Previous Budget Speeches





Minister for Finance



ON THE 21st February, 1986.




I rise to present the Budget of Andhra Pradesh for the year 1986-87. Hon’ble Members may recall that the House had approved in September, 1985, the budget proposals for 1985-86, involving a number of policy-thrusts and initiatives. I am happy to say that the Government have every reason to look back with satisfaction. Naturally, the primary thrust of the present budgetary proposals would be to carry forward those policy initiatives, consolidate the gains and capture the goodwill and enthusiasm of the people for furthering our goal of "development with a difference."

Thus, in making our budgetary proposals, we start with a sense of satisfaction and confidence- satisfaction with the response f the people, particularly the poor, to our policies and confidence due to the success of the Government in mobilizing resources for meeting the budgetary obligations.

At the same time, our confidence has to reckon with some serious constraints well beyond the control of the State Government. We are still going through a serious drought in most parts of the State and our expectations of assistance from the Union Government on matters of drought relief have been belied. The efforts by the State Government to hold the price line through schemes such as Rs.2/- Kg., rice, are under stress due to unforeseen increases in issue prices of grains by Food Corporation of India recently. Consequent upon the judgement of Supreme Court, the State Government had to pay compensation to retirees running into several crores.

On top of these unforeseen developments adversely affecting our financial position, a number of outstanding issues with the Union Government such as levy of consignment tax, increase in Central Sales Tax, etc., remain unattended. Further, the Union Government indicated that the net Central assistance likely to flow to the State Plan in 1986-87, would be less than that of 1985-86. Even so, our commitment to accelerated development oriented to the welfare of the poor will be demonstrated. These obstacles have only strengthened our resolve not only to maintain but also to increase planned activities in the State. We intend presenting a plan with an outlay of Rs.1,210 crores for 1986-87. Permit me, Sir, now to briefly narrate the economic trends and set out the policy frame incorporated in the budget.


The general economic situation in the State during the year 1984-85 revealed mixed trends registering an increase in industrial production and a decline in agricultural production. The State income at current prices had marginally increased from Rs.11,061 crores in 1983-84 to Rs.11,083 crores in 1984-85. This implies that State income at constant prices and per capita income had declined in the corresponding period reflecting the damage done to the economy by the cumulative effect of successive droughts.

Thus, on account of severe drought in the State there was a decline in the area under kharif and consequently decline in the production of food-grains. During the year 1984-85, production of food-grains is estimated to have declined to l96.15 lakh tonnes as against all time record of 118.82 lakh tonnes in 1983-84. It is expected that the food-grains production during rabi 1985-86 would be slightly more than that in the previous year. The total rainfall received by the State during the South-West monsoon period (June-September) of 1985 was 506 mm., which was a deficit by 16% over the normal rainfall of 602 mm.

Ink the industrial sphere 32 out of 43 selected industries registered an increase in output during the first 10 months of the year 1985 as compared to the corresponding period of the previous year.

During the year 1985-86, the average consumer price index for industrial workers for 8 selected centres in the State was 574 against the All India average of 604. The average consumer price index number during the ten months period revealed an increase of 4.7% at the State level over the corresponding period of the last year as against a rise of 5.4% at the national level.


I had occasion to place before you, in detail, the policy and philosophy of this Government in my last budget speech. I had called it a development with a difference, not a soul-less development but development with a distinct purpose viz., the welfare of the poor. I do not want to repeat it, but, suffice to say; there were six major components of the policy initiatives viz., (I) immediate relief to the poor through Rs.2/- Kg, rice, subsidized cloth, weaker sections housing, allowance for the pregnant women etc., (ii) fundamental changes in institutional set up such as establishment of Mandals, Shore Area Development Authority, District Planning Board, Lokayukta etc., (iii) cultural awareness and progress such as establishment of Telugu Vignana Peetham, conduct of Filmotsav, tourist development etc.,(iv) enhancement of productive capabilities particularly in dry, backward, drought affected and tribal areas, (v) emphasis on economic infrastructure mainly in the areas of irrigation and power and (vi) expansion and decentralization of social infrastructure mainly in the areas of education and health. Consistent with this, a large number of activities and schemes have been launched in 1985-86. Theses have to be continued and the gains consolidated.

Permit me, Sir, to say this: our policy initiatives have already started bearing fruit. The enthusiasm of the people to be involved in the development process is overwhelming. The Government have therefore launched "Telugu Grameena Kranthi Patham" Briefly stated it is a project of the people, by the people and for the people. Government helps with technical guidance through engineers etc., and material support up to 50% of the total cost. Response has been so overwhelming that the Government had to allocate Rs.11 crores in 1985-86 and in 1986-87 it would cross a level of Rs.60 crores.

Simultaneously, the Government felt that proper balance be maintained between developmental activities in the rural and urban areas. The long neglected capital city demands immediate attention. So, additional allocations have been made in 1985-86 and the tempo is proposed to be continued in 1986-87 also. Yet another important area of emphasis in the year 1986-87 would be the schemes related to water supply in twin cities. The efforts range from emergency measures initiated in 1985-86 to enhanced allocation in 1986-87, for water supply and related measures and further to seeking World Bank assistance for a long term sanction by obtaining water from Godavari.

Needless to say. Sir, that I have made a reference only to the policy frame and some major features. May I now proceed to the traditional discourse on provisions made in the individual sectors.


The budget makes appropriate provisions for the continuation of the crop insurance programme, Integrated Water Shed Development , dry land farming in both red and black soils, distribution of high yielding variety seeds at Rs.2 per Kg., special programme particularly in the area of dry land farming for small and marginal farmers etc. The State Government also intends to take full advantage of the National Water Shed Development Programme (NAWAPRAG) for conserving soil and moisture. Keeping these developments in view, the outlay for dry land farming has been enhanced to Rs.4.74 crores in 1986-87 from a level of Rs.1.00 crore in 1985-86. The failed well subsidy scheme is also brought under Crop Husbandry Programme and the outlay is retained at Rs. 2 crores for 1986-87.


The State plan allocation for marketing has been increased from the current year’s level of Rs.25 lakhs to Rs.90 lakhs in 1986-87. During 1985-86, 4 additional markets have been notified under the provisions of the Markets Act, bringing the total number of markets to 603 by end of December’85, with the ultimate objective of providing a regulated market within the easy reach of farmers, 226 agricultural market committees have been constituted to exercise supervision and control over the functioning of these markets, 186 market yards have already been developed at a cost of Rs.22 crores and the works at 255 market centres are in progress.

The Honourable Members are aware that a Co-operative Rice Millers Federation "RICEFED" has been organized to ensure payment of remunerative price to the farmers and to revitalize the Co-operative Rice Mills. The Marketing Federation has also been given necessary support to ensure remunerative price to the farmers growing cotton and tobacco.


Horticulture along with Sericulture and overall development of dry land farming techniques constitutes an important element of the strategy to assist the farmers dependent on rainfall. With this objective in view, substantial step up in the Horticulture sector was made in the year 1985-86. The thrust is carried forward by increasing the allotment for Horticulture from the current year’s level of Rs.90 lakhs to Rs.1.50 crores in the year 1986-87 and the allotment for Sericulture from Rs.2.50 crores to Rs.4.00 crores.


A massive programme of provision of Veterinary facilities in all Mandal headquarters and strengthening Veterinary Health facilities in the districts was taken up in 1985-86. Further, special programme for cattle development, sheet and goat development as well as rabbit breeding were initiated in the current year. It is proposed to consolidate and continue these programmes at a cost of Rs.3.34 crores. Infrastructure for Indo-Swiss Project at Visakhapatnam and strengthening of Frozen-Semen Organization are also contemplated in 1986-87. Overall allocation for 1986-87 for this sector would be Rs.3.70 crores.


The poultry industry has expanded to an extent that Andhra Pradesh is now considered a foremost State in this activity. The Andhra Pradesh Meat and Poultry Development Corporation is considering taking up export of quality eggs to Middle-East countries taking advantage of the establishment of International Airport facilities at Hyderabad. An amount of Rs.15 lakhs is proposed towards share capital of this Corporation and Rs.5 lakhs towards infrastructural facilities in the year 1986-87.


The Honourable Members are aware that a scheme called "Telugu Balala Ksheera Samkshema Pathakam" has been launched in the current year whereby children dwelling in the slums are being supplied with milk at subsidized rates in twin cities of Hyderabad and Secunderabad. In addition, the schemes for expansion of Dairy units, participation of women in the village co-operatives for dairy with possible assistance from Netherlands, provision of technical inputs in selected districts, strengthening of milk distribution system are proposed to be continued in 1986-87 with a total outlay of Rs.1.70 crores.


The programme for Fisheries sector includes the establishment of 3 National Fish Seed Farms for production of fish seed and an equal number of Fish Farmers Development Agencies apart from new scheme of intensive fish culture. The development of Reservoir fisheries will continue. Apart from these schemes, in the inland sector it is proposed to develop fisheries and prawn hatcheries in brackish water areas. In the marine sector programmes of harbours and development of fishing harbours, village access roads would continue. Including Rs.30 lakhs towards share capital contribution for Andhra Pradesh Fisheries Corporation and Rs.10 lakhs towards the assistance to Fishermen Co-operative Societies the total allotment to the Fisheries sector would be Rs.8.00 crores for 1986-87.


In 1986-87, it is proposed to continue all the schemes of three plantation both for protection and productive purposes including Centrally Sponsored Rural Fuelwood Plantation Scheme and Centrally Sponsored Project Tiger Scheme. The Canadian Aided Social Forestry Project is also proposed to be continued at an accelerated pace with an investment of Rs.8.00 crores during 1986-87.


In the area of Rural Development, the provision for 1986-87 covers the outlays for joint efforts between Union and State Governments for implementing schemes like IRDP(Integrated Rural Development Programme), DPAP (Drought Prone Areas Programme),NREP (National Rural Employment Programme), assistance to small and marginal farmers for increasing agricultural production, etc. The outlay for this purpose towards the State’s share would be Rs.52.45 crores. In addition to the Government of India’s assistance to implement the programme of RLEGP the State Plan outlay provides for the excess non-wage component under this programme to the tune of Rs.2.76 crores in 1986-87.


This is a very important programme launched by this Government from November, 1985. This programme aims at taking up a large number of various types of works which would satisfy the felt needs of the people for the development of the rural areas. It intends mobilization of voluntary and free labour for the execution of such works by the people without the medium of any intermediary. The works proposed to be taken up include construction and maintenance of irrigation and drainage works such as canals, distributaries and levelling and improvement of public parks, school play grounds, laying village roads, Samithi roads including their upgradation and maintenance, afforestation programmes. Construction of buildings such as primary health centres, primary school buildings etc.,

Already 30,651 works costing Rs.124.91 crores as approved by the District Planning Boards have been cleared by the Government for implementation. In this scheme, 50 percent of the value of the work done irrespective of the cost of the material and labour is proposed to be met by the Government.

For this programme a sum of Rs.11.00 crores was released during the year 1985-86 and it is proposed to step up the programme during the year 1986-87 and an allocation of Rs.60.00 crores has been made for this programme.


In the field of Irrigation, special emphasis is continuing to be laid on projects that benefit drought prone areas, besides expediting the completion of ongoing irrigation projects so as to ensure early accrual of planned irrigation benefits. The allocation proposed for various major and medium irrigation projects and also the minor irrigation sector duly reflect this concern.

During the year 1985-86, an outlay of Rs.230.57 crores was provided for major and medium irrigation projects with a target to create an additional irrigation potential of 59,250 hectares. During the year 1986-87, the outlay is proposed to be stepped up to RS.282.93 crores with a target to create an additional irrigation potential of 81,770 hectares. In addition, Rs.33.70 crores have been proposed for minor irrigation including provisions for Andhra Pradesh State Irrigation Development Corporation and Ground Water Department for the year 1986-87, besides providing Rs.5.00 for Drainage and Flood Control Schemes.

As part of an overall strategy for early completion of irrigation projects, several projects have been posed for external assistance. Both Srisailam Right Branch Canal and Sriramsagar Project have been included in the Second Andhra Pradesh Irrigation Project, which has been posed for World Bank Assistance. Negotiations have been satisfactorily completed with the World Bank Officials at Washington in January, 1986 and the World Bank Team finally agreed to finance 60% of the project costs, which works out to 271 million U.S. Dollars. European Economic Community assistance has already been secured for implementation of minor irrigation schemes in drought-prone and tribal areas to an extent nearly Rs.30.00 crores over a four-year period. Proposals have been formulated to secure assistance from Netherlands for expeditiously completing several ongoing medium irrigation projects.

Government are anxious to enforce appropriate water management policy to ensure equitable irrigation benefits for the entire area of all the project commands. Proper maintenance of canals and drains is essential to the successful percolation of the benefits. Mere budgetary provision would not bring about the required qualitative change. It is considered imperative to enlist people’s participation on a larger scale in carrying out the maintenance and repairs to irrigation works and drains while simultaneously reducing the role of contractors and middlemen. Accordingly, the Government have introduced "Shrama Shakti" and "Telugu Grameena Kranti Patham" Programmes to bring about a qualitative improvement in the execution of works and ensure enthusiastic involvement of people with projects that benefit them.

The outlay for Command Area Development in 1986-87 would be Rs.10.00 crores to continue the activities. A scheme of National Water Management Project at a total cost of Rs.40.00 crores has also been initiated in the talks with the World Bank for implementation in VII Plan from 1986-87 covering about a dozen projects for optimum utilization of irrigation waters, improvement of delivery system etc.


The outlay proposed for power during 1986-87 is Rs.180.25 crores. Of this, Rs.10.00 crores are towards the expenditure relating to the Srisailam dam and Rs.25.00 lakhs towards non-conventional sources of energy. Thus the bulk of the allocation viz., Rs.170 crores is earmarked for the Plan of Andhra Pradesh State Electricity Board. However, it is the intention of the Government to enable and encourage the Electricity Board to implement a plan of over Rs.200.00 crores through a process of mobilization of additional resources by the Electricity Board.

Of this, about Rs.78.00 crores is proposed towards generation and about Rs.69.00 crores for transmission, distribution and systems improvement. The Plan for rural electrification is expected to be over Rs.22.00 crores. In fact the Electricity Board is being encouraged to take up the programme of rural electrification of even a higher order by trying to overcome some of the physical bottlenecks that the Board is facing.

The Hon’ble Members may be interested to know that there has been a steep increase in the plan outlay of the Electricity Board in the recent past which has risen from the level of Rs.103.00 crores in 1983-84 to Rs.170.00 crores in the current year. The number of pumpsets energized has also risen from the level of 48,000 in 1983-84 to an anticipated level of 78,000 to 84,000 in 1986-87.


The allocation for this sector for the year 1986-87 is Rs.54.76 crores as against Rs.52.20 crores in the current year. This comprises of Rs.19.26 crores for Village and Small Industries, Rs.29.00 crores for Large and Medium Industries and Rs.6.50 crores for Mining.

In the area of Village and Small Industries, in addition to pursuing most of the ongoing schemes, new schemes like setting up of rural service guides, field station for salt with model farm together with research and development facilities are proposed in the year 1986-87.

In the area of Large and Medium Industries, the outlay for 1986-87 is Rs.29.00 crores. Of this, Rs.4.50 crores is proposed to the Commissioner of Industries for implementation of the State Incentive Scheme for industrial growth keeping in view the requirement of the identified backward districts of Srikakulam, Anantapur and Adilabad as well as the 20 growth centres spread over 7 districts for which State incentives have been announced recently. As part of the strategy of promoting the catalystic role if the State Government in industrial development, the outlay for Andhra Pradesh State Financial Corporation is retained at Rs.4.64 crores and the outlay for Andhra Pradesh Industrial Development Corporation including Andhra Pradesh Electronics Development Corporation at Rs.7.00 crores.


Under Handlooms and Textiles, a training school called "Telugu Chenetha Parishramika Sikshana Kendram" has beenestablished and started functioning. This Kendram is intended to impart training and for providing research-cum-service facilities and designs, etc., to the weavers. In the year 1986-87, the other initiatives taken in 1985-86 encompassing strengthening of co-operatives construction of workshed-cum-houses and distribution of dhoties and sarees at subsidized rates, etc., will be continued with a total outlay of Rs.12.10 crores.


This Corporation which was constituted to improve the economic conditions of the minorities has prepared an action plan for the year 1985-86 covering all the 23 districts of Andhra Pradesh according to which the assistance will be rendered based on the population of minorities in each district. In 1986-87, an outlay of Rs.80.00 lakhs is provided as equity for this Corporation.


The Public Enterprises Management Board was constituted in 1982 under the Chairmanship of Chief Secretary to Government with officials and professionals as Members to review the performance of State Level Public Enterprises. The performance of the Public Enterprises is being reviewed quarterly against the target fixed.

A committee constituted under the Chairmanship of Principal Secretary to Government, Finance and Planning Department has reviewed and given approval for the annual action plan fixing the targets for the year 1985-86. The performance of these enterprises is being judged against these targets. A scheme is also considered to take up systematic management appraisal and management performance appraisal of the public enterprises through management audit. It is also proposed to take a group of financial experts to review their financial performance and give them necessary guidance.


Considering the importance of roads and the relative neglect in the past of this sector, the allocation for Chief Engineer (Roads) has been increased to a level of Rs.18.00 crores from a level of Rs.13.00 crores for 1985-86. The programme for Andhra Pradesh State Road Transport Corporation which has budgeted at a level of Rs.40.52 crores in 1985-86 has been revised to Rs.55.90 crores and in 1986-87 the outlay would be Rs.56.00 crores.


The outlay for General Education for 1986-87 has been enhanced to Rs.61.52 crores as against the revised estimate of Rs.49.55 crores in the year 1985-86. Apart from continuing the emphasis on Elementary Education, Vocationalisation, Adult Education, Audio-Visual Education, Award of prize money for meritorious students, the new thrust in the Education sector in 1986-87 would be in the area of introducing computer education in planned manner at appropriate levels.


During the year 1985-86, with a view to benefit more number of girl students, four Government Polytechnics exclusively for women have been started at Hindupur, Palamaneru, Cuddapah and Nizamabad. In addition, 2 boy’s polytechnics have also been started, one at Hyderabad and the other at Narsipatnam. In the year 1986-87, the plan envisages an outlay of Rs.3.76 crores for the on-going schemes. In addition a provision of Rs.0.24 crore is proposed for new schemes, such as Institute of Ceramic Technology at Gudur, introduction of Diploma Courses in Electronics and Communications, Engineering, etc.


The Plan outlay for Medical and Health Services for the year 1986-87 has been stepped up to Rs.29.42 crores fromRs.23.76 crores during 1985-86. The proposal for 1986-87 includes continuance of the programme of health care for school children, establishment and maintenance of the primary health centres, sub-centres and dispensaries in Indian and Homeopathic medicines to be integrated with proposed Mandal set-up. The allocation of Rs.1.77 crores is indicated for the proposed Institute of Medical Sciences. The Government have decided in principle to establish a University of Health Sciences for which a grant-in-aid of Rs.2.00 crores is indicated in the plan for 1986-87.


In view of the long neglect of the city in the past and serious traffic congestins, an accelerated programme of road widening, construction of fly-overs and road-over bridges, developing parks and play grounds, environmental improvement of slum areas etc., were taken up in 1985-86 itself by enhancing the provision to Municipal Corporation of Hyderabad from Rs.5.15 crores to Rs.15.15 crores. This tempo is proposed to be maintained in 1986-87 also.

Remodeling and implementation of comprehensive drainage scheme for Hyderabad city at a cost of Rs.75.00 crores has been taken up. As part of the scheme, Stage-I costing Rs.25.00 crores has been sanctioned.

For the development of old Hyderabad city Rs.4.00 crores were released during 1985-86 for taking up various developmental works. To keep up the tempo of developmental works, the provision for Quli Qutub Shah Urban Developed Authority has been stepped up to Rs.6.00 crores for the year 1986-87.


The failure of monsoon for the last two years has crippled water supply for the twin cities. While the Government have taken immediate steps for regulating the water distribution, an amount of Rs.3.00 crores has been sanctioned for taking up many emergency measures including drilling of bore wells and supply of water by lorries.

To speed up the programme of tapping the water stored in Singur reservoir, the provision of Metro Water Works has been substantially stepped up from Rs.12.00 crores in 1985-86 to that of Rs.20.00 crores in 1986-87.


Government have provided Rs.1.45 crores in the year 1985-86 and Rs.2.00 crores in the year 1986-87 for construction of municipal school buildings in municipalities. In order to improve the water supply facilities and sanitation in the municipalities a provision of Rs.14.00 crores each has been made in the year 1985-86 and in the year 1986-87.

The low cost sanitation is an important programme taken up by the State Government for liberation of down trodden section of the society i.e., scavengers. Under this scheme 28 municipal towns were taken up during 1984-85 and another 28 municipal town taken up during 1985-86. This programme will be continued in 1986-87 with an allocation of Rs.5.65 crores.


Government have been making substantial investment in the share capital of the Scheduled Castes Cooperative Finance Corporation which has been assigned a crucial role in the implementation of economic development programmes for the Scheduled Castes. The budget provision during 1986-87 for the share capital contribution to the Scheduled Caste Co-operative Finance Corporation is Rs.7.65 crores.

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 Scheduled Tribes. A comprehensive scheme of relief and rehabilitation of the victims of the atrocities has also been drawn up and it is being implemented.

In order to provide quality education for the school-going children of the Scheduled Castes Community, Government have set up two residential schools in each district one for the girls and another for the boys. While the schools are functioning in all the districts, the construction of the buildings and other infrastructure are still in progress. For the year 1986-87 an amount of Rs.10.54 crores has been provided in the budget for maintenance of residential schools and their buildings.

There are 2,203 social welfare hostels for Scheduled Castes for pre-matric students with a total strength of about 2.20 lakh boarders. During the year 1985-86, 208 additional hostels have been sanctioned under rationalisation of hostels to make them administratively viable besides opening of 66 new Government hostels. It is proposed to open 46 new hostels with a strength of 100 boarders in each during 1986-87. In order to provide suitable buildings for the hostels, an amount of Rs.5.00 crores has been provided for the year 1985-86. A sum of Rs.5.50 crores is proposed for 1986-87 for the construction of hostel buildings. 1,005 hostel buildings have been sanctioned against which construction of 575 buildings have been completed and the remaining are at various stages of progress.

For the year 1986-87, an amount of Rs.12.50 crores is proposed for land acquisition under plan budget to provide house-sites to about 1,25,000 families.


The Weaker Sections Housing Programme is being implemented through the Andhra Pradesh State Housing Corporation on a massive scale under sites and service programme, rural semi-permanent, rural permanent and urban permanent housing schemes with subsidy from Government and loan assistance from various financial agencies like HUDCO, GIC, LIC and Commercial Banks. During 7th Plan, 7 lakh houses have been proposed to be constructed at the rate of 1.40 lakh houses per year with an outlay of RS.260.00 crores. As in 1985-86, in 1986-87 also it is proposed to construct 1.40 lakh houses with an outlay of Rs.48.00 crores from Government.


The Police Housing Corporation is constructing houses with effect from 1971 for providing accommodation to the police personnel. As compared to Rs.4.35 crores in 1985-86 a provision of Rs.4.50 crores is made in the year 1986-87.


Honourable Members are aware that a scheme of pension to landless agricultural workers above 60 years of age was introduced from 1st November, 1984. I am happy to mention that the scheme has been implemented quickly and extensively within a very short time and we have made efforts to cover about 5,56,000 agricultural workers in 1985-86. 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 plan for the year 1986-87.

Apart from the pension for the landless agricultural workers, the existing old age pension scheme is being implemented. For old age pensions a provision of Rs.7.54 crores has been made in the Budget for 1986-87. The pension scheme for widows is under implementation with a provision of Rs.2.94 crores.


For the first time, the Government have introduced a scheme of sanction of scholarships to mentally retarded children who are studying in the specialized schools and also introduced a scheme of sanction of incentive awards up to Rs.3,000 to either of the spouse to encourage the marriages between disabled and normal persons.

First of its kind in the State, a Braille Typewriting Training Center was started on 4th January, 1986 by the Corporation where the needy visually handicapped persons will be imparted training in the Braille Script. To implement all the above schemes an amount of Rs.2.00 crores is provided in the Plan Budget.


The provision for welfare of Scheduled Tribes is increased to Rs.16.23 crores in 1986-87 from a level of Rs.14.00 crores in 1985-86. The State Government are fully committed to continue the approach of Sub-Plan for Tribal areas by utilizing Plan allocations in all other sectors and fully exploiting the resources available from the Government of India for this purpose.


The outlay for welfare of Backward Classes in 1986-87 has been enhanced to Rs.20.98 crores. During this year, it is proposed to open 120 new hostels apart from maintaining 1,088 hostels including Ashram School Hostels. Provision has been made for construction of hostel buildings. For economic support schemes, an amount of Rs.5.50 crores is proposed in 1986-87 as investment in Andhra Pradesh Backward Classes Co-operative Finance Corporation,


The allocation for Women and Child Welfare in 1986-87 has been stepped up to Rs.6.50 crores from a level of Rs.5.03 crores in 1985-86. Apart from consolidating and continuing the schemes that have been introduced in the current year, it is proposed to open 30mobile creches and 5 child homes. The programme also includes a provision of Rs.1.00 crore for construction of buildings to the Anganwadi Centres exclusively in tribal ICDS Project areas. The programme of training-cum-production centres to be established in each district will be continued in 1986-87 also apart from Rs.5.00 lakhs provided towards share capital to A.P. Women’s Co-operative Finance Corporation.


The programme for effective enforcement of minimum wages for agricultural labour had been initiated in 1985-86. This is proposed to be continued in 1986-87 with an outlay of Rs.27 lakhs. In addition, Government of Andhra Pradesh are participating in a programme for comprehensive family welfare education for organized industrial labour in collaboration with the United Nations.


I am happy to inform the House that we are continuing the supply of rice to the poor people at Rs.2 per Kg. In spite of increase in the issue price by the Food Corporation of India by Rs.140 per ton with effect form February, 1986. Towards subsidy for supply of rice at Rs.2 per Kg the State Government have provided a sum of Rs.160.00 crores for the year 1985-86 and Rs.176.00 crores for the year 1986-87. Government are supplying through fair price shops not only rice but also wheat, wheat products, sugar, edible oil, dal, jowar and kerosene under public distribution system.


Hon’ble Members are aware that almost all parts of the State were affected by sever drought conditions in 1985-86. The Government of India communicated a ceiling of Rs.30.80 crores for expenditure on providing drinking water, etc., and for incurring expenditure on employment generation schemes. As the drought position continued, a further ceiling of Rs.32.29 crores has been communicated for expenditure on various drought relief schemes. Against the total ceiling of Rs.63.09 crores for relief schemes as well as for employment generation schemes due to drought, the State Government have sanctioned so far a sum of RS.69.66 crores.


The Hon’ble Members are aware of the various measures taken by the State Government i.e., strengthening of the Anti-Corruption Bureau, Establishment of Lokayuktha and Upalokayuktha and creation of Vigilance and Enforcement Department for providing a clean administration as promised by our Government to the people by weeding out the corrupt people at all levels. A provision of Rs.2.07 crores has been made in the budget for 1986-87 for all these agencies.


As the employees are the instruments for the efficient implementation of the programmes and policies of the Government, the Government are giving the utmost consideration needed for the welfare of the employees. Government have taken a decision to sanction ad hoc payment to the employees during 1986-87 equal to 15 days emoluments of pay and dearness allowance. Ad hoc payment is admissible to the employees drawing emoluments up to Rs.2,500 per month subject to the condition that the maximum amount admissible shall be equal to the amount admissible to those drawing emoluments up to Rs.1,600 per month. A provision of Rs.33.33 crores has been made in the budget for 1986-87 for expenditure on ad hoc payment to the employees.


The Planning Commission approved for 1985-86 a Plan of Rs.810.00 crores excluding Tamil Nadu’s contribution for Telugu Ganga Project. The Budget as approved by this House in September, 1985 contained an Annual Plan outlay of Rs.1,044.00 crores. According to current assessment the revised estimates are also placed at Rs.1,044.00 crores with some marginal changes in the sectoral outlays.

ACCOUNTS 1984-85

Against a revenue deficit of Rs.133.14 crores estimated for the year 1984-85, the actuals of the year revealed a deficit of Rs.169.04 crores. The year closed with a minus balance of Rs.44.66 crores taking into account the credit for ways and means advance and overdraft of Rs.189.23 crores from the Reserve Bank of India. After adjusting the ways and means advance and overdraft the year 1984-85 actually closed with a minus balance of Rs.233.89 crores as against estimated closing balance of Rs.1.03 crores.


The Revised Estimate 1985-86 revealed a revenue deficit of Rs.79.26 crores against the deficit of Rs.65.50 crores originally estimated. The year is expected to close with a minus balance of Rs.28.81 crores taking into account the medium term loan assistance as against the original estimated closing deficit balance of Rs.119.31 crores.


The revenue deficit estimated for the year 1986-87 is Rs.15.74 crores as against Rs.79.26 crores as per the Revised Estimate 1985-86. The year 1986-87 is estimated to close with a minus balance of Rs.166.52 crores.


The Budget Estimate 1986-87 reveal a closing deficit of Rs.166.52 crores In view of the pronouncement of the Union Finance Minister that there is a buoyancy in the Central taxes we expect that the devolution to State finances on account of such buoyancy will be more than what has been assumed in the estimates as per the current indications given by the Government of India. Further, the Central Sales Tax is still stagnant at 4 per cent for over a decade and a number of States have joined us in seeking an upward revision of this tax. While the magnitudes of these resources to our State cannot be assessed at this stage, we have reason to expect that these and other efforts by the State Government itself will result in a situation where we would not end with a deficit.

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