Previous Budget Speeches




1985 - 86



Speech of Sri P.Mahendranath
Minister for Finance
Presenting the Budget for 1985-86
To The Andhra Pradesh Legislative Assembly
on 16 th August 1985



I rise to submit the Budget of Andhra Pradesh for the year 1985-86. Hon`ble Members may kindly recall that in the Session of the Legislature in March, 1985 the Vote-on-Account Budget was obtained for a period of six months upto the end of September, 1985.

I submit that there has been a distinct and demonstrable change in the emphasis on different sectors and design of programmes since 1983. In the Budget of 1983-84 reorientation of priorities was made in favour of welfare schemes. However, the legacy of past could not be totally whisked away. It had taken a tumultuous two years to bring about institutional changes such as abolition of Village Officers, to overcome avoidable political crises and to create an atmosphere where institutions and priorities could be considered in an integrated fashion. The launching of the Seventh Five-Year Plan and the massive mandate given to the present Government provide an opportunity to take stock of the situation and rededicate our efforts for the accelerated development oriented to the welfare of the poor.

Our Seventh Five-Year Plan has, as its primary objective, a higher rate of growth than ever achieved while stressing at the same time, increased allocations in favour of the irrespective of caste or creed. Needless to say, these would be supplemental to our basic strategy of improving access to food (through Rs.2 Kg. scheme), cloth (Janata Sarees and Dhoties), shelter (weaker sections housing), and extending social security (Window and agricultural pensions).

In formulating the Plan we are handicapped due to several uncertainities at the national level regarding even essential elements of Planning such as the distribution of resources among States. Indeed even the national development policy is yet to be firmed up by the National Development Council. Despite these, the first year of the Seventh Five-Year Plan of the State proposes to initiate an era of development with a difference not a soul-less development but development with a distinct purpose, viz., the welfare of the poor.

As I mentioned in my speech to the Assembly on the occasion of introducing the Vote-on-Account, the Annual Plan initiates the reorientation in the policies and priorities to be established in the Seventh Five-Year Plan period such as emphasis on Dry Land Farming, Horticulture, Sericulture, Irrigation especially Minor Irrigation, Rural Electrification, Vocationalisation, Welfare of Women and Youth etc.

Further, in making the budgetary proposals now placed before you, the recommendations of the Finance Commission in respect of upgradation of standards of administration and the effects of transfer of some of the Plan expenditure of the Sixth Plan to Non-Plan at the commencement of the Seventh Plan have been taken into account. In this context, I would like to urge the Members of the Assembly to appreciate that the total outlay on the development will be more than what is apparent in the Plan outlay of Rs. 1044 crores in as much as some Plan activities of the last year costing over a hundred crores have been transferred and shown as committed expenditure in the Non-Plan.

Viewed as a whole, the development activity of all sectors is so arranged that there is acceleration all around.

Keeping in view the overall thrust of the Seventh Plan and in particular the establishment of Mandals, a number of schemes have been taken in after a thorough review of the activities in each department at the ministerial level. Permit me to briefly narrate the economic trends and set out some of the important policy initiatives that have been incorporated in the Budget.

Review of Economic Trends

The State Income of Andhra Pradesh was at Rs. 10,264.54 crores at current prices for the year 1983-84 while it was at Rs. 4,212.37 crores at constant (1970-71) prices compared to Rs. 8,898.68 crores at current prices and Rs. 3,924.38 crores at constant prices in the year 1982-83.

The production of foodgrains touched an all time record of 118.82 lakh tonnes during 1983-84 due to favourable seasonal conditions. There is however an indication of set back in the production of foodgrains during 1984-85 due to the extensive drought conditions in the State and on account of floods during the year.

During May and the first week of June 1985, parts of the State received pre-monsoon showers on account of which land preparation for sowing of Kharif crops has been taken up briskly and sowing of early Kharif crops has been started.

In Industrial sector, 25 out of 48 selected industries registered increase in production during 1984 compared to the previous year. A significant increase in production is observed in the case of Heavy Electrical Industry, House Service Meters, Tanning Glass, Electronic equipment etc.

During the period January to May 1985, 30 out of 43 selected industries revealed increase in output compared to the corresponding period of previous year.

The generation of electricity in the State during 1984-85 rose by 8.3% compared to the previous year. During the period January-May 1985 it rose substantially by 16.6% compared to corresponding period of the previous year.

Compared to May 1984, the index number of wholesale prices of agricultural commodities in May 1985 rose by 9.8%.

During the year 1985 (January-April) the average consumer price indices for industrial working class for 8 selected centres of the State was 532 during the corresponding period of last year recording an increase of 6.2%. During this period the All India average price index was 588 as compared to 560 for the corresponding period of the previous year.

Policy Initiatives

Permit me Sir, to narrate some of the important policy initiatives that have been incorporated in the budget. I would begin by putting the policy and philosophy of this Government in terms of a total perspective within which the various budgetary proposals have to be considered. Early in my speech I had mentioned about our efforts to launch a policy of development with a difference. I would like to elaborate it at this juncture.

Development has no meaning unless it is meant for the upliftment of the weaker sections and welfare of all the poor people and the neglected segments like women. It is recognition of this that our Government launched upon a package of measures that would give an immediate relief to the people and that thrust is being continued this year also, be it, under Plan or Non-Plan. This includes the provision made for public distribution system in particular for Rs. 2 per Kg. rice, pension for agricultural labourers, pension for widows, etc. In addition it is proposed to provide maternity allowance for women working as agricultural labourers, assured income for craftsmen in the field of handicrafts and additional facilities for weavers, upgradation of existing buildings and amenities for the Scheduled Castes, Scheduled Tribes and Backward Classes, provision of clothes and text books for all the younger children from poorer families and intensive health care through the health card system for all the school going children.

Secondly, it is not possible to bring about either development of welfare unless fundamental changes in the institutions are made. Accordingly, the archaic system of Village Officers have been abolished and Mandal Revenue set-up has been introduced. It is now proposed to set up developmental institutions also at the Mandal level. A shore Development Authority has also been started to advise the Government on the comprehensive development of shore region including the human resource development. Fight against corruption has to be continued and a separate department for vigilance with an advisory board has also been established in addition to the institution of Lokayukta.

Thirdly, the development of people has to be viewed in the context of their history and culture. In our case we have to preserve and develop an awareness of our culture while at the same time projecting these to the rest of the World. To achieve these objectives, Telugu Vignaana Peetham has been set up and a massive programme for tourist development emphasising our history and culture has been launched.

Fourthly, productive capabilities will have to be immediately galvanished. It is noticed that much of our agricultural growth has been in the irrigated areas. A beginning is made to remove this imbalance by emphasising dry land farming, horticulture and sericulture to cater to backward, drought affected and tribal areas. We have to release and exploit the production capabilities of vast tracts of our State if we were to lay a solid foundation for sustained and widespread development. Similarly, in the field of industry, creation of facilities, provision of credit and use of governmental instruments as catalysts are essential at this juncture.

Fifthly, growth is not possible unless the Government takes upon itself the responsibility of substantial investments in the field of economic infrastructure. It is for this reason that a combination of measures to ensure provision of irrigation facilities through major and medium sources, fresh start in projects of crucial importance to the State, efforts to complete longstanding medium irrigation Projects, urgent exploitation of minor irrigation potential are planned. Simultaneously it is proposed to consolidate the gains made by the State recently in the field of generation and expand these facilities to backward areas. Emphasis is also laid on quality of power supply and energisation of pumpsets. Infrastructural facilities for development of road and transport net work, Animal Husbandry, Fisheries and even Forestry can be considered as investments in economic infrastructure and these have been accorded greater attention. To those who are keen to know let me mention that investments in economic infrastructure account for more than half of our plan outlay.

Finally, social infrastructure is yet another area of importance primarily as an investment in human rescues development. Provision of proper environment in terms of building and equipment, emphasis on physical education and making education mare purposeful through Vocationalisation are some of the features of the education plan. Technical education including craftsmen training has to be diversified to suit the modern times and exclusive facilities for women are also being expanded. Above all, priority being attempted in addition to all other concessions available to identified weaker sections. Health facilities, particularly in the rural areas, simultaneously emphasising Indian system of medicine are being given a pride of place. More than curative aspects, matters relating to water supply and sanitation are provided serious attention.

Needless to say Sir, that I have made a reference to some schemes to illustrate the basic thrust that is being adopted. I would now proceed to the traditional discourse on provision made in individual sectors.


The allocation for Crop Husbandry including Research and Education during 1985-86 is Rs. 14.72 crores.

The department has been geared up to educate the farmers in modern agricultural technology and to arrange adequate timely supplies of inputs namely seeds, fertilizers and plant protection chemicals to the farmers in the State. It is proposed to supply 40,000 tonnes of High Yielding variety seeds and 12.20 lakh tonnes of fertilizers. The State is also participating in the national projects for development of oil seeds and pulses in our area.

Since most of the total arable land is under dry land farming and is in the occupation of Small and Marginal Farmers, schemes have been taken up to intensify the development efforts in dry land farming. About 295 water sheds are proposed to be developed under dry land farming to demonstrate the efficacy while an integrated development of 22 water sheds of 2,000 hectares in each district are being developed on a pilot basis. Under these water sheds, the land development, crop development, pasture improvement, social forestry, sericulture, fish farming and development of minor irrigation sources will be taken up. comprehensive Crop Insurance Programme involving a budgetary provision of Rs. 3 crores has been introduced. Preparatory work on three new Agriculture or Veterinary Colleges is being funded.


The main strategy in the field of Horticulture is to give greater emphasis for the production of large number of quality plant material by establishing new progency orchards. The propagation will be concentrated in the backward and tribal areas. It is proposed to produce during 1985-86, 10 lakh grafts, cuttings, layers, etc., in an area of 5,000 hectares. In order to encourage fruit and vegetable growers by providing remunerative price to their products, a scheme for developing proper market for Horticulture products is proposed at an estimated cost of Rs. 9 lakhs.

Against the allocation of Rs.47.20 lakhs during the year 1984-85, Rs. 90 lakhs have been allotted during 1985-86 for various schemes under Horticulture.

Animal Husbandry

In recognition of importance of livestock in rural economy, Government propose to increase the number of veterinary dispensaries and disperse them widely throughout the State and to improve the quality of service provided. It is proposed to provide one Veterinary Institution in-charge of a Veterinary graduate at the headquarters of each of the 1,104 Revenue Mandals by starting 173 new institutions where there are no such institutions now and by upgrading the existing lower cadre dispensaries at 262 places into graduate dispensaries. It is also proposed to start a composite livestock farm for selecting best specimens of Ongole Breed and rear them at Chintaladevi which is well known for producing best Ongole Bulls. Further, a farm for multiplying and improving the Nellore breed of sheep through scientific breeding is being established at Chintaladevi itself. To meet the requirement of artificial insemination, a 4 th Frozen Semen Bull Station is being started at Banavasi, Kurnool District. With this, it will be possible to produce about 18 lakhs doses of Frozen Semen every year.

Adoption of Rabbit breeding by farmers is proposed to be encouraged for increased production of meat, fur-coats, caps, etc. An allocation of Rs.3.90 crores is made for Animal Husbandry for the year 1985-86.


The Hon'ble Members are aware that, with a long coast line, Andhra Pradesh is yet to exploit fully the marine resources. The fishing harbours under construction have been languishing. An allocation or Rs.2.52 crores is proposed to ensure early completion of these harbours. Two National Fish Seed Farms are being completed at Somasila in Nellore district. A pilot project scheme for brackish water prawn culture at Polekurru, East Godavari district has been completed and another one is being constructed at the same place. Under Bay of Bengal Programme, Government are considering the introduction of mechanized Beach Landing Crafts through a subsidy seedlings and elimination of middle men by encouraging Fishermen Co-operatives is being attempted. Government have proposed to take up "Matsyodaya" programme which includes the providing of housing, drinking water, electricity, education medical aid, training, supply of fish seed, yarn and nets for the welfare of fishermen. An allocation of Rs.6.51 crores has been made for Fisheries Schemes in the Budget 1985-86.


In the forest sector, the major thrust would be to intensify the programmes under Social Forestry taking advantage of both the nationally sponsored schemes as well as external assistance through CIDA.

During 1985-86 under various programmes of Social Forestry, 18,000 hectares of unproductive land will b e brought into productive use through afforestation with suitable and appropriate tree species and 1,600 lakh seedlings will be raised for distribution to the public mainly to the farmers planting in their own lands. In addition, the Forest Department and Forest Development Corporation plan to raise commercial plantations of species like Teak, Eucalyptus, Bamboo etc., over an extent of 7,400 hectares.

The allocation proposed for 1985-86 for the forest sector as a whole is Rs.12.05 crores.

The increased allocations are meant to achieve the social forestry targets for the year which are almost double that of last year.

Rural Development

In the broad area of rural developments, provision is made for joint efforts between Union and State Governments for implementing schemes like IRDP, DPAP, NREP, development of Women and Child in rural areas, assistance to small and marginal farmers for increasing the agricultural production. To utilize the support from the Union Government to the fullest extent, matching allocation towards State share of Rs 50.40 crores is provided in the Budget for 1985-86. A provision of Rs. 2 crores is made for payment of compensation under Failed Well Subsidy Scheme.

Cyclones Shelters and Disaster Management

Under this head, an allocation of Rs.2.16 crores is made for the year 1985-86. Of this, Rs. 1.81 crores are for construction of Cyclone Shelters. The balance provision of Rs. 0.36 crore is intended for taking up certain special programmes for the first time such as setting up wireless communications in Police Stations, Ham Radio Service, purchase of Bailey bridges and reserve boats on pilot basis and provision of base medical equipment at strategic points.


In the field of irrigation, emphasis is laid on early completion of projects benefiting backward and drought-prone areas of the State especially Rayalaseema, Telangana and upland areas of Coastal Districts. Further, intensive efforts are planned on projects of crucial importance to the State, to ensure fuller and integrated use of the water in major rivers. To achieve these, appropriate allocations have been made for the projects like Telugu Ganga, Srisailam Right Bank Canal, Srisailam Left Bank Canal and for extension of Kakatiya Canal under Sriramsagar Project, investigation of Polavaram Projects etc. With a view to accelerate the completion of all the on-going major, medium and minor irrigation sector including Minor Irrigation has been allotted an amount of Rs.289.27 crores for the year 1985-86 against the allocation of Rs.261.40 crores during 1984-85.

The provision for Telugu Ganga has been made at Rs.75 crores for the year 1985-86 against the allocation of Rs.60 crores for the year 1984-85. The work on main dam at Pochampadu was completed and Lower Manair Dam is nearing completion. The Kakatiya Canal has been excavated up to 234 Kms. Excavation of Saraswati Canal is nearing completion. A provision of Rs. 40 crores has been made for this project during 1985-86.

A provision of Rs. 20 crores is made for Srisailam Right Bank Canal during 1985-86 as against Rs. 5 crores in 1984-85. The Srisailam Left Bank Canal is designed to irrigate 3 lakh acres in drought prone areas in Nalgonda district. The main canal is under execution. A provision of Rs.15 crores has been made during 1985-86 against the provision of Rs. 3.50 crores in 1984-85.

The provision for Yeluru Reservoir Project has been fixed at Rs.10.50 crores. Efforts are being made to secure loan assistance from

government of India in order to keep up the time schedule for supply of water to Visakhapatnam Steel plant.

Apart from efforts to complete on-going medium irrigation projects at the earliest, special emphasis is planned on Vardarajaswamy Gudi, Kaulasanala and Buggavanka Projects. A provision of Rs. 20.51 crores has been made for medium irrigation projects for the year 1985-86.

For Minor Irrigation, an allocation of Rs. 33.70 crores has been made in the Budget for 1985-86. Of course this, Rs.15 crores is specially meant to benefit drought areas as was done last year. The line of credit of Rs.30 crores from European Economic Community is also meant to benefit drought prone and tribal areas.

Irrigation Utilisation & Command Area Development

This year, we propose to continue our efforts to bridge the gap between the creation and utilisation of irrigation potential. Through the efforts of CADA up to the end of March, 1985, 4.55 lakh hectares were brought under Systematic Canal Operation, 1.90 lakh hectares under Warabandi, 3.58 lakh hectares under Soil Survey and 4.71 lakh hectares under Topographical Survey. Ayacut roads were completed to a length of 936 Kms. An amount of 28.60 crores under long term credit and Rs. 125 crores under short term credit were availed of by beneficiary farmers for systematic land development in the four select major command areas. It has been decided to take up intensive command area development activities under Vamsadhara Project also. An allocation of Rs.10.03 crores has been made for this sector.


The outlay proposed for power during 1985-86 is Rs.18025 crores of which Rs.170.00 crores are for the schemes of A.P.S.E.B., Rs.10.00 crores for Srisailam Hydro-Electric Project and Rs.0.25 crores for new sources of energy.

During 1984-85, 310 MW generating capacity was added by commissioning the 4 th Unit of 110 MW at Srisailam and the first and second units of 100 MW each of Nagarjunasagar Pumped Storage Hydro Electric Schemes (Stage-II) increasing the installed capacity to 3,156 MW by the end of March, 1985. In the year 1985-86 it is proposed to increase the generating capacity by 210 MW by commissioning the 3 rd Unit of 100 MW of Srisailam Hydro-Electric Scheme (Stage-II), thus enhancing the total capacity 3,366 MW by March, 1986. To improve the voltage profile and to ensure reliability and quality of supply, the distribution and system improvement works are proposed schemes are increased to Rs.32.26 crores in 1985-86 from Rs.25.00 crores in 1984-85. This year we propose to electrify 800 villages, energies 68,000 to 78,000 agriculture pumpsets. With a view to benefit the Weaker Sections, special efforts will be made to electrify 1,674 Harijanwadas and 600 Tribal villages and energise 5,000 agricultural services of Scheduled Castes and 2,000 agricultural and other services of Scheduled Tribes.

Industry and Minarals

The allocation for this sector for the year 1985-86 is Rs.562.27 crores comprising of Rs.17.62 crores for Village and Small Industries, Rs.28.39 crores for Medium and Large Industries and Rs.6.26 crores for Mining.

In the field of Industry, emphasis is on the Government playing the role of a catalyst to mobilise increased private investment, while the existing public sector Units would be provided better management and resources to grow vigorously. Taking note of the good performance of the State Finance Corporation, a massive step up of provision for this Corporation has been made to enable it to extend timely and adequate finances to all medium and small scale industries. The development of Electronics is a key element of our industrial strategy and funds have been provided for it.

Under Handlooms and Textiles, the new schemes contemplated are establishment of State Level Institute for training of Weavers and for providing research-cum-service facilities on design, etc. It is proposed to intensify and complete the viability programme of the Primary Co-operative Societies. This year, the programme of providing workshed-cum-residential housing for weavers will be expanded.

In the Handicrafts sector, new schemes for providing assured and continuous income to the Craftsmen and for providing them work-cum-residential housing sheds is being initiated. IN addition it is proposed to bring out some publicity material to show the uniqueness of the crafts and the craftsmen of Andhra Pradesh. Under Sericulture, institutional infrastructure is being created to benefit the drought affected and tribal areas by substantially increasing the allocation from Rs.1.30 crores in 1984-85 to Rs.2.50 crores in 1985-86.

Transport and Communications

The allocation for transport and communications for the year 1985-86 is Rs.60.74 crores against Rs.51.84 crores during the year 1984-85. The allocation for roads has been increased by about 20% to make a beginning in order to fill in the large gap in the road facilities in the State. The allocation for the Plan of APSRTC has been made at Rs.40.52 crores to help the augmentation of 596 additional vehicles and replacement of 1,000 vehicles. The allocation for Minor Ports is Rs.110 lakhs. It is proposed to convert Kakinada Port as a Major Port and the matter has been taken up with the Government of India.


The tourism sector is being given special consideration this year with the twin objective of highlighting our history and monuments and putting our State in the All India Tourist Map as a centre of National importance. With the above objective, in addition to Rs.1.54 crores being provided under non-plan, a massive step up is made from Rs. 8 lakhs in 1984-85 to Rs.300 lakhs under plan in 1985-86 for the activities of the Travel and Tourism Development Corporation.


In the field of education, the emphasis is on providing proper environment, amenities to poorer children, making education purposeful and encouraging and recognising merit irrespective of caste or creed.

A massive programme of construction of buildings for schools has been taken up under various employment schemes in the rural areas supplemented by an allocation of Rs.1.30 crores exclusively for school buildings in urban areas.

A great emphasis is now being laid on physical education. It is decided to have a compulsory physical training for every class by providing full time or part-time teachers and equipment. Yoga will be introduced in the higher classes.

As amenities to poorer children, it has been decided by the Government to supply 2 dresses and text books free of cost to all the children of green card holders studying in Classes 1 and 2. An allocation of Rs.6 crores has been made for this purpose.

Government have already introduced vocational education for students studying 8 th Class in 105 schools covering 9 trades in seven districts to begin with. It is proposed to extend this scheme to 240 more schools this year to cover the remaining districts.

Government have introduced a new scheme of awarding prize money based on merit in the public examinations held for Classes 7 th , 10 th and Intermediate. This would be in addition to any scholarship or other aid to which they are eligible. Three hundred meritorious students from each district will be awarded prize money will be recurring till the holders take the next public examination. To begin with, an amount of Rs.46 lakhs has been provided in the budget for 1985-86 to benefit 6,900 students.

The Government also propose to have a High School for every Mandal Headquarters and a provision of Rs. 50 lakhs has been suggested to open Eighty Class this year in Mandal Headquarters not having such a facility.

Telugu Vignana Peetham

A final shape is being given to the Telugu Vignana Peetham. The existing academies like Nataka Academy, nruthya Academy, Sahitya Academy, etc., are amalgamated with the Peetham. The Telugu Vignana Peetham would undertake studies on history of Telugu language, literature, drama, dance, music, sculpture paintings etc., which would contribute for the proper understanding of the role of Telugus in the National scene. An allocation of Rs. 4 crores has been made for the activities of Telugu Vignana Peetham during 1985-86 which should also enable it to obtain recognition from University Grants Commission.

Medical and Public Health

The plan outlay for Medical and Health Services for the year 1985-86 has been stepped up to Rs.24.76 crores from Rs.17.63 crores during 1984-85.

This Government feel that the rural areas have to be given priority in the matter of providing medical and health facilities to the people. We propose to do this by covering all the Mandals with a Primary Health Centre/dispensary by opening Primary Health Centres/Dispensaries in 334 Mandals. Where there are no medical facilities at present. Similarly we plan to provide in each mandal headquarters a dispensary in ayurveda, unani or homeopathy system within three years. This year, it is, therefore, proposed to open 252 such dispensaries.

Government have also decided to strengthen and revitalise the school health services in the State and propose to introduce medical check up for 6 million school-going children in the age group of 6-11 years with a financial commitment of about Rs. 3 crores.

A State level study group has been formed to formulate a plan of action for efficient rural health delivery system and to explore and suggest ways and means for phased upgradation of existing medical and health facilities in the rural areas.

Under the minimum needs programme for which an allocation of Rs.700 lakhs is made for 1985-86, it is proposed to construct buildings for 200 sub-centres and establish 100 primary Health Centres. It is a matter of pride to inform the Honourable Members that Osmania General Hospital is the Fifth Hospital in the Country to provide Kidney transplantation service which is done free of cost to the patients and over 25 Kidney transplantations have already been done there. In addition to the operations like valve replacement, correction of congenital defects, removal of tumours etc., the specialists of the Nizam Orthopaedic Hospital have performed successfully coronary angioplasty, a delicate operation to remedy heart aliment on a patient.

Rural Water Supply and Sanitaion

For the year 1985-86, an amount of Rs. 17 crores has been allocated to cover 1,440 villages. In addition to the State allocation of Rs. 17 crores, funds to the extent of Rs. 5 crores is expected from the Government of India for taking up the rural water supply schemes under accelerated rural water supply programme.

Under Rural Sanitation, a programme called "Vimukthi Programme" was launched in 1983-84 to liberate scavengers without any economic dislocation and to project the privacy and dignity of women by constructing individual as well as community latrines. During the year 1985-86, it is proposed to extend this scheme to all areas where the panchayats of Mahila Mandals are willing to undertake the maintenance of the facilities.

Vimukthi Programme in Urban Areas

A similar scheme for the urban areas to provide new latrines and to convert dry latrines into "Water Seal Pour Flush Sanitary Latrines" is also under implementation. During the year 1985-86, an allocation of Rs. 5 crores is made to carry forward the programme with greater vigour.

Development of Hyderabad Old City

Through reconstitution of the Quli Qutub Shah Urban Development Authority as a Society, it is proposed to develop Hyderabad Old City by implementing a comprehensive programme of laying roads, drains, construction of Mini Stadium in the City College grounds and Auditorium, Medical Care Centre and Polytechnic. Authorisation has been given for taking up schemes estimated to cost Rs.10 crores. An allocation of Rs.4 crores is made now to meet the anticipated expenditure on these schemes during the year 1985-86.

Technical Education

In order to meet the demand for technically qualified persons, it is proposed to expand and strengthen our technical education facilities. This year, we propose to open four new Women's Polytechnics at Palamaner in Chittoor District, Nizamabad, Cuddapah and Hindupur in Anantapur Technicians Courses offering post-diploma courses in Engineering at Hyderabad, Visakhapatnam and Tirupati, a Government Polytechnic at Narsipatnam in Visakhapatnam District, a Polytechnic in the Old City area in collaboration with Quli Qutub Shah Urban Development Authority. It is also proposed to introduce additional diploma courses in the existing institutions, four-year part time Degree Courses for Diploma holders and three-year Day time Degree Courses for Engineering and Diploma Holders.

In order to modernise the existing laboratories and workshops in Polytechnics and other technical institutions, it has been proposed to replace the obsolete and worn-out equipment at an estimated cost of Rs.4 crores.

Crafts Training Schemes

During 1985-86, it is proposed to establish an ITI at Patancheru and two ITIs for Girls at Nalgonda and Visakhapatnam. Training in new trades like Computerisation, Electronic Instrumentation etc., is being provided in various ITIs. Additional seats at ITI Jammalamadugu are also palanned. Training of 500 displaced persons on account of land acquisition for visakhapatnam Steel Plant is contemplated.

For the implementation of the above schemes, an allocation of Rs.92.50 lakhs has been made in the budget for 1985-86 against the provision of Rs.64.35 lakhs in the year 1984-85. In addition to the above, an amount of Rs.2.10 crores has been separately allocated to modernise the Government ITIs by replacing the old equipment with modern equipment.

Welfare of Scheduled Castes

Government have been attaching a great importance for the development of the Scheduled Castes. The Special Component Plan for Scheduled Castes is being implemented effectively in order to ensure comprehensive socio economic development of the Scheduled Caste Community. The special Component Plan encompasses every sector of Government activity and arrangements have been made for ensuring adequate budgetary allocations and suitable system of monitoring and review. The Government have been making substantial investments in the share capital of the Scheduled Castes Co-operative Finance Corporation which has been assigned a crucial role in the implementation of the economic development schemes for the Scheduled Castes. The budget provision during 1985-86 for share capital contribution to the Scheduled Castes Finance Corporation is Rs.7.14 crores. The Special Central Assistance provided by the Government of India has also been fruitfully utilized and implemented on need based programmes of the economic development of the Scheduled Castes. Government of India have also been addressed to step up the quantum of Special Central Assistance during 1985-86.

Apart from the development thrust through different plan schemes, the State Government are conscious of the need to eradicate social disabilities and discrimination and also to put down firmly any crimes against the Scheduled Castes and Schedules Tribes. Detailed instructions have been issued to the District Collectors other agencies Scheduled Castes and Scheduled Tribes. A comprehensive scheme of relief and rehabilitation of the victims of the atrocities has also been drawn up and is being implemented.

For the year 1985-86, an outlay of Rs.129.28 crores has been earmarked for the Special Component Plan for Scheduled Castes within the State Plan outlay and it is proposed to assist about two lakh Scheduled Caste families through various economic development schemes to enable them to cross the poverty line.

In order to provide quality education for the school going children of the Schedule Caste Community, Government have set up two Residential Schools in each of the Districts, with a strength of 200 students, one for the girls and another for the boys. While the schools are functioning in all the districts, the construction of buildings and other infrastructure is still in progress. For the year 1985-86, a provision of Rs.11.50 crores has been made under Plan for this purpose.

There are 1,929 Social Welfare Hostels for Scheduled Castes in prematric classes with a total strength of about 2.10 lakh boarders. During the year 1985-86, it has been proposed to rationalise the hostels and bifurcate them to make them administratively viable. In addition, it is proposed to open 66 new hostels with a strength of 100 boarders each. Eight hundred and twenty eight hostel buildings have been sanctioned and they are in various stages of progress. In order to provide additional buildings for the hostels apart from construction of new buildings, a programme for upgradation of existing buildings and provision of amenities particularly for girls hostels is being taken up.

An amount of Rs.6.50 crores has been provided for the year 1985-86.

House Sites for Weaker Sections

The acquisition of land for providing house-sites for the needy members of the Weaker Sections including Scheduled Castes, Scheduled Tribes and others is one of the important programmes of the State Government. During the year 1985-86, an amount of Rs.12.50 crores has been provided and it is proposed to provide house-sites to about 1,25,000 families.

Weaker Sections Programme

The Weaker Sections Housing Programme taken up by the Government has made further significant progress during the year. Honourable Members may recall that in the year 1983, a policy decision was taken to construct permanent houses to the poor.

During the last two years 1983-84 and 1984-85 more than 1,80,000 houses were completed and about 90,000 houses are under construction. For the year 1985-86, a programme of 1,40,000 houses has been approved and the implementation of the programme has just commenced. A provision of Rs.40 crores has been made in the budget for the Weaker Sections Housing Programme.

In this context, I would like to mention that our State is far ahead of all other States both in respect of allotment of house-sites and in construction of houses for the Weaker Sections.

Pensions as Social Welfare Measures

Honourable Members are aware that a scheme of pension of Landless Agricultural Workers whose age is 60 years and above was introduced from 1 st November, 1984. I am happy to mention that this scheme has been implemented widely throughout the State within a very short time and we have made efforts to cover about five lakh agricultural workers in 1984-85 itself. An amount of Rs.18.00 crores has been provided for this scheme under non-plan and an amount of Rs.3.00 crores under the plan for the year 1985-86. The pension scheme for widows is under implementation and a provision of Rs.2.94 crores has been suggested.

Apart from the pension for Agricultural Labour Workers, the existing old age pension scheme is being implemented with a provision of about Rs.8 crores.

Welfare of Backward Class

The allocation for welfare of Backward Classes has been made at Rs.17.70 crores for the year 1985-86. It is proposed to take up the opening of 50 Government Backward Class Hostels, Construction of 57 Boys Hostels and 58 Girls Hostels at a cost of Rs.6.19 crores and reimbursement of examination fee is estimated at Rs.22 lakhs. It is also proposed to provide bedding material at Rs.60 per bed by spending an amount of Rs.30 lakhs and to construct 110 Dhobi Ghats at the rate of Rs.50,000 each.

Wellfare of Scheduled Tribes

The allocation for the welfare of Scheduled Tribes during 1985-86 is Rs.14.00 crores. Out of this, it is proposed to spend Rs.8.09 crores on educational schemes, Rs.1.70 crores on other developmental schemes. Under education, it is proposed to spend Rs.6.95 crores for construction of buildings for Educational Institutions which is six times the expenditure in 1984-85.

A new scheme for admitting over 1,600 tribal children in best available schools is introduced besides providing pre-matric scholarships to about 25,600 day scholars. It is also proposed to increase the strength in the existing hostels and Ashram Schools by 4,000 seats. Under economic uplift scheme, margin money is proposed at Rs.2,000 per family to take up schemes costing upto Rs.10,000 per family.

By providing assistance for each family upto Rs.10,000 it is proposed to bring over 47,000 families above the poverty line during 1985-86.

Coffee plantation will be taken up in 5,000 acres by establishing Girijan Coffee Co-operative Development Corporation.

Five new horticulture Nursery-cum-training Centres were started besides converting four existing horticulture farms into horticulture nursery-cum-training centres during 1984-85. They are proposed to be strengthened during the year 1985-86 to meet the massive horticultural schemes started in the year 1985-86, under PODU, RLEGP and ITDA programmes. The existing sericulture infrastructure like seed centres are being strengthened during the year 1985-86 with necessary staff etc.

Women and Child Welfare

The programmes initiated by this Government for the welfare of Women and Children are well known to the Honourable Members. This year, these will be further intensified by providing maternity allowance to Women Agricultural labourers, setting up of training-cum-production centres for women in each district and by reorganising the department and integrating it with the Mandal set up. The allocation for 1985-86 is Rs.5.03 crores, for this sector which is more than double the provision in the last year.

To ameliorate the sufferings of proper women and children in the State, the Government propose to provide maternity allowance to the women working as agricultural labourers in their advanced pergnancy and one month after delivery. The agricultural labour women in 79 ICDS projects will be given assistance at the rate or Rs.20 per month for the three months after they reach advanced stage of pregnancy while in non-ICDS blocks, this assistance will be given at the rate of Rs.40 per month. This assistance will be provided for the first and second child births only. A provision of Rs. 2 crores is proposed for the year 1985-86.

Another important scheme proposed to be taken up is to start 16 mobile creches at work sites like quarries, irrigation construction works, agricultural fields where a minimum of 25 children of women labourers are available. The children will be provided nutrition, pre-basic education, care and protection from hazards at such sites.

It is proposed to expand the facilities available for diploma in commercial practice, sales-cum-marketing manager course, diploma in Pharmacy, food technicians course, electronic typewriting, printing, dyeing and dress making, receptionist course, typewriting and shorthand. Preference will be given to the inmates of departmental institutions like Children's Homes, Collegiate Homes and Service Homes etc.

In each District, a training-cum-production Centre will be set up exclusively for Women. To enable preparatory work, an amount of Rs.50.00 lakhs is provided.

During the year 1985-86, it has been proposed to start 46 Women and Child-care centres in all the districts which would provide pre-school education, facilities for creches for the children of working women of economically backward class and training in nutrition, health and child care, crafts etc., and training to the women.

Welfare of Physically Handicapped

A number of schemes are proposed to be taken up during this year for the welfare of the handicapped. Additional hostels and homes will be opened. Assistance would be extended by providing scholarships, supplying text books and note books, extending special assistance to handicapped law graduates and research scholars and starting some economic support schemes. The Andhra Pradesh Vikalangula Co-operative Corporation has been taking up a number of schemes for providing Prosthetic Aids, Mobility Aids and Educational Aids. Skill Development, Vocational guidance. A Braille Press, the first of its kind in Andhra Pradesh, is being set up for Printing Books in Braille Script for the Visually Handicapped. An allocation of Rs.2 crores has been made for implementing the schemes during 1985-86.

Welfare of Prisoners

The allocation made for welfare of Prisoners in the Plan for 1985-86 is Rs. 61050 lakhs.

Schemes have been introduced to strengthen the educational opportunities with special reference to Vocationalisation and facilities for gainful employment during the period of imprisonment. In addition, details of schemes are being worked out for taking care of the more vulnerable families of the long term convicts. Establishment of a printing press in Central Prison at Warangal is also programmed for 1985-86.

A.P Shore Areas Development Authority

The Government have constituted Andhra Pradesh Shore Development Authority to advise on adopting an integrated approach to land use and development of shore areas and vulnerable weaker sections inhabiting these areas.

A framework for an integrated and scientific development will be evolved by the authority so that the programmes in various sectors relevant to these areas are co-ordinated and implemented in an optimal manner.


In the system of democracy, the Government is by the people and for the people. All the systems approved by the Government shall be for the development and welfare of the people and the people also will participate in all spheres of the Government activities. In order to achieve the above objectives it is necessary to take the administration and the activities of the Government both under social and economic sectors nearer to the people. With the above objectives in view, the Mandals have been formed. To service the Mandals, a series of changes are being made in a nature of departments. Most of changes are in the nature of re-deployment of staff and marginal adjustment in the grades. Provisions have been made in individual sectors like Animal Husbandry, Education, Medical and Health including Indian Medicine, Marketing, Women Welfare to provide services for Mandals as part of the respective plans. In addition, funds from employment generating schemes are proposed to be used to build Mandal Buildings Complex. Further, a separate allocation or Rs.10 crores has been made for construction of buildings wherever necessary as a supplement to the sectoral allocations. Under Non-Plan also a provision of Rs.10 crores is made in the Budget for 1985-86 for meeting the expenditure on furniture, rents, stationery, printing of Gazette Notification etc., in addition to a provision of Rs. 5.24 crores for opening of Police Stations in the Mandals where there are no police stations at present.

Public Distribution System

I am happy to report that our Public Distribution System geared to supply Rs.2 per Kg. rice to the poor people is well established now. In 1984-85 the total procurement by Food Corporation of India as well as the purchases by the Andhra Pradesh State Civil Supplies Corporation Ltd., reached an all time high record of 26.04 lakh tonnes. The rice distribution has been organized through 32,698 Fair Price Shops covering 27,221 villages. Through the Vigilance Wing of the Civil Supplies administration, the malpractice of black marketing, hoarding, diversions, smuggling, failure to deliver the expected quantity of levy is checked. The fair price shops are not only distributing rice but also wheat, wheat products, sugar and edible oil, dal, jowar and kerosene under the Public Distribution System. Efforts are also under way to negotiate with the various manufacturing concerns and obtain at ex-mill price, various items of mass consumption like blades, soaps, cycle tubes and tyres, battery cells and certain varieties of clothing material.


Due to total failure of monsoon, the Andhra Pradesh State experienced severe drought during 1984-85 and 22 Districts out of 23 Districts were declared as drought affected and relief operations were implemented. Against the total estimated requirement of Rs.416.58 crores towards relief measures, the Government of India have communicated a ceiling of Rs.54.42 crores towards relief measures, the Government of India have communicated a ceiling of Rs.54.42 crores including Rs.7.84 crores as loan for expenditure on relief measures. Against the above ceiling, the State Government spent Rs.56.74 crores during 1984-85.

As the severity of the drought conditions continued up to June 1985, the Government of Andhra Pradesh further intensified the relief measures during the year 1985-86 also. After repeated pleas by the State Government, the Government of India communicated a ceiling of Rs.30.80 crores for expenditure on relief measures in the year 1985-86 and the entire amount has been released to various executing agencies and the works are in progress.


In November 1984, the State was affected by cyclone causing extensive damage in the districts of Nellore and Chittoor. Against the estimated requirement of Rs.124.86 crores towards relief, rehabilitation, repairs and restoration of damaged works, the Government of India prescribed a ceiling of Rs.37.80 crores. The State Government, however, released a total sum of Rs.42.80 crores during the years 1984-85 and 1985-86 for expenditure on these schemes.

Clean Administration

This Government promised to provide a clean administration to the people. While strengthening Anti-Corruption Bureau, with the objective Lok Ayukta and Upa Lok Ayukta have been established on 1 st November, 1983. Recently, a new department called "Vigilance and Enforcement Department" has been created and a State Vigilance Advisory Board under the Charimanship of the Chief Secretary has been formed.

Welfare of Employees

The Government are fully aware of the need to look after the welfare of the employees whose primary purpose is to serve the people at large by faithfully and honestly implementing the laws and policies of the Government. Accordingly, as and when the Government of India are sanctioning the increase in the rate of dearness allowance the State Government are also extending the enhanced rate of dearness allowance to the State Employees.

Further, the Government have appointed a Pay Revision Commissioner with a Senior Officer to look into the anomalies in the scales of the employees, to explore the need for a possible regrouping of pay scales and also examine to what extent the existing dearness allowance can be merged and a new set up of pay scales can be evolved. Pending receipt of recommendations of the Pay Revision commissioner, Government have sanctioned the payment of interim relief to the employees at the rate of Rs.35 per month to those drawing pay in the scale of Rs.410-625 per month and below and at the rate of Rs.75 per month to those drawing pay in the scale of above Rs.410-625 with effect from February, 1985. For the purpose a provision of Rs.22.81 crores has been made in the Budget for 1985-86.

Moreover, several concessions like reimbursement of educational expenditure of their children, sanction of house building advance, enactment of leave, leave travel concession have been extended to the teachers of Panchayati Raj Institutions. For this purpose, a provision of Rs.13.43 crores has been made in the Budget for 1985-86.

Annual Plan

The Planning Commission approved for 1984-85 a plan of Rs.918.31 crores excluding provision for Telugu Ganga Project. Including the provision of Rs.60.00 crores made for this project, a total outlay of Rs.978.31 crores was provided in the Budget for the Annual Plan 1984-85. The Plan Outlay for 1984-85 was however, revised to Rs.1,021.39 crores taking into account changing circumstances. Against this, the actual expenditure reported by the Departments was Rs.923.02 crores mainly due to the need to restrict the expenditure to the Plan Outlay approved by the Planning Commission and the resource position of the Government.

The State Government presented to the Planning commission a Draft Plan of Rs.7,500.00 crores for Seventh Plan and Rs.1,170.00 crores for the Annual Plan 1985-86. The Working Groups constituted by the Planning Commission discussed these proposals in the meetings held at New Delhi on 28 th January, 1985. Pending finalisation of the Plan in the discussions between the Deputy Chairman, Planning commission and the chief Minister, an outlay of Rs.1,044.00 crores was provided for the Annual Plan 1985-86 in the Vote-on-Account Budget.

Subsequently, discussions took place between the Deputy Chairman, Planning Commission and the Chief Minister at New Delhi on 18 th April, 1985. In these discussions the resources available for the Annual Plan were assessed by the Planning Commission at Rs.810.00 crores excluding the Tamilnadu's contribution for Telugu Ganga Project.

However, taking into account the availability of resources including the recent efforts made for mobilisation of rescues and reasonable expectations on the outcome of the discussions in the National Development Council, the State Government have now formulated a Plan with an outlay of Rs.1,044.00 crores. Having heard the programme-content, I am sure the Honourable Members would endorse our view that these outlays are well conceived given the resources and the needs.

Accounts 1983-84

Against revenue surplus of Rs.35.10 crores estimated for the year 1983-84, the actuals of the year revealed a deficit of Rs.88.57 crores. The year closed with a minus balance of Rs.16 crores taking into account the credit for ways and means advance of Rs.59381 crores from the Reseve Bank of india. After adjusting the ways and means advance, the year 1983-84 actually closed with a minus balance of Rs.75.81 crores as against the estimated minus closing balance of Rs.73.21 crores.

Revised Estimate 1984-85

The Revised Estimate 1984-85 revealed a revenue deficit of Rs.133.14 crores against the surplus of Rs.67.65 crores originally estimated. The year was expected to close with a plus balance of Rs.1.03 crores assuming a medium term loan assistance of Rs.314.65 crores from the Government of India to clear the estimated deficit for the year 1984-85.

Budget Estimate 1985-86

As against the anticipated opening balance of Rs.1.03 crores for the year 1985-86, the year started with an opening deficit of Rs.231.79 crores since the assumed medium term loan assistance from the Government of India was not received during the year 1984-85. Subsequent to the presentation of Vote-on-Account Budget, several changes like introduction of additional resource mobilisation measures, announcement of medium term loan assistance by Government of India, additional central assistance for State Plan, etc., under receipts side, sanction of interim relief to the employees, State advised price for sugarcane, certain concessions to the teachers of Panchayati Raj Institutions, provision for Mandals etc., under expenditure side have taken place. The net effect of all these changes are that the revenue deficit has been reduced to Rs.65.50 crores from Rs.149.17 crores in the Vote-on-Account Budget and the year 1985-86 is estimated to close with a minus balance of Rs.119.31 crores against the minus balance of Rs.257.71 crores estimated in the Vote-on-Account Budget 1985-86. However, we are hopeful that this deficit will not materalise as the outstanding issues with the Government of India regarding resources to be given to the States of Central Taxes and Central Assistance for State Plans would be resolved during the current year itself. Our Government has been pressing the Union Government to introduce Consignment Tax which has been recommended by several Expert Committees and to increase the rate of Central Sales Tax which has stagnated at 4% for over a decade. Further, the share of market borrowing for the State Government, has been drastically changed over the years in facour of the Central Government and this needs to be reversed and an equitable share in the Market Borrowing has to be allocated, especially to our State. Furthermore, the quantum and division of Central Assistance as between the States are yet to be considered in the light of the new cirsumstances in the National Development council. It is our calcutation that these very reasonable requests to the Central Government for which a number of other States are also pressing, could be taken up by the National Development council at its next meeting and a rational and fair solution would be found for these issues. While the magnitudes of the resources to our State as a result or these measures cannot be quantified at this stage, we can reasonably expect that the year would not end with a deficit.

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