented by me. I stand before you today seeking your approval for the Budget for 1984-85. This provides me with an opportunity of apprising the House of the impact of the various innovative measures taken by us since the presentation of the last Budget and outline the new initiatives proposed to be taken in the coming year. While I am fully conscious of the fact that a period of one year since we have been in power as a result of the historic and massive mandate given to us by the people of Andhra Pradesh is too short for any purposeful evaluation, nevertheless, I would submit with all humility that our endeavors and achievements would force a willing nod of recognition and satisfaction even from the most hard-boiled cynic.

Honourable Members are fully aware of the distinct reorientation in plan prorates brought about by the Telugu Desam Government in the budget of 1983-84. Social and Community services sector, which was hitherto relegated to a secondary role, was given its rightful place as a potent and purposeful instrument for balanced social and economic development of the State. This sector which accounted for only 26.86% of the aggregate state plan outlay in 1982-83 saw its share increased to 37.3% in the final Budget 1983-84. Steep increases in budgetary allocations were made for school education, rural water supply,. Housing for weaker sections, welfare of scheduled castes, scheduled tribes, and backward classes, apart from the introduction of the mid-day meals scheme. This significant shift in priority was born out of our deep conviction that economic development alone would not ensure the establishment of a prosperous and egalitarian society. It is only when the development of economic infrastructure is in step with an expansion of social services in terms of education, medical and health services, housing, water supply and nutrition, ensuring concurrent development of human resources could we make all our people equal partners in the exciting task of reconstruction of our State towards a new and just social and economic order. It is, once again, this conviction of ours which made us e4mbark upon the scheme of subsidised distribution of rice at Rs.2 kg. To the vulnerable sections of the people. In spite of the fact that the scheme has been making a substantial draft on our limited resources, if we have not been deterred in the implementation of the scheme, it is only because of our unflinching faith that this is the mainstay of our anti-poverty programme.

While there is no doubt that as part of a deliberate design and strategy we have brought about a shift in plan priorities in favor of the social services sector, the economic services sector particularly the irrigation and power sub/sector has been given due emphasis. In the coming year 1984-85, the share of the irrigation and power sector has been increased to 47.6% from 43.0% in 1983-84, the aggregate outlay on irrigation and power being Rs.465.77 crores out of total plan outlay of Rs.978.31 crores. The allocations to various key irrigation and power projects have been kept at reasonable levels, while that for other major and medium irrigation schemes has been substantially increased from about Rs.30.55 crores in 1982-83 to about Rs.48 crores in 1984-85. This increased allocation besides speeding up the tempo of ongoing works would give a fillip to stable agricultural production, particularly in the drought prone and backward regions of the State.

We are aware that scientific planning is only the beginning of a comprehensive effort at taking public services to the people quickly, efficiently an fully. Unless administration is decentralized and the people involved in the implementation of the welfare programmes, no scheme however well conceived could confer the intended benefit. Government have therefore taken steps for decentralizing administration as well as plan process, simultaneously developing institutional mechanisms for involvement of elected representatives and experts in various fields. A comprehensive approach to formulation and implementation of developmental activities at the District level was considered essential encompassing the rural and urban areas, Plan and Non-Plan activities and functioning of a number of developmental agencies at the district-levels including district Rural Development agency, Zilla Parishad, Integrated Tribal Development Agency, Co-operative Bodies and other district level functionaries of autonomous bodies. An element of urgency has been imparted to this idea due to the exercises relating to the formulation of the Seventh Five-Year Plan. It was also felt that a comprehensive approach to process of development and social change would involve review of the functioning of the regulatory agencies at the district level in which the elected representatives also are to be closely associated. Accordingly, Zilla Development Boards have been constituted for every district with a Minister of the Government as Chairman, District Collector as Vice-Chairman and a number of 4elected representatives including the Chairman, Zilla Parishad and nominated experts as members. In due course, it is expected that institutional mechanisms would developed to strengthen plan processes at levels below the district also. Our proposal to revamp the Panchayati Raj set up bringing about a new three tier organization consisting of gram panchayats at the grass-roots levels, Mandal Panchayats for a population of 35,000 to 55,000 and Zilla Parishads will have to be viewed in this context.

It is our expectation that during the Seventh Five-Year Plan period, the State Plan itself will get evolved to a large extent form the district level, a beginning is being made in this direction in the year 1984-85 itself. Rs.1 crore for each district is being allocated in respect of which schemes will be formulated by the district level agencies as per the guidelines furnished by the State Government. This is expected to provide finances for critical investments of a non-recurring nature improving efficiency of capital assets already created and also bringing about awareness and capability to formulate District Plans in future.

Before I take the Honourable Members through a more detailed sectoral review and the provisions made for 1984-85, I would like to present a brief economic land scape of the State.


Due to the rapid adoption of the new agricultural technology by our farmers, the State has achieved a significant break though in the field of agricultural production since 1973-74. In spite of unfavourable seasonal conditions in 1982-83, the food/grains production was 111.77 lakh tonnes.

Though there was delay of a fortnight in the onset of south-west monsoon, the rainfall during the curr3ent year, on the whole, was fairly good in all parts of the State. However, the unprecedented heavy rains of August and the cyclone in October, 1983 affected crop yields in many districts of the State besides causing great damage to public property and untold miser4y to the people.

Though crop yields suffered in a number of districts due to heavy rains and floods, thanks to the relief and rehabilitation measures taken by Government, production of foodgrains during the ;current year is expected to be about 115 lakh tonnes.

Employement Situtaion

The employment situation in the State during the year 1983 indicates improvement as the total number of vacancies notified in the employment exchanges rose by 27.6%i.e., from 50.518 in 1982 to 64.440 in 1983 (i.e., from January to November).


Price Situation

The average consumer price index during January to October, 1983 revealed an increase of 8.2% in the State as against the increase of 12.7% at the All India Level.
Pragathi Padham
As an earnest of our intention to translate our election promises into action-oriented programmes, we have taken up the Pragathi Padhan program. This is a concrete symbol of our focus on the amelioration of the living conditions of the neglected and down-trodden. It is intended to wipe our poverty, illiteracy, ill-health, indiscipline, injustice, corruption and abuse of power. Even in the national context, the performance of our Government it respect of I.R.D.P., welfare of Scheduled Caste and Tribes, provision of drinking water supply,. House-sites and slum improvement has been rated very high.
Natural Calamites

Though there was delay in the onset of monsoon followed by a long dry spell requiring implementation of drought relief measures in the State, there was very heavy rain-fall in the middle of August in north Telangana and in the coastal districts leading to server inundation and extensive submersion of agricultural lands in the Godavari Valley. The districts of Nizamabad, Adilabad, Karimanagar, Warangal, Khammam, East Godavari and West Godavari suffered extensive damages. In all 4,800 villages were affected

Close on the heels of the floods in August, 1983, the State was visited by a severe cyclone followed by heavy rains in the first week of October, 1983. The same districts which suffered the fury of floods in August, suffered once again. In addition, the districts of Guntur, Srikakulam, Vizianagaram, Visakhapatnam, Nalgonda and Ranga Reddy Districts were also affected. On the whole, 20 out of the 23 districts were affected one way or other in the two spells.

On both the occasion, the damages were extensive. But for the timely action of the State machinery, loss of life would have been extensive. Immediate relief was organized y evacuating people wherever necessary and organizing relief camps and also extending cash assistance to the affected families. Free supply of clothing up to Rs.75 and 10 kgs rice was also given. In cases of death, an ex gratia of Rs.2,000 each was paid immediately. Government also remitted land revenue on the basis of the estimated yields village-wise.

To rehabilitate the people rendered homeless Government have decided to construct 20,000 houses at a total cost of Rs.12.20 crores in the flood affected districts. To take up emergent repairs for works of P.W.D., Panchayati Raj and other public utility services, Government have sanctioned Rs.15.84 crores in respect of August floods and Rs.50.88 crores for October, 1983 floods.

For meeting the expenditure on Relief and Rehabilitation Schemes and for repairs and restoration of damaged works due to heavy rains and floods in August 1983, the Government of India prescribed a ceiling of Rs.20.54 crores as against a request for assistance of Rs.76 crores. Again in respect of October cyclone and floods, the Government of India have prescribed a ceiling of Rs.76.16 crores only for meeting the expenditure on various relief and rehabilitation schemes and also for repairs and restoration of damaged works as against a request for Rs.376 crores.


Annual Plan For 1984-85


The State's Sixth Five-Year Plan for 1980-85 was formulated for a total outlay of Rs.3,1000 crores. During the first three years 1980-83, and outlay of Rs.1,551 crores, representing 50% of the Sixth Plan outlay was spend, but during 1983-84 when this Government assumed office there was substantial step up in the Plan outlay to Rs.896.28 crores against which the Revised Estimate is Rs.874.28 crores. The outla6y proposed for the Annual Plan 1984-85 is Rs..978.31 crores, and its sectoral composition takes into account the following factors:-

Continuance of the priority for Social and Community Services in particular, for the welfare of Scheduled Castes, Scheduled Tribes and Backward Classes, Weaker Section Housing Youth Welfare, Vimukthi, etc.,

Enhanced emphasis on Irrigation and Power,

The requirements of Telugu Ganga,

Need to promote decentralized Planning including provision of Rs.1 crore per district for District level schemes; and

Need to provide for innovative approaches like Vocationalisation of education, Yuvasakthi, Government Orphanages.

The Plan outlay of Rs.978.31 crores for 1984-85 is 71% more than the expenditure of Rs.572 crores in 1982-83. The huge step up of the outlay to Rs.1,853 crores in the two years 1983-85resulted in the Sixth Plan outlay of Fs.3,100 crores being exceeded by Rs.304 crores. Against this back drop of impressive achievement, we are launching the State's Seventh Five-Plan.

The Government have constituted a State Development Board under the Chairmanship of the Chief Minister for advising them on all matters of development, taking into account the material, financial and human resources.

While we have significantly stepped up our annual plan outlays, it is not as if we have been oblivious to the requirements of essential non-plan expenditure. There is a mis-conception that every non-plan expenditure is non-development expenditure. Essential maintenance expenditure on irrigation, medical and health, communications, etc., though they form part of non-plan expenditure, nevertheless, is expenditure of a developmental nature. Ignoring the essential requirements of such sectors could only imperil the economy in the long run. It is not infrequently that one hears of complaints of poor maintenance of irrigation works, road works etc. Recognising that proper upkeep and maintenance of capital assets is very essential, if we are not to fritter away our economic assets built over a period of time, maintenance grants in respect of key sectors have been substantially increased in 1984-85.

An additional provision of Rs.6.36 crores has been made in the Budget 1984-85 for maintaining irrigation sources at the rate of Rs.15 kan acre uniformly in respect of mino9r, medium and major irrigation sources instead of at Rs.9 per acre for minor irrigation sources and at Rs.10 per acre for other sources. A further provision of Rs.0.66 crore has been made for meeting the expenditure on maintenances of lift irrigation schemes increasing the maintenance rate from the current level of Rs.60 an acre to Rs.100 an acre. An additional provision of Rs.4 crores has been made for better maintenance of roads.

Considering the need to provide adequate medicines and diet to patients in hospitals, the norms for provision of medicines and diet charges have been increased by 50%. For meeting the expenditure on account of the above increase, an additional provision of Rs.636.66 lakhs has been made in Budget Estimates 1984-85.

Measure have also been taken to strengthen basic services in the districts:-


Police Administration


The State Government have taken several steps to improve the Law and Order situation. Six new Police Stations have been opened in the old city of Hyderabad as a part of our measures to contain communal troubles. In the major cities of Vijayawada and Visakhapatnam, the police administration has been upgraded to Urban Police Districts. Two new police stations have been opened in Warangal to deal with extremist activities.

Many of our Police buildings are in a dilapidated condition. Government have taken up a programme costing Rs.8 crores for construction of 9 District Police Offices and 330 Police Stations.

For the speedy disposal of cases pending in various courts, to try cases of economic offenders under the Essential Commodities Act and to deal with cases against extremists, Government have sanctioned 30 additional courts consisting of 3 additional sub-courts, 5 additional sessions courts, 17 munsif magistrate courts and 5 mobile courts.


Government have drawn up a phased programme for the location of Sub-treasuries at every key administrative unit. As part of this programme, f12 sub-treasuries are proposed to be established this year at existing talk headquarters.

Opening Of New Fire Station in Taluks
Year after year the poor people of the State dwelling in huts have been subjected to great hardships on account of fire accidents. Unfortunately Fire Stations are not available in 208 taluks of the State. Government have decided to remedy this situation and a phased programme has been taken up. An amount of Rs. 150 lakhs is provided in 1984-85 and that in 1983-84 an amount of Rs.132.10 lakhs has been sanctioned. In addition an amount of Rs.50 lakhs has been provided in the Revised Estimate 1983-84 and also in Budget Estimate 1984-85 for construction of buildings for Fire Stations.

Welfare of Scheduled Castes


Several schemes are being implemented for the welfare of Scheduled Castes.


Hon'ble members are aware of the `Residential Schools` being run by the Education Department. Government have taken up this year, a programme to extend the same facility to Scheduled Caste children. Two schools per district with 200 children in each, one for boys and the other for girls have been started. An amount of Rs.186.64 lakhs has been provided for these schools during 1983-84. For 1984-85, a sum of Rs.236.75 lakhs has been earmarked for these residential schools.

Government Hostels

During the year 1983-84, 33 new hostels were sanctioned with a strength of 100 boarders in each hostel, besides maintaining the existing 1798 hostels. In the year 1984-85, a sum of Rs.26,37 crores is allotted both under Non-Plan and Plan against Rs.24.67 crores in 1983-84.


The programme of construction of Hostel Buildings will be pursued with equal vigor in 1984-85 and an amount of Rs.3.50 crores has been provided for the same.


We have taken up a massive programme for providing house sites. In 1983-84, up to end of December, 11,427 acres have been acquired and house-sites provided to roughly one lakh Scheduled Caste families. In 1984-85 it is proposed to provide house-sites to 2 lakh families.


During 1983-84, Government have proposed to spend a total amount of Rs.121.01 crores on Special Component Plan against Rs.72.60 crores in the year 1982-83. In 1984-85 this allocation has been further stepped up to Rs,123.20 crores.

Weaker Sections Housing Programme
Government have given special priority to housing as a socially urgent need. Social housing is an enormous task requiring vast resources in terms of money, material and man-power. A massive unparalleled scheme was launched by the State Government in January, 1983 as soon as this Government assumed office to build 2,20,000 houses in a phased manner in all the rural districts at the beneficiaries in the scheme, they were encouraged to participate physically in the construction of these houses by providing technical and financial support by the Government. In the first phase, it was proposed to construct 1,40,000 houses.
Programme kfor 1984-85
An allocation of Rs.40 crores has been made towards subsidy for Weaker Sections Housing Programme during 1984-85. A total loan component of Rs.43.35 crores is involved for construction of these houses in addition to the subsidy provided by the Government and beneficiary involvement.


In addition to the provision of Rs.40 crores towards subsidy made under Plan for construction of houses to the weaker sections, loans are being obtained from the various financial institutions like HUDCO, Life Insurance Corporation, General Insurance Corporation and Banks for financing the construction of these houses. Since there is no recovery from the beneficiaries, the Government are providing for repayment of these loans. The provision made for repayment of these loans are Rs.5.09 crores in 1983-84 and Rs.7.30 crores in 1984-85.


Our Government have accepted the recommendations of the Mandal Commission in regard to reservation for Backward Classes.

During 1983-84, besides maintaining 602 hostels for backward classes children and 32 Ashram School ,hostels for the children of Fishermen, Waddars, Shepherds etc., benefiting about 57.000 children, 100 new hostels have also been sanctioned. In addition, 12 Ashram Schools are proposed to be opened for the children of Fishermen, Waddars, Shepherds etc., benefiting 600 children. Thirty more hostel buildings would completed during 1984-85.

An amount of Rs.375 lakhs has been utilised towards margin money to take up economic support schemes with an outlay of Rs.1,875 lakhs with the banks participating, benefiting 80,000 families . In 1984-85 about 80,000 families are proposed to be covered under economic support schemes utilizing margin money of Rs.400.8 lakhs.

The rate of ex gratia payment in case of death or permanent disablement of toddy tappers while engaged in their profession has been enhanced from Rs.2,000 to Rs.5,000 and in case of temporary disability from Rs.500 to Rs.1,000.


Hon’ble Members are, I am sure, aware of the policy of our Government to secure to women their rightful place. Our State Government have already initiated legislation for ensuring equal property rights for women. Similarly, to enable women take up gainful employment and be self-reliant, a University for Women was established at Tirupati. Working Women Hostels have been opened in eight centres in the State at a cost of Rs.10.82 lakhs.

As a social security measure for d3eprived women, Government have decided to pay a pension at Rs.50/- per month to poor widows with income less than RS.1,800/- per year.

Another important step in the amelioration of the conditions of women is the reservation of 30 per cent of jobs in Public Services.

Rural Water Supply

Since water is a prime need, Government have been giving top priority for water supply in the Pragathi Padham Programme. Steps have been taken to provide atleast one drinking water source to a population of 250. A target of 12,245 sources was set for the year and the cumulative achievement upto the end of October , 1983 was 7,796 sources which works our to 62% of the target.

Our of 8,206 problem villages left over at the end of Fifth Five-Year Plan, 5,160 villages were covered till the end of 1982-83 leaving 3,046 problem villages to be covered during the remaining two years. During 1983-84, up to the end of November, 504 problem villages were covered against the target of 1,478 villages.

Programmes for 1984-85
An allocation of Rs.17.60 crores has been made to cover 1,458 problem villages. Apart from the State Plan allocation, an amount of Rs.5.26 crores is expected from the Government of India under Accelerated Rural Water Supply to cover 110 problem villages. Thus 1,568 problem villages would be benefited.

Government, with a view to ameliorating the living conditions of those engaged in unclean occupations, have formulated the "Vimukti" programme. The basic thrust of the programme is to liberate those engaged in unclean occupations without economic dislocation. One of the schemes under this programme is, the conversion of dry latrines into "Water Seal Pour Flush Sanitary Latrines" so that the practice of human handling of night soil is given up. In addition to completing the ongoing schemes in three municipalities, it is proposed to take up the scheme in 14 more municipalities in the current year and 13 additional municipalities in k1984-85.

The scheme also envisages provision of low cost pour-flush water latrines for better standards of sanitation in Grama Panchayats with Protected Water supply Schemes and community latrines for women to ensure their dignity and privacy in selected Grama Panchayats and the Weaker Sections Housing Colonies in the State.

To implement this programme in rural areas, an amount of Rs.226 lakhs was sanctioned during 1983-84. An allocation of Rs.140 lakhs has been made for 1984-85.

National Rural Employment Programme
The National Rural Employment Programme is a Centrally Sponsored Scheme, the expenditure on which is shared equally by the State Government and Central Government. This scheme aims at generating employment in rural areas while creating durable community assets. During 1983-84, 114.30 lakh man-days of employment were generated up to the end of December, 1983. Up to the end of September, 1983, 6,634 school buildings, 26,584.19KMs of rural roads, 8,886 community irrigation and drinking wells and minor irrigation sources to benefit 31,751..03 hectares and 2,08,326 houses for Scheduled Castes and Scheduled Tribes were constructed under this programme. In the year 1984-85, the outlay has been enhanced to Rs.47 crores as against Rs.40 crores in 1983-84.

Rural Landless Employment Guarantee Programme


The Government of India have formulated a new scheme called "Rural Landless Employment Guarantee Programme." The main aim of the scheme is, to provide employment up to a period of 100 days in a year to landless families. An assistance of Rs. 10 crores is expected from the Government of India for this scheme during the year 1983-84 and in 1984-85 an assistance3 of Rs.50 crores is expected from the Government of India.

A programme for construction of schools building at an estimated cost of Rs.32.06 crores and rural link roads at an estimated cost of Rs.46.27 crores has been prepared for the period 1983-85 under this programme and forwarded to the Government of India for their approval.


Rapid strides have been made by us in the field of Education, the first being the abolition of the evil practice of selling seats in professional and vocational Institutions.

The Plan allocation for general education has been increased from Rs.16,23.28 lakhs in the year 1982-83 to Rs.34,50,57 lakhs in 1983-84 and to Rs.38,20,00lakhs in 1984-85. At least, one primary school building would be provided in every village. There is significant increase in the number of school going children during this year. New teachers have been appointed at various levels. 14,621 special category teachers posts have been created for converting single teacher schools into two teacher schools, 2,117 special language Pandit posts have also been created. We firmly believe that vocational training should be imparted to children in the schools to enable them to stand on their own feet and not become a drag on the society. The educational system is proposed to be revamped to bring about the revolutionary change.

With the financial assistance of United Kingdom to the tune of one Million Pounds, "The Primary Education Project" is proposed to be launched during the current year with the dual object of improving not only human resources but also providing class rooms of improved quality for primary schools. This programme covers 11 districts in the State.

Considering the need for opening of more colleges in different parts of the state, the Government have sanctioned 28Junior Colleges and 18 Degree Colleges during the year 1983-84. 8 Private Junior Colleges and 7 Private Degree Colleges were also opened. Government have also sanctioned 4 vocational courses in four Government Junior Colleges in the State in the field of Engineering, Agriculture and Animal Husbandry,. Especially, for the welfare of the students belonging to Scheduled Caste.


Mid-day Meals Programme


Despite financial constraints, our Government have successfully nationalized and improved the Mid-day Meals Scheme for the benefit of children belonging to Scheduled Castes, Scheduled Tribes and Backward Classes and other children whose parents' annual income does not exceed Rs.3,000 p.a. It is a well thought out and integrated measure to combine the goals of achieving higher levels of nutrition for school children while simultaneously providing incentive for enhancement in the enrollment and improved attendance in the schools. This scheme is being implemented in Government schools and also in the schools run by the Local Bodies. About 40 lakh children are covered by this Scheme.


Technical Education


Keeping in view the need for extending Technical Education facilities in the State, Government have decided to set up four new Technical Institutions at Diploma level during 1984-85.

Against the Revised allocation of RS.106.00 lakhs in 1983-84, an allocation of RS. 364.00 lakhs has been made for Technical Education in 19984-85.


The existing machinery and equipment in the Government Polytechnics and Industrial Training Institutes is very old. A phased programme for providing of new equipment has been formulated and an additional provision of Rs. 2.25 crores to the Industrial Training Institutes and Rs.1.00 crore to the Polytechnics has been made in Budget Estimate 1984-85 under non-plan.

Medcal and Health

It is the policy of our Government to extend medical facilities to all the rural areas in the State and also provide specialised treatment in the District and State headquarters. A programme for opening 92 new Primary Health Centres has been taken up. A Community Health Centre would be provided at the rate of one per lakh of population. It has also been decided to provide one Woman Assistant Surgeon in every Primary Health Centre. In 1984-85, it is proposed to set up 3 Cardiology Units in the District Headquarters Hospitals in the three regions at a cost of Rs.54.00 lakhs and also Paediatric specialty in all the District Headquarters Hospitals. Government have provided facilities to Post-Graduate students in Medical Colleges and Hospitals to compete for the National Board Examination

A Cancer therapy centre with Tele-Cobalt Unit would be provided in all teaching hospitals. We are keen to develop Super Specialities in the State and one by-pass Surgery Unit was started in the Nizam's Orthopaedic Hospital. The Institute of Medical Sciences at Hyderabad is also being strengthened.

Family Welfare
Under the National Programme of Family Welfare a total number of 3.6 lakh sterilisations are expected to be done during this year preventing half-a-million births. In order to give a fillip to the Family Welfare Programme, it is proposed to award prizes for the best district, best hospital and the best Primary Health Centre in the State.
Rural Development

Integrated Rural Development Programme is the major beneficiary oriented programme aimed at increasing the income levels of the rural families below poverty line. Under this programme, the rural develoop0ment agencies identify the poverty groups, formulate schemes, arrange loans from banks, provide subsidy and extend technical support in the field of agriculture, minor irrigation, Animal Husbandry, Fisheries, Sericulture, TRYSEM and industry services and business sector so as to ensure that the desired incremental incomes are generated in favor of the beneficiaries. 50% of these beneficiaries are to be drawn from the category of Scheduled Castes and 10% from the Scheduled Tribes.

During 1983-84, an allocation of RS.15.00 crores has been made for this programme by the State Government. Equal matching share will be released by the Government of India for this scheme. It is expected that about 1.98 lakh families will be benefited by this programme during 1983-84.

Two more important schemes have been introduced by the Government of India. They are (i) Development of Women and Children in rural areas; and (ii) Augmenting the agricultural production in the State by assisting the small and marginal farmers. The object of the first scheme is to focus the attention of the women members in the families belonging to the target group to increase their income and also provide support services needed to enable them to take up income generating activities. Under this scheme, three districts, i.e., Srikakulam, Cuddapah and Adilabad are covered. A sum of Rs.28.00 lakhs has been released for implementation of the scheme. Under the second scheme for augmenting the agricultural production in the State, it is proposed to assist the small and marginal farmers for increasing agricultural production in selected areas in each of the 330 Blocks in the State at a total cost of Rs.16.50.00 lakhs to be shared at 50:50 basis by the Government of India and the State Government during 1983-84. The scheme aims at benefiting 600 families of small and marginal farmers in each Block by providing financial assistance at Rs.5,00

lakhs to each Block. These schemes are being continued in 1984-85 also.

Concessions to Farmers

Agriculture is the bedrock of the State economy. Our farmers, therefore, are to be helped if they are to help the community.

We have relieved the farmer of the vexatious and archaic impost of land revenue by waiving fully collection of dry assessment and the dry component of wet assessment with effect from 9 th January,1984. The revenue forgone by the State Government on account of this waiver of land revenue is estimated at Rs.8.77 crores.

Further, the Government have initiated a number of measures to secure for our farmers, remunerative prices for their produce. An additional amount up to Rs.50 per quintal was secured for paddy purchased from the farmers in the State during 1983-84 Rabi season over and above the support price announced by the Government of India.

In regard to the production of Virginia Tobacco as Honourable Members are aware, the State enjoys a virtual monopoly. Virginia Tobacco is being exported to nearly 60 countries and Rs.200 crores of foreign exchange is earned yearly. But a lot of tobacco was left unsold with the farmers. The State Government extended Rs.2 crores as loan to the farmers benefiting 4,850 primary growers.

Hon'ble Members are also aware that while the Government of India prescribed a minimum cane price of RS.135/- per tonne, at8.5% recovery, the State Government have prescribed this rate at Rs.185/- per tonne to ensure a remunerative price. Since the levy sugar price has not been increased and consequently the sugar factories may not be able to pay the State advised price to the sugarcane growers, Government have provided financial assistance to the public sector sugar factories to pay the higher price. For payment of higher cane price for the season k1982-83, the State Government have sanctioned a total sum of Rs.22.7 crores. For payment of higher sugarcane price during 1983-84 season, a sum of Rs.6.02 cores was already sanctioned and a provision of RS.10.00 crores is made in the Budget for 1984-85.

Land Reforms

Hon'ble Members are aware that structural reforms in land relations are an important plank of our programmes for the welfare of the weaker sections. Therefore, this Government attach great importance to the implementation of land reforms.

Till the end of November, 1983, an area of 24,462 acres of wet land and 4,22.239 acres of dry land was taken possession leaving a balance of 2,350 acres of wet land and 13,991 acres of dry land to be taken possession. Out of the area taken into possession, an area of 575 acres of wet land and 64,593 acres of dry land is reported by the Collectors as unfit for cultivation and covered by legal hurdles. An area of 21,130 acres of wet land, 3,01,124 acres of dry land was assigned for agricultural purposes and 90 acres of wet land and 1,132 acres of dry land is allotted for house sites to the weaker sections benefiting 1,18,994 Scheduled Caste families, 42,262 Scheduled Tribe Families, 69,932 Backward Class Families and 15,721 other families.

Animal Husbandry
Under Cattle Development Programme, the usage of frozen-semen technology has been popularised with strides. The 3 rd frozen-semen Bank at Karimnagar has started functioning. During 1983-84, about 2,800 artificial insemination Centres functioning in the State performed artificial inseminations in 4.05 lakh animals, up to the end of December, 1983. For improving the quality of animal health service, the Veterinary hospitals at district headquarters and other important places are being upgraded to polyclinics. 20 Mobile Input units are being established at predominantly Scheduled Caste populated revenue divisions for exclusively health and extensive care of live-stock in Harijan Bastis.
Keeping in view the need for intensive development of all forest resources in the State and the need to create wood resources outside the forests, various developmental programmes have been implemented during 1983-84. As a result of these activities, 24,0-00 Hectares of degraded forest land and unproductive waste land was brought under productive use through afforestation with suitable tree species under various social forestry programmes. 860 lakhs of seedlings were distributed to the public mainly, farmers for planting in their own lands. A green wall of Casuarina shelter belt was raised over a length of 765 K.Ms. along the coast to mitigate the damage from cyclonic winds. Plantations of fuel, fodder and shade bearing species were raised on either side of the roads over a length of 887 K.Ms. Multipurpose and high value timber and economic plantations were raised over an area of 3,610 Hectares.

The allocation for Irrigation including Minor Irrigation has been stepped up to Rs.246.34 crores in 1984-85 from RS.211.45 crores in 1983-84. Several schemes are being taken up to provide irrigation facilities to the drought affected areas of the State by utilising the waters of Krishna. Government have taken up the execution of the Srisailam Right Bank Canal, Srisailam Left Bank Canal, extension of Kakatiya Canal under Sriramasagar Project and other works. Completion of all the ongoing major, medium and minor irrigation projects would receive the high priority.

In my last Budget Speech, I had given details of Telugu Ganga Project. Besides supply of water to Madras City, 5.75 lakh acres in Kurnool, Cuddapah Nellore and Chittoor Districts would irrigated under this. Works on Telugu Ganga Project have already been taken up and they are in progress . Details of the scheme estimates were sent to Government of India for Rs.637 crores for clearance.

The gigantic Nagarjunasagar Project is expected to be completed by June, 1985 fully utilising World Bank's assistance. A provision of Rs.48.50 crores is proposed in 1984-85 against the allocation of RS.35.50 crores during 1983-84. It is programmed to complete Sriramasagar Project during the 7 th Five/Year Plan by providing necessary funds. In 1984-85 an allocation of RS.40 crores has been made for this Project. The extension of Kakatiya Canal under Sriramasagar Project from 234KMss. To 284KMs. Has already been sanctioned at an estimated cost of RS.96 crores and this project is brought under Stage-I. The Godavari Barrage Project has been completed and the benefits will be realised from this project from the coming year. The estimated cost of Srisailam Right Bank Canal is about Rs.220 crores and it is expected to irrigate 1.9 lakh acres in Kurnool and Cuddapah Districts. The Srisailam Left Bank Canal will irrigate an extent of 3 lakh acres in the drought prone are3as of Nalgonda District. Execution of the canal portion has already been taken up. The allocation for Somalis Project has been stepped up to Rs.9.35 crores in 1984-85 against RS.5.60 crores in 1983-84. The allocation for Journal Project in 1984-85 is held at Rs.6 crores. For Yeleru Project, an amount of RS/.10cores has been allocated for 1984-85 and efforts are being made to secure loan assistance from the Union Government to keep up to the schedule of supply of water to the Steel Plant by October, 1985. Preliminary works are being started on Polavaram Project. Discussions are being held for formation of a Control Board for Inchampally Project. The scheme for Pulichintala would be sent to the Government of India for their clearance. Efforts are being made to get clearance for Vansadhara Project State-II. Srisailam Right Branch Canal and Sriramasagar Project extension are in the pipeline for World Bank is expected by April, 1984.

Minor Irrigation

The allocation for minor irrigation has been increased to Rs.18.45 crores in 1984-85 from Rs.14.45 crores in 1983-84. Proposals for external assistance from the European Economic Community were sent for taking up 205 minor irrigation tanks for execution at a cost of Rs.82.25 cores. It is expected that this aid would be forthcoming by June, 1984.

Command Area Development

It is necessary to ensure optimum and equitable utilization of irrigation potential created, particularly, to help the small and marginal farmers in the tail-ends to have assured timely land disciplined irrigation. It is also necessary to implement measures for integrated water management, optimum use of water sources, regulation of cropping pattern. Government are implementing several measures for achieving the above objects. Under integrated water management and intensive agriculture, the Sixth Plan targets have been achieved. There was considerable step up in the amount of short-term credit disbursement. From a modest beginning of Rs.3.18 crores disbursement in 1974-75, the amount disbursed during 1983-84 (up to December 1983) was RS.79.00 crores. The target for 1983-84 has already been achieved ahead of schedule.

In addition to the four major Commands of Sriramasagar Project, Nagarjunasagar Right Canal, Nagarjunasagar Left canal and Tungabhadra Pr4oject complex, proposals were sent to Government of India for approval of the scheme for intensive command area development activities in the six new projects,i.e., Vamsadhara, Gandipalem, Swarna, Sathanala, Taliperu and Pedda Vagu. Of these, three projects, i.e., Vamsadjara. Swarna and Peddavagu have been cleared by the Government of India.


The importance of power sector needs no emphasis. Plan allocation for power sector for 1984-85 has been stepped up to Rs.200.00 crores from the level of Rs.146.00 crores in 1983-84.

During 1983-84 additional capacity of 265 M.W. would be added to the system. The Third Unit of 110 M.W. at Srisailam has already been commissioned apart from 30 M.W. in the Nagarjunasagar Right Canal Power House and 25 M.W. at Donkarai Canal Power House.

The First Unit of 100 M.W. capacity at Nagarjunasagar Pumped Storage Scheme, Stage-II is expected to be commissioned by March, 1984 with which the installed capacity would go up to 3,048 M.W. including the State share from Central sector Power Projects.

Programmes For 1984-85

The generation capacity is proposed to be augmented by 310 M.W. in 1984-85, comprising of the second and third units of 100 M.W. each at Nnagarjunagar Pumped Storage Scheme, State-II and fourth generating unit of 110 M.W. at Srisailam. It is also proposed to renovate Kothagudem Thermal Power Station units at an estimated cost of RS.44.34 crores. An amount of RS.5.00 crores is allocated for this work during 1984-85.

The erecting of crest gates on Srisailam Dam will provide adequate storage capacity that would increase energy generation at Srisailam and Nagarjunasagar Power Stations. The work is expected to be completed in 1984-85.

The installed capacity available to the State including the State's share from Central Sector would go up to 3,513 M.W. from 3,408 M.W. in 1983-84 registering an increase of 15.25%.

Among the Thermal Stations in the State, Vijayawada Thermal Power Station won well merited appreciation and receied awards both at State and National level. Work on the second stage of the Project has been commenced and two units of 210 M.W. each are expected to be commissioned in 1987. An amount of Rs. 30.000 crores is allocated for this work for 1984-85.

To exploit the already created power potential at existing hydel reservoirs, three new hydel schemes, viz., Pochampad,Penna-Aobilam and Nagarjunasagar Left Canal Are proposed to be started. These schemes have been cleared by the Central Electricity Authority. An outlay of Rs. 6.00 crores is proposed for these projects in 1984-85.

To evacuate power from the hydel and thermal power stations to various load centres, the transmission net work is being strengthened and new sub-stations are programmed. An outlay of Rs. 35.15 crores is proposed for transmission Schemes.

To improve the voltage profile, the distribution system improvement works are proposed to be taken up in a big way. The out lay for distribution schemes is doubled to Rs.25.00 croes in 1984-85 as against Rs.12.90 crores in 1983-84.
Rural Electrification

Under Rural Electrification, the targets for 1983-84 were electrification of 1,000 villages and energisation of 45,000 pumpsets. By end of December 1983, 405 villages and 352 hamlets were electrified and 27,475 pumpsets energised. Out of 27.221 villages in the State 21,066 villages covering 77.38% of the total villages were electrified and 5.67 lakh agricultural pumpsets energised so far.

It is programmed to electrify 1,000 villages and energize 60,000 pumpsets during 1984-85 to meet the growing demand from the Agriculture Sector.

Special Component Plan for Scheduled Castes

Special care has been taken for electrification of Harijanwadas. An amount of Rs.453.15 lakhs is earmarked under Special Component Plan for electrification of 1,800 Harijanawadas and for release of 2,000 agricultural services, 150 Industrial Services and 4,000 other services to Scheduled Castes during 1983-84. Up to November, 1983, electricity is extended to 765 Harijanawadas, 1,356 agricultural pumpsets, 114 Industrial services and 2,175 other services.

A scheme has been drawn to provide one bulk per house for the houses constructed under Weaker Section Housing Programme. Under this scheme, it is proposed to electrify 240 Colonies and provide bulks in 7,5000 November, 1983, electricity is extended to 2,453 houses in 91 colonies under this scheme. 1,391 Colonies covering 77,459 houses are selected for electrification under this total scheme. Out of this, 1,086 Colonies are provided with street lights and 36,865 houses are extended supply up to November, 1983.

IN 1984-85, it is programmed to electrify 1,700 Harijanawadas, energize 5,000 agricultural pumpsets and release supply to 6,200 other services under this scheme. It is proposed to electrify 300 Weaker Section Colonies with 10,000 houses lit with one bulb for each house. The outlay for Special Component Plan is proposed to be stepped up to Rs.795 lakhs compared to Rs. 453.15 lakhs in 1983-84.

Tribal Sub Plan

During 1983-84, an outlay of Rs.186.26 lakhs was allocated under Tribal Sub-Plan for electrification of 200 villages and release of 400 agricultural and other services. By November, 1983,31 villages in tribal areas of Srikakulam, Vizianagaram, Visakhapatnam, East and West Godavari, Adilabad, Warangal and Kkhammam districts were electrified and 406 agricultural and other services were released. Apart from this, Rs.130 lakhs were allocated for Scheduled Tribes in plain areas for electrification of 200 Girijanawadas and to energize 2,000 agricultural pumpsets for Scheduled Tribes. Up to November, 1983, 161 Girijanawadas are electrified and 736 agricultural pumpsets are energised.

In 1984-85, the outlay is increased to Rs.318 lakhs to electrify 300 villages and release 400 services for Scheduled Tribes.


In the field of Industries accent has been on providing employment opportunities to the youth. For accelerating the growth of industries with particular attention to the utilization of locally available raw-materials and production of goods to fulfill local needs, improvements were effected in the structure and procedures.

During the year 1983, the State Government constituted a high-power body called "Andhra Pradesh Assistance Centre for Entrepreneurs" with the main objective of reviewing the progress made in the large and medium industries and also to sort out the problems and difficulties experienced by entrepreneurs in implementing projects. This body also provides escort services to entrepreneurs in securing licenses and clearances from various Government agencies to enable them to implement their projects expeditiously.

Taking advantage of the Government of India Scheme for providing composite loans to rural educated unemployed youth, Government have launched the "Gramodaya" scheme under which one youth in each village in the State would be covered enabling him to take up Industry/Business or Service activity.

In addition to the existing 15 Co-operative Sugar Factories in the Co-operative Sector, 3 new Co-operative Sugar Factories at Palair in Khammam District, Gurajala and Tenali in Guntur District would be commenced soon.

A Spinning Mill at Parchur in Prakasam District is proposed to be established. A proposal to set up 3 more Spinning Mills with World Bank assistance at Nandyal, Uravakonda and Gadwal is also under consideration.

Realising the importance of Sericulture in providing rural employment, Government have established cocoon selling markets at Ananthapur, Cuddapah, Chittoor and Hyderabad. 3 more cocoon markets are proposed during this year at Warangal, Krishna and Kurnool districts.

It is proposed to promote 6,200 small scale industries in the State during 1983-84 and against this target, 4,205 knits have already been grounded till the end of December, 1983. It is also proposed to establish 215 Rural Artisan complexes during this year.

Welfare of Employees

Our Government is very much alive to the problems of its employees. Hon'ble Members are aware that recently we had extended a number of concessions to them e.g., in order to enable low paid full time contingent employees to get the benefit of pension for their entire service, Government have allowed them to count the service prior to their becoming Government servants, as full-time Contingent employees also in full, for purposes of pension.

On the representation of the Associations of the employees, Government had sanctioned a loan assistance of Rs.1.50 crores to the Hyderabad Urban Development Authority for completing the construction of houses at Vanasthalipuram for the employees working in Twin Cities.

Accounts 1982-83
Against the Revenue surplus of Rs.42.92 crores estimated for 1982-83, the actuals for the year show a surplus of Rs.132.57 crores. The year closed with a plus cash balance of Rs.37.26 crores including the ways and means advance of Rs.26.71 crores received from the Reserve Bank of India and outstanding as on 31st March, 1983. After adjusting this ways and means advance, the year 1982-83 actually closed with a cash balance of Rs.10.55 crores as against the minus balance of Rs.20.00 crores anticipated in the Revised Estimate 1982-83.


The revised Estimate 1983-84 resulted in a Revenue surplus of Rs.35.10 crores against Rs.39.74 crores originally estimated in the budget for 1983-84. The overall transactions of the year as per the Revised Estimate show a deficit of Rs.110.46 crores as against Rs.113.06 crores estimated in the Budget Estimate for 1983-84. After taking into account the opening balance, the year is expected to close with a minus cash balance of Rs.73.21 crores.

Budget Estimate 1984-85

It is estimated that the transactions of the Revenue account will result in a surplus of Rs.67.65 crores against Rs.35.10 crores in the Revised Estimate for 1983-84.

The overall transactions of the year are expected to result in a gap of Rs.40.32 crores. After taking into account the estimated opening minus balance of Rs.73.21 crores, the year is expected to close with a minus cash balance of Rs.113.53 crores.

It is proposed to cover this gap by economies in non-development expenditure and additional receipts on account of buoyancy in the economy apart from additional assistance from the Government of India.


Justice Social, Economic and Political enshrined in our Constitution will not be realised unless in the process of development, we are able to ensure that the weakest sections of our society also partake of the benefits of development. We are convinced that equal emphasis on social and community welfare programmes along with programmes and projects for creation of productive assets alone can lead us on the path of balanced and rapid growth. Development of human resources is the key to a prosperous future. I am sure, all sections of this House would agree with me whole-heartedly in this approach and extend their co-operation to us in this endeavour.

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