Previous Budget Speeches




2010 - 11


ON 20th Feb 2010.

1. I rise to present the Budget of the Government of Andhra Pradesh for the year 2010-11.

It is my privilege to present the budget to this august house for the 16th time, although, it is my second in the present Assembly and first as Chief Minister. As Hon’ble Members are kindly aware that the State has witnessed many unexpected events after we returned to power in May 2009. The State which had been receiving copious rainfall for the last four years, experienced severe drought in the year 2009-10. Normal life was severely affected with drought conditions prevailing practically in the entire State. Food grain production which had touched a record of 204 lakh tonnes in 2008-09, is likely to be 40 lakh tonnes lower in 2009-10 due to the severe drought. The Government initiated drought relief measures in a big way and are planning long term measures to mitigate the plight of farmers. At this juncture a tragedy of enormous magnitude befell on the State. A towering leader who had led the State to an all round development in the last five years and who had endeared himself to the masses, Dr. Y.S. Rajasekhara Reddy, died under the most tragic circumstances in a helicopter crash, plunging the entire State into grief. Exactly a month later, unprecedented floods inundated 5 districts of the State causing loss of life and livestock in addition to property loss to a tune of a staggering Rs.12,800 crores. However, as this House is kindly aware that the Government administrative machinery and Non Government Organizations on the one hand and the people’s representatives on the other, made collective efforts to alleviate the misery of people and successfully contained the damage caused by floods.

3. In the passing away of our youthful and dynamic Chief Minister, I have personally lost a good friend and a great leader; the people of the State have lost their greatest benefactor and the country has lost one of the greatest champions of inclusive growth. Never in the history of this country, in any five years period in the post-independence era, has any State ventured to implement so many developmental and welfare programmes as was done in our State during the last five years under the leadership of Dr. Y.S. Rajasekhara Reddy. It is unfortunate that he is physically not with us today, though his ideals will continue to inspire us. The best homage we can pay to him is to walk down the path shown by him and make whole hearted efforts to fulfill all his dreams for the people of the State.

4. The global economic slow down has impacted the economies of all the states in the Country much more than what we initially anticipated. Of late, the GDP growth rate has been showing some signs of recovery which would surely be reflected in the growth rates of revenues in near future. RBI has revised the GDP growth rate as 7.17% as against earlier estimates of 6.1%. Andhra Pradesh would have done extremely well, given our excellent track record, inbuilt strength for the State economy and an excellent administrative machinery, but for our trials and tribulations in the recent past. However, it is my firm belief that if we sink our differences and join hands to bring back the State on the right track of economic growth, we shall soon recover our momentum and shine once more as a model for others to emulate.

5. However, as I have said earlier also, economic growth alone would not solve all our problems. The prime focus of our Government is achieving economic growth with equity. For faster economic growth we are proposing to keep the capital expenditure high. We are hopeful that the Central Government will declare atleast two of our large irrigation projects as National projects. Further, we have been actively following up the implementation of a large number of power projects both in the private and public sector, the Sea-port and Airport projects under PPP mode and the three major projects with the world Bank assistance viz., the AP State Road Sector Project at a cost of Rs.3,165 crores, AP Rural Water Supply and Sanitation Project at a cost of Rs.864 crores and the AP Municipal Development Project at a cost of Rs.1,670 crores. We are shortly going to come up with a new industrial policy designed to attract large industrial investments. We have a long coast line of 974 kilo metres backed by a very well developed hinter land. We have a very large and diverse manufacturing base with leadership in many sectors. We have a very well diversified higher education institutional base and the presence of many prestigious civil and defence research laboratories. We are ideally positioned to emerge as the best destination for industrial investments. But the bottom line is we should maintain peace and harmony in the State. This is the least that any investor looks for. I sincerely request everyone here to do their best in ensuring peace and tranquility in the State which would ensure rapid realization of our growth potential.

6. Along with economic growth, as per the policies of our Government and ideals of our late leader we have decided to continue the focus on welfare and development activities because the growing wealth of the State has be equitably distributed amongst all sections of the society. The NREG programme, the subsidized rice, oil and pulses programme of the Government, scholarships on saturation basis, welfare pensions, Arogyasri and various welfare measures have been providing the much needed succor to the needy in this crisis period.

7. The three fiscal stimulus packages implemented by Central Government as a quick response to the economic slowdown have gone a long way in reversing the trend. At the meeting of the State Finance Ministers’ held in New Delhi on 13th January,2010, our Government submitted a Memorandum requesting the Central Government to continue the fiscal stimulus packages till the economy recovers fully and gets back to 9% growth level. We have also requested them to enhance the budget allocations on Centrally Sponsored Schemes like AIBP, JNNURM, NREGP, BRGF, RKVY and Bharat Nirman Programme as they will help in giving a push to the economy. Hon’ble Members will be happy to note that AP has been enjoying a lion’s share of most of the Centrally Sponsored Schemes. Hon’ble members will also be happy to note that the Central Government have reconfirmed that the work on the Rs.6,000 crores Mannavaram Project will be started shortly.

8. I would like to take this opportunity to personally thank the UPA Chairperson, Smt. Sonia Gandhi, Prime Minister Dr. Manmohan Singh and the Union Finance Minister Sri. Pranab Mukherjee for their continued support to the State. I am particularly thankful to both the Prime Minister and the UPA Chairperson for their timely visit to the flood-affected districts in the State and for announcing the adhoc relief

9. I am aware that, over the years, the role and responsibilities of the Legislators has been expanding. There has been an increasing expectation from the people, and the demands on them are growing. In the light of this, and personal requests from several Hon’ble members, I have decided to not only revive the Constituency Development Programme but also to enhance the allocation to rupees one crore per legislator. In deference to the aspirations of our colleagues in the Legislative Council, I have decided to extend this programme to Members of Legislative Council also.

10. I am committed to giving clean and transparent administration. I am among those who firmly believe that poverty anywhere is a blot on all of us. We will do well to remember what the Mahatma has said “Strength does not come from physical capacity. It comes from an indomitable will”. I need your support, understanding and cooperation at this most critical juncture to serve the people of our State.


11. Our State continues to be one of the leading agrarian States in the country with a sizeable presence in the crop sector, horticulture, sericulture, livestock and fisheries sectors. We continue to be the third largest producer of foodgrains in the country with a second position in respect of rice production. Our agricultural GSDP was Rs.91,000 crores for the year 2008-09 and this constitutes 24.5% of State’s GSDP and about 11% of Country’s agricultural GDP. The State had achieved an average annual growth rate of 8.9% in quantitative terms for food grains production. Agricultural credit at affordable interest rate is an important input in the development of agriculture. I am happy to inform the Hon’ble members that crop loans in A.P have doubled in the four years period 2004-2008 and have reached a level of Rs.16,469 crores in 2008-09. In the current fiscal, a sum of Rs.18,300 crores was distributed as crop loans till 31st December 2009 and it is likely go up to Rs.20,000 crores by 31st March, 2010. The total agriculture loans in the State outstanding as on 31st December, 2009 are Rs.62,005 crores which approximately accounts for 17.5% of total agricultural loans in the country and in absolute terms this is the highest for any State in the country. Members will also be happy to know that the rural credit deposit ratio of the commercial banks in the A.P continues to be highest in the country.

12. Availability of quality seed is very important for improving the farm productivity. In recognition of this, we are not only effectively implementing the seed village programme but have also supplied 22.50 lakh quintals of quality seed to farmers at 50% subsidy amounting to Rs.320 crores during the current fiscal year. This scheme is sought to be strengthened during the year 2010-11 with a subsidy of Rs.375 crores. The other programmes viz., the Rythu Chaitanya Yatralu, Polam Badi and Rythu Sadassulu are being actively pursued. The Integrated Pest Management (IPM) programmes in Polambadi have contributed in scaling down the consumption of pesticides to 1381 MTs during 2008-09 which was as high as 4,000 to 5,000 MTs earlier.

Honourable members are kindly aware that during the last 5 years, our State has implemented a large number of welfare programmes in an unprecedented manner, many of them reaching almost 80% of the State’s population. Though, our friends in opposition made several attractive promises, true to our tradition, we have made two important poll promises, namely, the extension of free power supply time from 7 hours to 9 hours and enhancement of rice entitlement from 4 kgs to 6 kgs per month per person under the two rupees a kg rice scheme. These are in the process of being implemented.

13. Crop Insurance scheme is operational in 22 districts with village as the unit. This has been introduced for higher accuracy in assessment of losses. As regards compensation for Kharif 2008, an amount of Rs.801.20 crores has been released and paid to the affected farmers. Besides implementing the National Agriculture Insurance Scheme (NAIS) for the first time in the State, the Government has also implemented a new scheme namely “Weather Based Crop Insurance” during Kharif 2009 season for Red Chilly Crop in Guntur District on a pilot basis and it is being implemented successfully. The Government is implementing the Rashtriya Krishi Vikas Yojana (RKVY) in the State with 100% Central assistance. Under this scheme, seed management, extension services, farm mechanization, induction of milch animals etc., are being implemented.


14. About 92.54 lakh families are engaged in livestock and livestock related activities in the state. 23.63 lakh families are directly dependent on livestock for their livelihood. Andhra Pradesh with annual milk production of 95.69 lakh metric tonnes stands second in the country surpassing Rajasthan and Punjab. Andhra Pradesh continues to be at first position in egg and broiler production. The Government has been actively promoting live stock activity in the State through the programmes like Pasukranti and Jeevakranti for insulating the income of the farmers against the vagaries of drought.

15. The Government of India have sanctioned Special Livestock and Fisheries Package under Animal Husbandry Sector and Rehabilitation of farmers in the Prime Minister’s package for 16 distressed districts of Andhra Pradesh, with a view to provide supplementary avenues of income to the farmers. The package has been initially sanctioned for 3 years from 2006-07 with a financial outlay of Rs.247.07 crores, and subsequently extended till September 2011. As part of this programme, so far about 44,000 milch animals have been distributed to farmers in the aforesaid districts. An amount of Rs.3028 crores is provided for Agriculture and allied Sectors in 2010-11 Budget Estimates.


The Government has taken up Major, Medium and Minor Irrigation projects in a big way under the “Jalayagnam” programme to utilize every drop of water in the State for agriculture and drinking water purposes. Where it is not possible to command the area by gravity, lift irrigation schemes are being taken up to benefit the backward and drought prone areas. The State Government aims at completing 86 Major and Medium Irrigation Projects besides taking up programmes for raising Flood Banks, Modernization of Delta and Lift Irrigation Schemes with an ultimate objective of creating new Irrigation Potential of 98.41 lakh acres, besides stabilization of 22.26 lakh acres. During 2004-05 to 2008-09, as part of “Jalayagnam” programme an additional irrigation potential of 19.26 lakh acres was created in addition to providing stabilization of 3.09 lakh acres.

17. 33 Major and Medium Irrigation projects were included under the Accelerated Irrigation Benefit Programme (AIBP) since 1996-97 in Andhra Pradesh. Out of these projects, 22 projects comprising 12 Major and 10 Medium were included after 2005-06. Central Assistance is fully received for 11 projects and these projects are treated as completed. Out of the 22 ongoing projects, 15 projects are covered under the Prime Minister’s Relief Package and the balance 7 projects are covered under normal AIBP. Efforts are being made for inclusion of 8 new projects under AIBP i.e. 6 projects under PMRP and 2 projects under Normal AIBP.18. Minor Irrigation is considered as a major instrument for development of the backward and tribal areas of the State. Works are in progress to create new ayacut of 7.47 lakh acres and modernization of 9.75 lakh acres with an outlay of Rs.3,423 crores. Government of India has approved 90 Minor Irrigation and Lift Irrigation schemes at a cost of Rs.434.00 crores to create new ayacut of 90,000 acres for the first time under AIBP. A Pilot project for restoration and rehabilitation of Minor irrigation tanks was implemented with the assistance of Government of India in two districts and it has been scaled up to 3000 tanks with 25% grant from Government of India and 75% loan from World Bank. In addition to the above, 3000 Minor irrigation tanks are proposed to be restored with the financial assistance of Government of India under a new Renewal, Repair and Restoration Programme.

19. In order to meet the requirement of power for running the lift irrigation schemes, Hydroelectric Schemes at Polavaram, Dummugudem, Kanthanapally and Pulichintala are being taken up with an installed capacity of 1850 MW Power, apart from other power projects. An allocation of Rs.15,011 crores is proposed in the budget 2010-11 for Irrigation sector.


20. We sincerely believe that provision of food security to the common man is our duty. Presently 2.04 crore BPL families are being supplied essential commodities at subsidized rates through the Public Distribution System. Rice, Wheat, Redgram dal, sugar, palmolein oil and kerosene are being supplied to the white card holders, every month. I propose to allocate an amount of Rs.3000 crores towards Food Subsidy in the next year’s budget.

21. With an aim to deliver the benefits of various welfare schemes to the target groups effectively and to plug the loopholes, the Government has taken up integrated field survey for de-duplication of ration cards in a scientific and transparent manner. In the process, utmost care is taken to ensure that no hardship is caused to the genuine card holders. The list of ration card holders who do not exist or are ineligible are being further verified in grama sabhas to ensure that no eligible beneficiary is removed from the list.


22. Employment is another major focus area of our Government especially in the rural areas. The slowdown in the economy would have really hit the common man, if it were not for our effective public distribution system and our State’s exemplary performance in the National Rural Employment Guarantee Programme (NREGP).

23. Andhra Pradesh has emerged as a role model in the implementation of National Rural Employment Guarantee Programme (NREGP). The social audit programme being implemented in the State as part of National Rural Employment Guarantee Programme (NREGP) has received wide acclaim. Apart from providing wages to the workers, National Rural Employment Guarantee Programme (NREGP) has contributed in creating valuable productive infrastructure in the rural areas. Under this scheme an estimated 1.15 crore job cards have been issued in all the districts. So far, an expenditure of Rs.8182.30 crores has been incurred under this scheme. Average wage paid per person per day is Rs.85.54 and equal wages are being paid to men and women. The proposed outlay under State share for this scheme in the 2010-11 budget is Rs.300 crores.


24. One of the extraordinary achievements of our Government has been its Social Security pensions programme to the old aged, widows, disabled, etc., on a saturation basis. This is the biggest programme in the country. So far, 71.52 lakh persons are being benefited under this scheme. This includes 44.33 lakh old aged persons, 1.50 lakh weavers, 17.44 lakh widows and 8.25 lakh disabled persons. Our Government has decided to extend the pension scheme to the AIDS patients. An amount of Rs.1932 crores has been proposed for this programme in 2010-11 budget.


25. Indiramma Housing Programme is a flagship programme of the State Government aimed at providing pucca houses for rural and urban poor and to make the State hut free. So far, out of a total of 64.69 lakh houses which are taken up, 28.09 lakh houses have been completed and the balance are at various stages of completion. All the taken up houses will be completed in a time bound manner. An amount of Rs.1800 crores is allocated for Housing Programme in 2010-11 Budget.


26. Our Government is giving top priority for empowerment of the poor by providing them easy access to credit from banks, through the Pavala Vaddi Scheme under Indira Kranthi Patham Programme (IKP). Under this scheme, so far an incentive of Rs.527.08 crores has been provided to 25.60 lakh SHGs. Bank lending to SHGs has rapidly increased from Rs.197.70 crores in 2001-02 to Rs.6,649.44 crores in 2008-09. We wish to make each SHG member a LAKSHADHIKARI by 2015-16. I propose to allocate Rs.200 crores towards interest subsidy for self help groups during the year 2010-11 budget.

27. With a view to providing income security to women in their old age, our Government has also introduced Dr. YSR Abhaya Hastham scheme which is a co-contributory pension cum Insurance Scheme for the SHG women who are above the age of 18 years living both in rural and urban areas. Under this scheme, the women members are expected to contribute a sum of Rs.365 per annum to the fund, with the State Government also contributing an equal amount. The members will be entitled to a minimum pension of Rs.500 per month upon completion of 60 years of age along with insurance coverage. So far, 41 lakh members have been enrolled and Rs.15 crores is distributed to 3 lakh pensioners every month. An amount of Rs.220 crores is proposed to be allocated for this scheme in 2010-11 budget.


28. We continue to accord top priority to the welfare sector, which is evidenced by the allocations made to these sectors. We are implementing programmes such as Welfare Hostels which benefit 2.50 lakh school going children, modern buildings for the Social Welfare Residential Schools, economic support schemes for the families living below poverty line etc., With a view to strengthening the physical infrastructure of Residential Schools, an amount of Rs.150 crores has been provided in the 2010-11 budget for construction/ renovation of buildings and other infrastructure. An amount of Rs.1909 crores has been provided for Social Welfare Department in 2010-11 Budget.

29. The Government is implementing post-matric scholarship programme on a saturation mode to provide scholarships and tuition fees to all eligible students of SC, ST, BC, EBC, Minorities and Disabled whose parental income is below Rs.1 lakh per annum. Allocation for scholarships and tuition fee for SCs is Rs.536 crores, for STs is Rs.193 crores, for BCs is Rs.1032 crores, for EBCs is Rs.300 crores, for Minorities is Rs.210 crores and for disabled is Rs.7 crores in 2010-11 budget.


30. Under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, 3,25,872 claims covering an extent of 19,41,688 acres of land have been received. So far 1,69,717 claims covering an extent of 14,18,826 acres have been approved. Government is in the process of formulating a “Tribal Empowerment Policy” for ensuring the overall development of tribals in the next five years.

31. A health insurance scheme called “Rajiv Giribala Raksha” has been taken up in collaboration with National Insurance Company with the objective to provide immediate access to quality health care to ST boarders studying in Ashram Schools, Hostels and Residential institutions. Under this scheme, each boarder is eligible to receive medical treatment in all network / empanelled hospitals upto Rs.5,000/- with a personal accident cover of Rs.25,000/-. An amount of Rs.902 crores is proposed for Tribal Welfare Department in 2010-11 Budget.


32. The Government have sanctioned 7 new BC study circles at Vizianagaram, Tirupati, Kadapa, Karimnagar, Khammam, Nizamabad and Adilabad during 2009-10 in addition to the 8 already existing, with a view to provide coaching facilities to the candidates belonging to the Backward Classes to improve their performance in the Civil Services and other competitive examinations like Group-I, I.E.S., Civil Judges, District Selection Committee, Bank Probationary Officers, Junior Lecturers, Sub Inspectors etc. An amount of Rs.1721 crores is allocated for B.C. Welfare Department in 2010-11 Budget


33. Welfare of the minorities has always been a priority for our Government. For providing coaching to the minority students for entrance to professional colleges, the Centre for Educational Development of Minorities is functioning under the aegis of Osmania University. A provision of Rs.237 crores has been made in Budget Estimates 2010-11 for Minorities Welfare Department.


34. Andhra Pradesh is the only State in the country to have developed and launched an activity based pre-school curriculum for 12 months to promote a holistic development of the children in the age group of 3-6 years. The curriculum is being implemented in 80,000 Anganwadi Centres in the State. Towards this end, a four days’ refresher training was organized for 84,137 Anganwadi workers, Anganwadi helpers and supervisors during 2009-10.

35. Our Government is committed to providing qualitative Supplementary Nutritious Food (SNP) to the children below the age of 6 years, and to pregnant women and lactating mothers. To bring down the under-nourishment levels among the children, the allocation for SNP is doubled to benefit 40.05 lakh children and 10.43 lakh women.

36. To implement the Prevention of Domestic Violence Act, 2005, 104 Protection Officers have been appointed with 77 shelter homes identified and 72 service providers registered. An amount of Rs.1846 crores is allocated for Women & Child Welfare Department in 2010-11 budget.


37. Our Government is working towards achieving total literacy in the next ten years period. As part of this commitment, many programmes are being taken up. Government is effectively implementing Mid Day Meal scheme up to tenth to motivate the students to attend the school regularly. Model Schools are being established to achieve qualitative change in primary education. Government is implementing Sarva Siksha Abhiyan (SSA) with the aim of providing useful and relevant elementary education for all children in the age group of 6-14 and to improve infrastructure facilities in primary schools with construction of school building, additional classrooms, etc.

38. A new scheme called Sakshar Bharat Mission 2012 is proposed to be implemented as a Centrally Sponsored Scheme. The main focus of this programme is to eradicate illiteracy among adult women and to achieve 80% literacy rate by decreasing gender gap in literacy to 10%. The districts with 50% and below female literacy rates are going to be covered in this programme.

39. To improve enrolment ratio for IX and X classes from 65% to 100% and to strengthen existing secondary schools, a new scheme called “Rashtriya Madhyamika Siksha Abhiyan” is proposed to be implemented from 2010-11 with central assistance of 75%. Our Government is providing computers to schools to meet the growing demand for manpower with computer skills. An outlay of Rs.9824 Crores is provided for School Education Department for the financial year 2010-11.

40. Our Government has been taking several steps in the direction of improving access to higher education while promoting equity and inclusiveness and placing utmost emphasis on the quality and relevance of subjects taught in the institutions of higher education. In the last five years, 18 new Universities have been set-up in the State. Government has also sanctioned 65 new degree colleges, 49 new polytechnics and 104 new Junior colleges during the last three years. These measures represent an unprecedented growth in the State in the field of higher education.

41. Academic programmes and faculty development programmes have been started in association with Industries i.e., Osmania University with GENPACT, Andhra University with HSBC Bank and Government Degree Colleges with Infosys. The Andhra Pradesh State Council for Higher Education has been conducting Career Awareness and Recruitment Drive (CARD) in association with NASSCOM and recruiting industries in the sectors of IT and IT enabled Services, insurance, banking, hospitality, tourism, retail sector, etc., with a view to create awareness about job opportunities available in various sectors, skills required to capture these opportunities and also to provide a common platform for recruitment. Government has decided to implement UGC scales to the teaching staff of Universities and Degree Colleges. An amount of Rs.2830 crores has been allocated for Higher Education Department in the 2010-11 Budget.


42. Keeping in view the need to provide qualitative health services to the people of the State and to achieve rapid growth in health services delivery system, the budgetary allocation has been substantially enhanced.

43. Arogyasri Scheme has been acclaimed at national and international levels. Cashless treatment is being provided for major ailments in network hospitals for all white card holders in the State. So far, over 5 lakh surgeries have been performed under Arogyasri. Efforts are being made for continuously improving the share of Government hospitals in Arogyasri scheme. A budget provision of Rs.925 crores has been made for the fiscal. The Government is also implementing Emergency Transport Service (108) with 752 ambulances and Fixed Day Health Service (104) with 475 mobile health vans for the benefit of the needy. This will also benefit those who are living in the remote and interior areas of the State.

44. Other initiatives taken up and in progress for expanding medical services include construction of Super specialty and Trauma blocks at NIMS, Hyderabad, NIMS University Campus at Bibinagar, Visakhapatnam Institute of Medical Sciences, Visakhapatnam, Millennium Block at Guntur General Hospital with participation of the alumni of the Guntur Medical College, upgradation of Community Health Centres. The Budget allocation for Medical and Health department for 2010-11 is proposed at Rs.4295 crores.


45. Our Government is committed to provide world class infrastructural facilities to make Andhra Pradesh a manufacturing hub for national and international companies. Special Economic Zones (SEZs) are being promoted in different regions to generate employment in export oriented manufacturing sector. Government of India has given approvals to 103 SEZs in Andhra Pradesh. Out of these, 73 SEZs are notified, 40 SEZs have already become operational and 54,776 jobs are already created. As a part of Government’s initiative of developing IT in tier-2 cities, APIIC is developing IT / ITES SEZs at Visakhapatnam, Vijayawada, Kakinada, Tirupati, Kadapa, Warangal and also Ranga Reddy districts.

46. During 2009-10, 48 large Industries with an investment of Rs.8,399 crores have been set up in the State, creating employment for 8,116 persons. In addition to this, proposals for 353 new large Industries have been received with an investment of Rs.81,092 crores which are expected to give employment for 1,11,328 persons.

47. The Government of India have accorded approval for development of Petroleum Chemical and Petrochemical Investment Region (AP PCPIR) in Visakhapatnam-Kakinada Region spanning an extent of 603.58 sq. km. A Special Development Authority by name Visakhapatnam–Kakinada Petroleum, Chemical and Petrochemical Investment Region Special Development Authority (VKPCPIRSDA) has been constituted for planned growth of the area by making master plan, providing civic amenities, etc.

48. The Krishna-Godavari Basin, located on the eastern coast of Andhra Pradesh, is one of the most promising areas for exploration and production of oil and natural gas. It is projected to be one of the largest oil / gas fields in the world. Keeping this in view Andhra Pradesh Gas Infrastructure Corporation has been created with APIIC and APGENCO holding the equity in the ratio of 51:49 respectively. APGIC joined the ONGC led consortium considering their extensive presence in the K.G. basin area and past experience in the field. This consortium has participated in the bidding of all 5 blocks (1-deep water block, 4-shallow water block) and won 4-blocks i.e. 1-deep water block, 3-shallow water blocks in KG Basin in NELP-VIII round of bidding.

49. 39 Integrated Handloom Development Clusters with an outlay of Rs.47.87 crores have been approved by the Ministry of Textiles, Government of India and are being implemented with an inclusive approach to cover weavers, both, within and outside Cooperative fold, for skill upgradation, common facilities, supply of basic inputs, design intervention, market support etc. to make the clusters self sustaining.

50. The Pochampally Handloom Park with an outlay of Rs.34.00 crores has been set up in Kanumukkala village of Nalgonda district under PPP mode which is providing employment to 300 weavers. 1,17,866 handloom weavers have been enrolled under Mahatma Gandhi Bunkar Bima Yojana which not only provides risk cover but also provides scholarships at Rs.1,200/- per annum to children from 9th to 12th standard, for four years covering 10,250 children.

51. The Government have agreed to one time waiver of loans sanctioned to the weavers cooperative societies and individual weavers under PMRY, Rajiv Yuva Shakti Scheme duly making a provision of Rs.312 crores in 2010-11 Budget.


52. Presently, our State accounts for 15% of national IT exports. As of 2009, total employment in IT Sector was 2,51,786 in the State. IT sector contributes about 52.09% of total exports from all sectors in the State.

53. Our Government is determined to make available the fruits of Information Technology and Communication across the spectrum of the Society. The Citizen Service Centers (CSC) Scheme involves setting up of 4,687 ICT enabled centers in rural areas covering all the Districts / Mandals of the State. The scheme is being implemented on a Public Private Partnership (PPP) mode with a view to provide all Government and other value added services to rural citizens in an integrated manner at their doorstep at an affordable cost.


54. To achieve accelerated growth of the State economy, major initiatives in the infrastructure sector are required. Accordingly, Government has taken up several projects in Road and Ports Sector. Andhra Pradesh Road Sector Project is being implemented with World Bank assistance for up gradation and improvement of roads. A prestigious project for construction of the second bridge across river Godavari near Rajahmundry including approaches, connecting road has also been taken up under PPP mode at an estimated cost of Rs.808.00 crores. Three more roads with a length of 520 km are proposed to be taken up for widening to four lanes under PPP mode with an estimated cost of Rs.3083 crores duly availing Viability Gap Funding (VGF) from Government of India.

55. The Government has initiated some major infrastructure projects in the greenfield sea ports as well as airports sector, under Public Private Partnership (PPP) mode, attracting huge private sector investments. India’s deepest Port Gangavaram Phase-I and Krishnapatnam Phase - I developed under PPP model have commenced commercial operations. The Government has also proposed to develop Vadarevu and Nizampatnam Ports. Our ports are expected to handle an estimated cargo of 100 million tonnes per annum by 2011-12.

56. We have taken up improvements of Rural Roads carrying low density traffic in the year 2009-2010 with assistance from National Bank of Agricultural and Rural Development (NABARD). So far NABARD has sanctioned 2035 Road and Bridge works costing Rs.2452.72 crores under Rural Infrastructure Development Fund (RIDF), out of which 1829 Road and Bridge works costing Rs.1991.31 crores have been completed. Remaining works are under various stages of construction. An amount of Rs.3104 crores is provided for Transport sector in B.E 2010-11.


57. Our Government accords highest priority for the development of power sector in the State. The present installed capacity in the state is 14,047 MW. All the existing gas based power projects have become fully operational with the commencement of supply of gas from the D6 block of KG basin. The stage 4 unit of VTPS has also been operational recently. With this, APGENCO’s installed capacity has reached 7587.9 MW, accounting for 40% of total energy requirement of the State.

58. Keeping in view, the future power demand of the State, the Government has allowed the APGENCO to take up massive capacity addition programme of adding 17,558 MW. Of this APGENCO is already in the process of implementing 10 projects with a total installed capacity of 3946 MW. Besides, 10 more projects with a capacity of 13612 MW are also planned. APGENCO has bagged the “Indian Power Award-2009” instituted by Council of Power Utilities for overall utility performance in thermal generation.

59. High Voltage Distribution System has also been implemented in 5.85 lakh Agricultural services with a total expenditure of Rs.1,838 crores for reduction of losses and improvement of voltage profile.

60. The State Government is implementing Backward Regions Grant Fund (BRGF) with Central Government assistance. The main objective of the programme is to correct regional imbalances in development by providing funds for bridging critical gaps in local infrastructure. This programme is being implemented in thirteen backward districts in the State. An amount of Rs.383 crores is allocated for this scheme in the 2010-11 budget.


61. Our Government accords highest priority to provide pure and sufficient drinking water to people residing in rural areas of the State. There are 72147 habitations, of which 51222 habitations have achieved full coverage. 16316 habitations are partially covered, 3571 habitations are uncovered while the balance 1038 habitations still have water quality problems.

62. During the year 2009-10, 13,375 works were taken up with a cost of Rs.3019.75 crores to cover 9,513 habitations covering fluoride affected habitations in rural areas and schools, with safe drinking water facilities. Out of the targeted coverage of 8500 habitations, works in 6259 habitations have been taken up with an estimate of Rs.414.00 crores.

63. The State Government is implementing the first year of the National Rural Drinking Water Programme (NRDWP), a flagship programme introduced by Government of India with an aim to provide adequate drinking water to every person in rural areas on a sustainable basis.

64. The State Government have recently concluded a loan agreement with the World Bank to take up CPWS, PWS, solid and liquid waste management schemes in 6 Districts at a cost of Rs.864 crores. An amount of Rs.595 crores is allocated for Rural Water Supply in 2010-11 budget.


65. Many policy decisions and initiatives have been taken to facilitate holistic growth of urban areas. The Government has taken initiatives to access funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The State has so far been sanctioned 268 projects with an estimated cost of Rs.12,525.45 crores. “Andhra Pradesh Municipal Development Project” is being launched with an objective to improve the civic infrastructure, particularly roads, drainage and water supply in the urban areas of the state at a projected cost of Rs.1670 crores with World Bank loan.

66. Our Government has completed the P.V. Narasimha Rao Expressway project with a cost of Rs.600 crores to connect the new International Airport with Hyderabad. Works are afoot for construction of Outer Ring Road (ORR) which is estimated to cost about Rs.6786 Crores.

67. Our Government has been giving top priority to provide protected drinking water in all urban local bodies by strengthening the existing infrastructure and service levels. During last five years, 140 water supply schemes with an estimated cost of Rs.3320.21 crores have been taken up so as to achieve the per capita water supply as per norms in urban areas by 2010-11. The Government is also committed to bring in the Godavari waters to meet current and future demands of Greater Hyderabad.

68. Our Government, besides planning infrastructure improvement in cities and towns has worked towards making them inclusive and pro-poor. Under Indira Kranti Patham - Urban, urban poor families are being organized into 1.80 Lakh self-help group in slums and were provided over Rs.2000 crores bank credit in the last two years to help them achieve better quality of life and to come out of poverty.

69. Due to the growing number of vehicles and migration from surrounding rural areas, Vijayawada and Visakhapatnam Cities are likely to face congestion if pro active measures are not taken quickly. Therefore, Government have decided to implement Bus Rapid Transit System (BRTS) under JNNURM in Vijayawada and Visakhapatnam Cities. The cost of providing required infrastructure for BRTS in Vijayawada and Visakhapatnam cities has been estimated at Rs.152.64 crores and Rs.452.93 crores respectively. An amount of Rs.4313 crores is allocated for urban development in Budget Estimates 2010-11.

70. Our Government believes that, the employees are the pillars of the administration. The State Government have considered the recommendations of Ninth Pay Revision Commission and after due deliberations, allowed a fitment benefit of 39% to all State Government employees and pensioners.

71. The resources in the proposed budget have been estimated realistically. However, since the recommendations of the Thirteenth Finance Commission regarding devolution of central taxes and fiscal deficit limits to be observed by the State Governments are yet to be announced by the Government of India, those inputs could not be incorporated into the proposed budget as of now. Consequently the State Government has restricted the fiscal deficit to 3% of GSDP for the year 2010-11 in accordance with the provisions of Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005.


72. The final accounts of 2008-09, show a revenue surplus of Rs.1004 crores. The fiscal deficit during 2008-09 was Rs.12406 crores which is 3.34% of GSDP and well below the limit of 3.5% of GSDP, as allowed by the Government of India for the year 2008-09.

ACCOUNTS 2008-09

73. The final accounts of 2008-09, show a revenue surplus of Rs.1004 crores. The fiscal deficit during 2008-09 was Rs.12406 crores which is 3.34% of GSDP and well below the limit of 3.5% of GSDP, as allowed by the Government of India for the year 2008-09.


74. Transactions as per the revised estimates of 2009-10 indicate a revenue surplus of Rs.2942 crores against the budgeted revenue surplus of Rs.2406 crores. The fiscal deficit is estimated at Rs.14282 crores which would be 3.60% of GSDP as against the limit of 4% of GSDP allowed by Government of India for the year 2009-10.


75. The Estimated Revenue for 2010-11 is Rs.113675 crores out of which State share in revenue is Rs.62702 crores, State share in central taxes is taken at Rs.14505 crores and central grants at Rs.13441 crores. Expected capital Receipts for 2010-11 is Rs.23027 crores.

76. For the financial year 2010-11, an expenditure of Rs.113660 crores is proposed out of which Rs.73347 crores is under non-plan and Rs.40313 crores under Plan. It is estimated that the revenue surplus would be Rs.3548 crores. The fiscal deficit is estimated to be Rs.12983 crores, which would be 2.97 percent of GSDP.

77. Sir, with these words, I now commend the Budget to the House for approval.


// JAI HIND //