Previous Budget Speeches


Economic Survey 1996-97

General review

Andhra Pradesh with a population of 6.65 crores as per 1991 census, is the fifth most populous state in the country. The decade growth rate of the state is 24.2 which is higher than the All India growth rate of 23.5. About 73 percent of the state 's population live in rural areas. The work participation rate in the state, as per 1991 Census, at 45 percent, is above the All India rate of 38 percent. According to the mid-year population estimates worked out by the Central Statistical Organisation ,The State's population for 1996-97 is projected at 7.32 crores. The geographical area of the state, the fifth largest in the country, is 8,75,000 Sq.Kms. The state has the longest coast line of 972Kms.

The Net State Domestic Product (NSDP), at constant prices, as per the Quick Estimates for the year 1995-96, registered an increase of 5.76 percent. The per Capita Income, at constant prices, increased by 4.02 percent during 1995-96 when compared with that of 1994-95

The South West monsoon, Which accounts for about 70 percent of the annual rainfall, was above normal by 16 percent during the year 1996-97. During the North East monsoon the rainfall received exceeded the normal rainfall by 37 percent. During the agricultural year 1996-97, the State was battered by two cyclonic storms causing heavy crops in the coastal Andhra region and particularly affected the districts of Srikakulam, Vizianagaram, East Godavari, West Godavari, Krishna, Guntur, Parkasam, Nellore, Chittoor, Kurnool, Cuddapah, Ananthapur, Mahaboobnagar, Warangal, Khammam and Medak. The damage caused on account of these rains was estimated to be of the order of Rs.7576 Crores. The crop damage was 22.57 lakhs he tares of which 6.03 lakh hectares under Paddy and the remaining 16.54 lakhs hectares under other crops such as Coconut, Groundnut ect.

As per the final estimates the area under food grains increased during the year 1995-96 to 68. 94 lakh hectares registering an increase of 0.2 percent compared to the year 1994-95. The estimated food grains production during the year 1995-96 is of the order of 116.64 lakh tonnes as against 117.83 lakh tonnes during the year 1994-95 showing a decline of one percent.

The 15th Quinquennial Livestock Census conducted during the year 1993, with October 15th as the reference date, revealed an increase of 23 percent in respect of crossbreed cattle(white) and an increase of 69 percent in case of improved poultry. The increase in the number of tractors was as much as 73 percent compared to the previous census conducted during the year 1987.

The Index Numbers of Industrial Production during the year 1995-96 registered an increase of 13.5 percent over that of 1994-95.

The installed generating capacity of power in the state increased to 6254 MW, by the end of December'96 while the power generated was 18,185 MKWH. A total of 17.56 lakh agricultural pumpsets were energised and 63.9 percent of the hamlets and 95.9 percent of Dalithwadas were electrified by the end of December '96. Power generation during 1995-96 was 23.96 billion KWH.

The Andhra pradesh State Road Transport Corporation (APSRTC) had 16,402 vehicles on road and the average number of passengers travelling daily was 119.49 Kms, National Highways 2,949 Kms and District Roads constitute 1,01,484 Kms. Railway routes cover 5,056 Km, of which around 3,935 Kms are broadgauge lines. There are 709 railway stations in the state.

The number of mandays last due to work stoppages during the year 1995-96 was 27.92 lakhs compared to 37.59 lakh mandays during the year 1994-95, the decrease being 25.7 percent

A tonal number of 39,200 fair price shops are functioning in the State, of which 32,024 are in rural areas as on 31-12-1996 . In all , as many as 1.12 crore card holders covered by the Public Distribution System.

The wholesale price index of agricultural commodities moved up by 8.7 percent from December 1995 to December 1996. The consumer price index for industrial workers has increased by 7.8 percent during the November 1995 to November 1996 period. The rise in the consumer price index of agricultural labourers was 4.9 percent in the consumer price index of urban non- manual employees during July '96.

The number of Scheduled Commercial Bank Offices in the state, as at the end of September 1996 was 4881 registering an increase of 0.85 percent over the corresponding period last year About 51 percent of the Bank Offices were in the rural areas, sharing about 14.95 percent of total deposits and 17.37 percent of the total outstanding credit.

An amount of Rs.218.68 crores was advanced as long term loan during 1995-96 by Andhra Pradesh Co-operative Central Bank (APCCB). The Commercial Banks advanced Rs. 1076 crores as crop loans and Rs. 395 crores as Agricultural term loans, respectively during 1995-96.

Human Resources

According to 1991 census, the population of Andhra pradesh is 6.65 crores. The state continues to be the 5th most populas state in India. The density of population at 242 persons per square kilometre is lower than the all India figure of 276. The data on population characteristics of the state and All India (1991 Census)and working population in Andhra Pradesh are given in Anexure I, II, and III respectively.

The decadal growth rate of population during 1981-91 is 24.22 percent which is marginally higher than the All India growth rate of 23.5 percent. This shows a reversal of the situation observed during the preceding three decades.

Decadal Growth rate of population

The regional distribution of population and growth rates are fallows.

The Urban and Rural population during 1991 stood at 178.87 lakhs, (26.89 percent) and 486.21 lakhs (73.11 percent), respectively, as against 23.32 percent and 76.68 percent during 1981. The decadal growth rate of urban population during 1981-91 was 48.23 percent and 18.41 percent respectively.

The working population in 1991 was 299.64 lakhs forming 45.05 percent of the total population as against 45.76 percent in 1981. There was, thus, a slight decline in the percentage of working population in 1991 compared to 1981. The female working population increased from 33.54 percent in 1981 to 34.32 percent in 1991. The percentage of male working population was 55.48 percent in 1991 as against 57.68 in 1981. the work participation of male workers in rural areas declined by nearly 2 percent while that of female workers increased by nearly 2.5 percent. Significantly there was an increase of nearly 4 percent in the work participation of female main workers in the rural area which was 36.11 percent as per 1991 census as against 31.95 percent in 1981. The percentage of main workers to total population has slightly increased from 42.26 to 42.77, which is the highest among the major states. The percentage of marginal workers to total population has declined from 3.5 in 1981 to 2.28 in 1991.

The work participation rate in the state (45.05) is far ahead of the work participation rate of All India (38.03). The state had recorded the highest work participation rate for both males and females among all the major States. The percentages of working population in the state among males at 55.48 and female at 34.32 are higher than the corresponding percentage (i.e. 52.00 and 22.96) at All India level.

The proportion of cultivators among total main workers has declined from 32.74 percent in 1981 to 27.74 percent in 1991. The 5 percent decrease in the proportion of cultivators has almost been made up by 4 percent in the proportion of agricultural labourers which has increased from 36.79 percent to 40.86 percent. The proportion of agricultural labourers to all main workers in the state is the highest among all states. The cultivators and agricultural labourers together constitute 80.40 percent of the main workers in the rural areas in 1991 as against 80.40 percent in 1981.

The sex ratio, in 1991 was 972 females per 1000 males, as compared to all India ratio of 927.

The death rate which was 15.7 per 1000 in 1957 decreased to 8.6 in 1993 while the birth rate which was 28.8 in 1957 decreased to 24.3 in 1993. The infant mortality rate which was 92.6 per 1000 live births in 1957 decreased to 64 in 1993.

State Income

Net State Domestic Product is estimated at constant (1980-81) prices and current prices from 1980-81 to 1995-96(Q), is shown in Annexure IVA to VI.

As per the quick estimates for the year 1995-96, the Net State Domestic product at current prices is Rs.62,036 crores, as against Rs.55,230 crores during 1994-95 registering an increase of 12.32 percent. The Net state Domestic product at constant prices is estimated at Rs.13,776 crores during 1995-96, as against that of Rs.13,027 crores during 1994-95 showing an increase of 5.76 per cent.

Comparison of VSDP at Constant (1980-81) price.




Andhra Pradesh

All India




































Note: Figures in the brackets are percentages total

R: Revised P: Provisional Q: Quick

The Per Capita Income at current prices increased from Rs.7798 in 1994-95 to Rs.8615 in 1995-96 registering an increase of 10.48 percent. At constant(1980-81) prices, the per capita income increased from Rs.1839 in 1994-95 to Rs.1913 in 1995-96 showing an increase of 4.02 percent.


There has been improvement in the levels of productivity of a number of crops, attributable mainly to improved technology and package of practices. The productivity levels attained during 1994-95 have shown increasing trends in respect of the most of the crops compared to the quinquennial average of the period from 1989-90 to 1993-94.

However, the productivity levels of principal crops except Jowar and Groundnut have declined during 1995-96 compared to 1994-95. (annexure-VII).


Area Production and Yield of Principal Crops during 1995-96

Sl. No.


Area ('000 Hect)

Production (Lakh Tonnes)

Yield in Kgs/hect





(Avg.89-90 to 93-94










































72 $.

72 $.

71 $.























Source: Directorate of Economics & Statistics, AP

$ Tonnes * Lakhs bales of 170 Kgs

As per the final estimates the foodgrains production during 1995-96 is of the order of 116.64 lakh tonnes as against 117.83 lakh tonnes in 1994-95 the decrease being one percent. The Kharif foodgrains production during 1995-96 was 75.49 lakh tonnes as against 74.73 tonnes during 1994-95, the increase being one percent. Food grain production during Rabi Season decreased to 41.15 lakh tonnes in 1995-96 from 43.10 lakh tonnes in 1994-95, the decrease being 4.5 percent.

The preliminary area estimate for Kharif 1996-97 show that the area under paddy has decreased by 0.34 lakh hecters when compared to that of Kharif 1995-96. The foodgrain crops occupied an extent of 42.75 lakhs hectares showing a decrease of 0.95 lakh hectares over previous Kharif season while the area under oil seeds decreased by 0.70 lakh hectares.

The preliminary production estimates of Kharif 1996-97 places the total of grain production at 74.32 lakh tonne registering a decline of 1.6 percent due to a 4.2 per cent decline in the production of paddy. There is a noticeable decrease of 28.6 per cent in the production of Kharif oil seeds over that of previous Kharif season.

Though there has been a gradual increase in the net areas irrigated up to the year 1991-92, it decreased in the subsequent years. The net area irrigated which was 43.51 lakh hectares during 1991-92 decreased to 41.33 lakh hectares in 1995-96, showing a decrease of 5.2 per cent. There is a decrease in the net area irrigated under canals and an increase under wells during the period 1991-92 to 1995-96. However there were fluctuations in the net area irrigated under the remaining irrigation sources viz., tanks and other sources which directly depend on the receipt of rainfall (Annexure-VIII)

Seasonal Conditions 1996-97

During the year 1996-97, the south-west monsoon has set in the second of june '96 and advanced into Rayalaseema and south coastal Andhra regions on 9th june and further advanced into remaining parts of 11 june. The monsoon became active during the second fortnight of June .The south-West monsoon resulted in an average Rainfall of 734 mms as against the normal Rainfall of 634 mm, the excess being 16 per cent. The rainfall during this period was in excess in Rayalaseema and coastal Andhra regions except Srikakulam and Vizianagaram districts and normal in the reaming districts barring Nizamabad where it was deficient. Owing to heavy rains in the month of June and September, standing crops were effected in Kurnool, Ananthapur, Cuddapah, Medak, Mahaboobnagar and warangal districts.

In the North-East monsoon period the state as a whole received an average rainfall of 281 mm as against the normal rainfall of 205 mm, the excess being 37 per cent.

There was heavy rainfall in South Coastal andhra and Rayalaseema districts in the third week of October due to depression resulting in damage to standing crops particularly in prakasam district hit East Godavari and West Godavari districts on 6th November and caused heavy rainfall and gales resulting in heavy loss to human lives, cattle, standing crops and houses.

The details of rainfall received season-wise and region wise and district-wise deviation from normal are given in (Annexure-IX and X)

Rural Development

The following rural development programme are being implemented in this State through DRDAs Centrally sponsored Schemes:


IRDP is a beneficiary oriented Programme, helping the target groups below the income line of Rs.11,000/- per annum by providing income generating assets. As against the total releases of Rs. 82.29 crs during the year 1995-96, an amount of about of Rs.70.90 crores has been released upto end of Dec-96 (1996-97). Against the target of beneficiaries of 1,00,000 persons during the year 1996-97, the achievement was 1,22,863 persons against the target of 1,00,000 persons.


TRYSEM is a training Programme for Rural Youth to enable them to get self or wage employment. Stipend to the trainees @ Rs.250 to Rs.500 per month during training period. Under the Scheme the targets and achievements recorded were as fallows.





1996-97 upto Dec-96


Targeted Trained




Persons Trained




S.Cs Trained




S.Ts Trained







Under TRYSEM INFRASTRUCTURE as against the total release of Rs.161.53 lakh during the year 1995-96, the release were Rs.206 lakhs upto Dec-96.


Development of Women and Children in rural areas(DWCRA) is a sub-scheme of IRDP which envisages provision of revolving fund to support income generation activity for group of 10-15 members. It also providing facilities to look after their children in respect of their health, nutrition, immunisation etc. The scheme is implemented through out the state. As against the expenditure of Rs.2423.90 lakhs has been spent upto Dec-96. The coverage of the groups was 17165 during 1995-96 and upto dec-96 the coverage was 14886.


Under DPAP the expenditure recorded during 1995-96 was Rs.2928.16 lakhs while this year upto Dec-96 is was Rs.1602.45 lakhs. The scheme envisages constituting multi-disciplinary water shed teams for providing micro watersheds.


National Social Assistance Programme Envisages Old age Pension Rs. 75/- to rural poor aged above 65 years and targeted to cover about 8.95 lakhs persons. Another part of the scheme is to provide assistance of Rs.5000/- to the bereaved families of those poor persons living below the poverty line who are the bread winners within 64 years of age if it is a natural death and Rs. 10,000/- is the death is due to accident. Under the scheme the target for 1996-97 is 39,300 families.

National Maternity Benefit Scheme is the third component of the National Social Assistance Scheme. Under this scheme Pregnant women above 19 years of age and living below the poverty line are eligible to the assistance of Rs. 300/- from Government of India and Rs. 200/- from the State Government. The target for the current year is 3,88,200 beneficiaries.

Supply of tools to rural artisans

The Programme for providing tool kits to rural artisans is implemented in 22 Districts of the state. An amount of Rs.367.67 lakhs was spent on this programme during 1995-96 against which the expenditure this year upto Dec-96 was Rs.300.87 lakhs. Tool kits numbering 30511 were supplied to rural artisan during the year 1995-96, while this year upto Dec-96 16704 kits were supplied.

Integrated waste Land Development Programme

The scheme for integrated waste land development is being implemented in 14 districts and fully funded by Government of India.


Despite the fact that Andhra Pradesh was a late entrant in the industrial horizon of the country, the State has a virtual monopoly in the in the production of various minerals such as Barytes, Mica, Asbestos, Limestone, Copper, Bauxite, and Coal for starting many minerals based industries in the State. It is an acknowledged fact that the State is prosperous in agricultural field and a leading producer of Groundnut, Tobacco, Cotton, etc. which in turn are helpful for starting agrobased industries such as Oil mills and cigarette Industry. The agricultural wastes and residues and bagasse from sugar factories provided ample scope for the development of paper industry.

Industrial Production

Considering the quantum of industrial production in the State, out of 43 selected industries for which production data is collected by the Directorate of Economics & Statistics, 25 industries indicated increase in output during the year 1995-96 compared to pervious year i.e. 1994-95. A distinct upward trend in production was noticed in Drugs and Pharmaceuticals industry (10837.4 per cent ) followed by Heavy Electricals (129.5 per cent ) Transformers ( 118.7 per cent) M.S.Rounds, Bars, Flats, etc. (49.5 per cent) Ferro Alloys (36.4 per cent House Service Metres (34.9 per cent ) Oxygen (33.5 per cent), Sugar (31.8 per cent) and Machine Tools (26.9 per cent ) respectively.

On the other hand 13 industries recorded a fall in their output during the year 1995-96 compared to pervious year. Deceleration in the production was particularly evident in Wines and Special quality Spirit (65.0 per cent ) followed by forgings (61.8 per cent ), Water Coolers ( 32.5 per cent ) Motor Vehicles (Body building ) (30,9 per cent ) Vanaspathi (26.1 per cent ) and Bakery Products (22.3 per cent ) respectively. This decline in industrial output was partly due to the Power shortage experienced in the State from time to time (Annexure-XIA)


There was a marginal increase in the installed generating capacity during the year 1995-96, compared to the previous year. The installed generating capacity of 44 MW added in the year 1995-96, raised the total installed generating capacity to 6,155 MW by the end of 1995-96. The total installed capacity has increased to 6254 MW by the end of Dec-96. Thermal capacity accounts for 3350 MW including states share of 897 MW from the central sector. Hydel capacity accounts for 2661 MW and balance capacity comprises of 192 MW gas based and 51 MW wind based.

The power generation at the end of December `96 was 18,185 MKWH. The share of Thermal (66.4 percent) generation in the total generation was considerably more compared to that of Hydel (33.6 per cent).


Power Generation in the state




As on 31-12-1996


9687 (47.19)

6662 (30.61)

6106 (33.6)


10842 (52.81)

15103 (69.39)

12079 (66.4)

Source: APSEB

The power consumption which was only 0.60 billion KWH in 1960-61 increased to 23.87 billion KWH in 1995-96. The percentage of village electrified increased from 8.9 in 1960-61 to hundred percent. Consumption of power for agricultural purpose constituted 48.85 per cent of the total consumption of the state during 1995-96 compared to 47.77 per cent during 1994-95. The per capita consumption of power in the state was 385 KWH in 1995-96 as against 364 KWH in 1994-95.

The total number of agricultural pumpsets energised to 17.56 lakhs by the end of Dec`96 and the percentage of hamlets and Dalithwadas electrified was 63.9 and 65.9 respectively by the end of December, 1996 (Annexure XII).


The state Government have been maintaining a road length of 1,46,944 Kms. The length of the State Highways in the State is 42,511 Kms of which around 34,090 Kms of roads are Black Topped. National Highways measuring 2,949 Kms are maintained of which 2,916 Kms are Black Topped. The extent of district roads in the state is 101,484 Kms.

Transport plays an important role in the State economy. The demand for public transport facilities has been increasing. The Andhra Pradesh Road Transport Corporation is the second largest undertaking in the transport sector in the country next to Maharashtra. The Corporation has been operating in 7,893 routes covering a daily volume of operation of 120.14 lakh Kms. The number of vehicles (APSRTC) on road was 16,402 as on November 1996. The number of passengers carried per day increased from 113.17 lakhs in September, 1995 to 119.49 lakhs in May`96.

The corporation endeavours to meet the demands of the travelling public by constantly expanding its operation. The task is carried out systematically through opening of new bus stations, with modern facilities. The total number of bus stations was 452. The number of bus depots computerised stood at 150 and the number of way side bus shelters constructed was 1,378 as at the end of November '96.

Next to roads transport by railways plays a predominant role in the State. The State is covered by train route of 5,056.19 Kms. The state is covered by the South Central Railways division with 4,264.15 Kms. out of the total train route, the length of Broadguage line is 3935.34 kms. There are in all 709 railway stations in Andhra Pradesh.


The role played by Banking in economic development and the socio-economic life of the country needs no elaboration. They act as the repositories of the community's savings and as purveyors of credit. There is perhaps not even one sector of the economy which is not having any relationship with the banking sector .

As at the end of September 1996 there were 4881 branch offices of Scheduled Commercial Banks in the State with total Deposits of Rs. 23873.38 crores and total bank credit of Rs. 18246.90 crores. During the period ending September 1996 the total no. of bank branches increased by 0.85 percent while the total deposits increased by 19.14 percent and the Gross credit by 13.01 percent over the corresponding period of the previous year. Though the Rural Branch offices constituted a large chunk of 50.60 percent of the total branch offices in the state but their share in total deposit mobilisation was 14.95 percent and 17.37 percent in total Bank credit at the end of September1996.

The Credit- Deposit Ratio in the state as at the end of September 1996 was worked out to be 76.4 as against 57.5 at the national level. The Credit - Deposit Ratio in the state was far better than the ratio of other southern states except Tamilnadu where it was 99.1 percent. (Annexure XIII)

Agricultural Finance

An amount of Rs. 218.68 crores was advanced as long term loan during 1995-96 by Andhra Pradesh Co-operative Central Bank as against Rs. 196.52 crores in 1994-95. The commercial banks released an amount of Rs. 1076.25 crores and Rs. 394.53 crores towards crop loans and Agricultural term loans during the year 1995-96 as against Rs.1691.38 crores and Rs.480.95 crores respectively in 1994-95. As on 31.3.1996 the banks outstanding loans were Rs. 1841.96 crores and Rs. 1698.23 crores, advanced under crop loans and term loans respectively.


The Wholesale Price Index of agricultural commodities, on point to point basis increased by 9.3 per cent from March' 95 to March '96 in the state as against the increase of 5.1 per cent at the All India level. However there was an increase of 8.7 percent from December'95 to December '96 in the state. There was an increase of 4.9per cent in the consumer price index for agricultural labourers from July'95 to July'96 in the state as against the increase of 7.0 per cent and 8.7 per cent from November'95 to November '96 for state and All India respectively. The increase in the consumer price index for urban non-manual employees from July '95 to July '96 in the state is 9.3 per cent as against the increase of 8.9 per cent at All India level (Annexure-XIV and XV).

The retail prices of essential commodities on a point to point basis from December 1995 to December 1996 revealed an upward trend except for six commodities. The increasing trends in the price levels were as follows :

Rice (19.2%), white Jowar ( 12.9%), Gramdal (51.2%),Gingelly Oil (4.2%) , Meat with bones (14.4%), Milk (DDC), (17.6%) Brookebond Tea (14.0%) and Eggs (3.6%) Potatoes (3.6%) and Tomatoes ( 1.9%).

However a decline was registered in the prices of Arhardal (5.6%), Vanspathi (0.4%), Onions (11.7%), Tamarind (1.0%), Coffee powder (17.8%) and Dry chillies (20.5%).

Public Distribution

The total number of fair price shops in the State were 39,200 out of which 7,176 are located in urban areas and 32,024 in rural areas. The number of families served as on date by Public Distribution System is estimated at 1.62 crores, of which 1.12 crores are white card holders.

There has been an increase in the distribution of wheat ,edible oil, sugar and kerosene through Public Distribution System compared to that of the preceding year . However, there is a marginal decline in the distribution of rice by December '96.

Social Services

The strategic importance of social sectors for achieving basic objectives of economic growth, equity and self reliance is reflected in the process of economic reforms by increasing the investment in human capital development, enhancing budget provisions under various anti poverty programmes and accelerating the labour intensive growth. The State has been making substantial provisions year after year under this sector. As against the approved outlay of Rs.2,066.3 crores under social services the expenditure incurred upto the end of 1995-96 worked out to about Rs.1912 crores. The outlay under Social Services in the VIII Plan constituted 19% of the total approved outlay.

General Education

According to 1991 Census, literate constitute 44.1% of the total population of the State with 14th rank among the States in the country. Literacy is one of the indicators of Human Development . India was ranked 135th among the 174 countries according to the Human Development Index prepared by the World Bank recently. This position requires urgent steps for improving literacy rate.

Education is one of the principal instruments for achieving the socio-economic development and sustained efforts have been taken by the Government for improving the literacy and educational levels.Elementary education was included as one of the Basic Minimum Services. Several programmes have been taken up by Government under formal and non-formal education for maximising enrolment and minimising drop out ratios in the schools. In the context of universalisation of elementary education, pre-primary education programmes have been taken up. Primary schools were opened in school-less habitations. In association with Government of India, Operation Black Board (OBB) was taken up in 1987-88 for providing minimum facilities in primary schools. As a result of various measures taken by Government the no. of primary schools has been steadily increasing recording 56,021by 1994-95 as against 55,606by 1993-94.

Under non-formal education, in consonance with the National Education Policy, 1986 254 projects were started bringing 100 centres under each project, thus, covering 25,000 school dropouts every year from class V to X.

Under Secondary Education, State Government placed paid more attention on vocational education which was first introduced in the State in 1984-85. The main aim is to prepare the students employment worthy and capable to take up self employment programmes. At present there are 297 vocational high schools and 48 Mandal Vocational Education Centres operating in the State.

In the field of higher education the policy of State Government is to encourage private participation while closely monitoring the progress achieved and targeted year after year.

Technical Education

There were 21 professional institutions with an intake capacity of 5962 at the time of the formation the State which recorded an enormous increase in the recent past.

During VIII Plan, as against provision of Rs .56.50 crores the expenditure incurred upto the end of 1995-96 was Rs. 41.62 crores. This includes the World Bank Assisted Centrally Sponsored A.P. Technical Education Project. This Project envisages opening of pucca buildings, laboratories, Technical equipment, Furniture. The project also provides setting up of Computer Centres in 7 Government Polytechnics with necessary equipment's. The Faculty Development Programme under the project includes training of staff for better management. An amount of Rs. 12.60 crores has been provided during 96-97, out of which Rs.11.30 crores is earmarked for the Externally Aided Project.

Medical & Health

The National Health Policy has given specific guidelines on these programmes to provide a system as nearer to the needy as possible. The care of infants and maternity mortality care of pregnant woman has received greater focus through immunisation through national net work of medical and para medical personnel.

Health care also calls for improvement in nutritional status, improvement in sanitation and proper enforcement of Food Adulteration Act. A proper check on drugs is very much necessary, as the influx of spurious and substandard drugs into the market causes several health hazards. The Directorate of Health, is the agency for the implementation of various programmes relating to hospitals having a bed strength of 30 or less dispensaries and PHCs. These programmes include Family health programmes and those coming under the Minimum Needs Programme.

During the VIIIth Plan period, 6 dispensaries and 7 hospitals with 170 beds were sanctioned. Due to increase in population, the demand for opening of more and more hospitals and dispensaries increases Minimum Needs Programmes is aimed at providing minimum basic medical basic medical and health facilities to the rural areas through sub-centres and family health centres upgraded PHCs, community health centres etc. Funds under Minimum Needs Programme are borne by the Govt. of India cent percent. During VIIIth Plan period an amount of Rs.38.15 crores has been provided under (MNP) Minimum Needs Programme.

The following table shows the important indicators of health facilities in the State as compared to all India.


Health Indicators


Physical indicators

Andhra Pradesh

All India


No.of PHC




No.of Sub-centres




Crude birth rate (Provisional)




Crude deatj rate (Provisional)




Infant mortality rate




Life expectancy (1986-91)



Sources : Registrar General, .Govt. of India

Water Supply and Sanitation

The responsibility of Government is to ensure adequate supply of protected drinking water and hygienic disposal of waste material. Rural Water supply and sanitation is one of the priority items finding place in the Minimum Needs Programme. The State has given lot of emphasis for provision of safe drinking water to rural habitations during the successive plan periods. The investment under rural water supply and sanitation are stepped up year after year with a view to meet the growing needs of the people. An amount of Rs. 550.44 crores has been spent under this programme in the State for the years 1992-93 to 1995-96 which constituted 28.8% of the total expenditure e under social services. In respect of urban areas, the State has got 7 Municipal Corporations, 108 Municipalities. Chief Engineer (PH) is incharge of investigation, designs and execution of water supply and sewerage schemes in urban areas other than the Hyderabad Municipal Corporation.


Provision of housing facilities in the State and particularly to those coming from the weaker Sections of the society is one of the basic welfare measures of the state government .The agencies implementing the schemes under housing include social welfare department for distribution of house sites and director of weaker sections welfare for undertaking housing programmes. The other agencies, A.P. Housing Board, Chief Engineer Buildings, A.P.Police Housing Corporation, A.P housing Corporation etc., are engaged in providing housing facilities. Apart from Government contribution, institutional finance is also provided on priority basis through Nationalised Banks and other non banking financial institutions. During VIIIth Plan period an amount of Rs.268.70 crores was provided against which the expenditure incurred upto 1995-96 was Rs.373.49 crores,the excess being met through other sources of finances.

Urban Development

The population of the state as per 1991 (census) was 6.65 crores of which the urban population with 1.78 crores constituted 26.8% of the total population. As elsewhere in the country, urbanisation has been in rapid increase. As per 1981 census the urban population constituted 23.3% of the total population. Migration from rural to urban areas resulted in series of problems like shortage of housing, transportation and traffic, health and sanitation, medical and other social needs required for optimum standards of living. Apart from this, location of industries in the peripheral area of urban settlement also resulted in enormous growth of slums. With a view to tackle all these problems together, master plans of various urban areas are drawn upon a perspective basis.

labour and Employment

Labour situation

Enforcement of minimum wages for unorganised industrial and non-industrial workers and agricultural labour, eradication of child labour and effective coverage and implementation of all labour laws in the State are the main objectives of the State and the Department of labour is vested with the responsibility for realisation of the goals. about 33.5% of the total population in the state are engaged in different trades as labourers. With the rapid industrial growth there has been study growth in the labour force. There were about 22,500 factories in the state employing about 3.88 lakh workers in 1990 and by 1996 the number of factories increased to 55,450 employing about 9.00 lakh workers. The registered trade unions were 6,167 in 1990 which increased to 14,932 by 1996. Maintenance of industrial peace which is very important for increase in production and productivity in all the more essential. With the rapid increase in the labour force, industrial disputes also increased and the work load on account of timely intervention and conciliation for settlement of disputes and maintenance of industrial harmony has increased manifold.

The following table shows the increase in the labour force in the State as a result of rapid industrialisation.






No.of factories




Workers employed (Lakhs)




No.of Trade Unions




No.of shops and establishments (lakhs)




Transport undertakings(No.)



Source: Commissioner of Labour, Government of Andhra Pradesh

Industrial Disputes

The number of industrial disputes, workers involved and man days lost are indicators of labour-management relations in industries. During the year 1995-96, the total number of industrial disputes in the State were 110 against 86 in 1994-95. The man days lost in the industrial work stoppage were 27.92 lakhs in 1995-96 against 37.59 lakh mandays in 1994-95, recording a decline of 25.7 percent. In other words the labour unrest in the state indicated an improvement in 1995-96.

In the current year ie., during 1996-97 (till December, 1996) there were 24 industrial disputes in the state of which 10 were strikes and 14 were lockouts. The number of mandays lost as a result of these disputes were 27.98 lakhs out of which 14.21 lakh mandays were lost in strikes and 13.77 lakh mandays lost in lockouts as can be seen from the following table.

Industrial Disputes







No.of Industrial disputes















No.of man days lost














Source: Commissioner of Labour, Government of Andhra Pradesh, Hyderabad

Employment situation

Provision of adequate employment opportunities is the responsibility of any welfare state. In consonance with the national policies on employment, the state on its own has been engaged in exploring various opportunities for maximising the employment potential both in the public as well as private sectors.

The Commissionerate of Employment and training is the official agency to undertake the implementation of various Govt.policies for realising the goal.

Employment in the State has two components viz, normal employment schemes and world bank assisted centrally sponsored schemes.

During VIII plan period, an amount of Rs.21.41 crores was allocated towards employment schemes of the State Govt. including the Worlds Bank assisted centrally sponsored schemes. The expenditure incurred upto the end of 1995-96 worked out to Rs.13.94 crores. Out of this, the expenditure incurred towards normal employment schemes worked out to Rs.0.28 crores and the remaining amount of about Rs.13.66 crores was spent on the Craftsmen Training Schemes sponsored by World Ban.

During the year 1996, a total no. of 450286 candidates have enrolled their names at the employment exchanges in the State against 393297 candidates in the year 1995 thus recording an increase of 14.5%. The total No.of vacancies notified to the employment exchanges in the State were 30401 in 1996 against 36534 in 1995 recording a fall of 16.8%. The placements made by the employment exchanges were 16606 in 1996 against 23788 in 1995. The proportion of placements to vacancies notified in 1996 was 54.6 against 65.1 in 1995. The No.of candidates on the live register of employment exchanges in the State at the end of December 1996 were 29.07 lakhs against 27.18 lakhs in 1995 recording an increase of 6.95 %. Out of the 29.07 lakh number of unemployed persons, 24.68 lakhs were educated and 4.39 lakhs were unskilled/illiterate candidates.


Employment Situation in Andhra Pradesh







Vacancies notified






Candidates on the live register at the end of the period (in lakhs)



Source : Commissioner of Employment and Training, Govt. of A.P.,Hyd.

Employment in the organised sector

The total number of persons employed in the organised sector in the State increased from 19.25 lakhs at the end of September, 1995 to 19.53 lakhs at the end of September 1996 recording an increase of 1.5%. The organised sector comprises of all establishments in the private sector employing 10 or more persons. Out of the total employment in the organised sector, at the end of September, 1996, Public sector accounted for 14.56 lakhs and the remaining 4.97 lakhs were employed in the private sector. The women employed in the organised sector at the end of September, 1996 were 2.99 lakhs against 2.90 lakhs at the end of September, 1995, indicating an increase of 3.1 percent over previous year.

Employment the Organised Sector :


At the end of




Public sector



Private sector






Source : Commissioner of Employment and Training, Govt. of A.P., Hyd.

Weaker Sections Welfare

Welfare of Scheduled Caste

Weaker sections of the Society Constitutes Scheduled castes, Scheduled Tribes and other Backward Classes etc. According to 1991 Census the population of Scheduled castes and Scheduled Tribes together Constitutes 22% of the total population of the State. The Constitution of India makes it obligatory on the part of the Government to take all steps for the upliftment of the Weaker Sections of the Society and render Society and render Social Justice. Ever since independence and particularly after the formation of the State of Andhra Pradesh, Government have been making serious efforts for the development of weaker sections by taking up several programmes in the successive Five year Plans for the upliftment of these sections.

The important parameters for the development are increase in educational levels and economic upliftment. As a result of serious efforts taken up by Government literacy rate among S.Cs. rose to 25.89 percent and 13.63 percent in respect of Scheduled Tribes. while the general literacy level of the State recorded 44.1 percent in 1991.

Literacy Rates among Scheduled Castes


Sl. No.



Andhra Pradesh

























Source:Registrar General of India.

Tribal Welfare

Tribals in the State are mostly concentrated in 8 I.T.D.A area and are spread in mostly pockets which are identified as M.AD.A pockets. Separate strategies are designed for the development of Scheduled Tribes within the overall frame work of the guidelines suggested by Government of India from time to time. The said plan consists of normal schemes of the Tribal Welfare Department and those of centrally sponsored schemes. During VIII plan an amount of Rs. 130.04 crores was approved against which the year wise expenditure up to the end of 1995-96 worked out to be Rs. 124.80 crores.

Literacy rates among Scheduled Tribes


Sl. No.



Andhra Pradesh

























Source: Registrar General of India

Illiteracy, poverty and unemployment are the main reasons for the Socio-economic backwardness of any society. 73% of the population live in rural areas in the State and bulk of them depend on agriculture. Persons living below poverty line are from the weaker sections. In order to raise them above the poverty line the basic minimum requirement like shelter, food and clothing have to be fulfilled. By March 1995, 54115 acres of land was distributed for house-sits among 13.45 lakh houseless poor.

In the VIII Five Year Plan, an outlay of Rs. 450.00crores was approved against which the total expenditure at the end of 1996 worked out to Rs. 352 crores. As a matter of policy 15% and 6% of the general funds were earmarked for the development of Scheduled caste and Scheduled Tribes respectively. The concept of Special Component Plan was formally introduced in VI Five Year Plan to ensure that proper allocations are made and the funds utilised properly. A high level Co-ordination committee at the State level with Chief Secretary as Chairman was set up. At the district level special cells were set up with a view to implement and review of the Special Component Plan. In each department, an officer was nominated as a Liaison officer to attend to the work relating to implementation and review of the Special Component Plan. Instructions were issued that the amount provided under the Special Component Plan for Scheduled Castes and Tribal sub-plan for Scheduled Tribes should not be diverted for any other schemes.

Social Security & Welfare

Welfare of Handicapped

Andhra Pradesh is one of the pioneer states in the field of welfare of the handicapped with a separate Directorate and Corporation for them. The main aim is to ensure that they are not looked down by the fellow citizens as second grade persons and to put them into the mainstream of public life besides helping them to earn their own livelihood. Government have taken up several schemes which includes scholarships, hostels, incentive training centres, residential schools, supply of prosthetic ability aids etc.

Social security

The major schemes under this are giving pensions for the old, widows, landless agricultural labour, destitute persons who are above 65 years old for their substance. Government provided Rs.10.00 lakhs for pensions in the VIII Plan.

Representing poorer sections rehabilitation of beggars is one of the important Social Security measures undertaken by the State Government by providing Rs. 15.00 lakhs during VIII Plan for ensuring beggar homes, for disabled, aged, lepers and destitute children etc.

Women Development & Child Welfare

The population of Backward classes constituted a sizeable proportion in the State's Population. The State Government has been implementing various welfare programmes to create new avenues for these sections. In the VIII Five Year Plan which proposed to accelerate the pace of development of Backward Classes by expanding some of the existing schemes mainly designed for alleviation of poverty, to provide hostels and increase educational facilities to organise activities for the professional castes / artisans and providing training to them. Against the outlay of 92.50 crores provided in the VIII Five Year Plan for the welfare of Backward Classes, the expenditure incurred at the end of 1995-96 worked out to Rs. 73.83 crores.

Minorities Welfare

The Minorities Welfare Department was constituted by the Government of Andhra Pradesh vide G.O.Ms.No.582,G. A. (Ar & T Desk ) Department, dated ; 2-11-1993 in order to give an exclusive attention to the problems of minorities and to find solutions to them in a co-ordinated fashion . Andhra Pradesh State Minorities Finance Corporation. A.P.Minorities Commission, Andhra Pradesh State Wakf Board, and Andhra Pradesh Urdu Academy are under the administrative control of the department.

The Minorities Welfare Department has been implementing a number of plan schemes not only through the above institutions but also through a number of other specialised agencies for the multi-dimensional welfare of minorities. These schemes aim at promotion of entrepreneurship ( Under Anti-poverty and Self-Employment Programmes), provision of escort services to minority entrepreneurs, imparting of vocational skills to

women, improving class room performance of urdu medium school children, imparting of competitive examinations coaching, maintenance and protection of wakf institutions, promotion and development of Urdu language, etc.

A provision of Rs. 942.86 lakhs was made for Andhra Pradesh State Minorities Finance Corporation and for schemes of minorities welfare in the Eighth Plan against which the total expenditure upto 1995-96 worked out to Rs. 1014.54 lakhs.


The problem of under nutrition and malnutrition affects the health of children, pregnant and lactating mothers and particularly those coming from the poorer sections of the population. An amount of Rs. 58.72 crores has been approved under VIII plan for taking up various programmes and the expenditure upto the end of 1995-96 worked out to 66.63 crores.

A statement showing the VIII Plan approved outlay and the year wise expenditure incurred upto end of 1995-96 under Social Services Sector is given in Annexure XVI