AP govt presents Rs 2.24 lakh crore budget for FY 2020-21; over Rs 75,000 crore earmarked for welfare schemes

The Y S Jagan Mohan Reddy government in Andhra Pradesh will dole out a staggering sum of over Rs 75,000 crore in cash to different sections of society while the state's debt will further rise to Rs 3,48,998 crore in the 2020-21 financial year as projected in the state budget presented on Tuesday.

In 2019-20, the YSR Congress government distributed Rs 49,720 crore to various sections, taking the state debt to Rs 3.02 lakh crore from Rs 2,58,928 crore the previous year.

Touted as welfare schemes, each carries the name of either Chief Minister Jagan Mohan Reddy (Jagananna) or his late father Y S Rajasekhara Reddy (YSR).

Finance Minister Buggana Rajendranath on Tuesday presented a budget for Rs 2.24 lakh crore for the 2020-21 financial year, a decrease of 1.4 per cent over last year, with an estimated revenue deficit of Rs 18,434 crore and a fiscal deficit of a whopping Rs 48,295 crore, but harping mainly on the welfare theme.

The 1.4 per cent decrease in the budget estimates was on account of major economic slowdown during the Covid-19 pandemic, he said.

In addition to the direct money transfer schemes implemented in the last fiscal, at least seven others will be launched this year under the government's flagship "Navaratnalu" programme.

According to the figures revealed by the Finance Minister in the 2020-21 Budget, presented to the Legislature on Tuesday, a sum of Rs 37,659 crore will be spent under the head Direct Benefit Transfer for schemes like YSR Pension Kanuka, YSR Aasara, Jagananna Amma Vodi, Jagananna Vidya Deevena, YSR Kapu Nestham, YSR Jagananna Chedodu, Jagananna Thodu, YSR Cheyuta.

The same schemes, with a total outlay of Rs 37,618 crore, will also be implemented under various sub-components like SC, ST, BC, Minority and Kapu welfare for the respective communities, according to the Budget document.

This apart, Rs 3,615 crore will be distributed to farmers under the Rythu Bharosa scheme towards inputs and another Rs 1,100 crore towards interest-free farm loans.

For women members of self-help groups, in rural and urban areas, a sum of Rs 1,365 crore has been earmarked under the interest-free loan scheme.

"Our government abhors the habit of reckless spending (of the earlier TDP regime) and focuses on targeted and impactful interventions. It is our effort to implement programmes for the benefit of all groups to enable them to participate in the mainstream development process.

"Our government is committed to the welfare of all sections of society cutting across the lines of caste, religion, gender and vocation," the Finance Minister said in his Budget speech.

Similarly, upgradation of public health infrastructure, across rural and urban areas, was amongst the top priorities of the government, he added.

The state's debt burden increased to Rs 3.02 lakh crore at the end of March 2020,up from Rs 2,58,928a year ago.

In the 2020-21 fiscal, the state's debt is further estimated to shoot up to Rs 3,48,998 crore.

The state's revenue shortfall was a staggering Rs 68,000 crore as the revised estimates for 2019-20 showed receipts of only Rs 1.10 lakh crore as against the estimated Rs 1.78 lakh crore.

However, the Finance Minister projected a revenue of Rs 1.61 lakh crore in the 2020-21 fiscal.

He proposed an overall expenditure of Rs 2,24,789 crore during 2020-21, with revenue expenditure alone estimated at Rs 1,80,392 crore and capital expenditure, including loan repayments, at around Rs 44,396 crore.

Though an expenditure of Rs 2.27 lakh crore was estimated in the last fiscal, the state could eventually accomplish only Rs 1.74 lakh crore, a large chunk of which had gone towards payment of salaries and doling out freebies.

As per the revised estimate, revenue expenditure in 2019-20 was Rs 1,37,518 crore and capital expenditure Rs 12,845 crore.

The Revenue Deficit for 2019-20 thus stood at Rs 26,646 crore and the Fiscal Deficit at Rs 40,493 crore, amounting to 2.47 per cent and 3.75 per cent of the GSDP respectively.

"There is nothing more important to this government than the comprehensive development of AP and its positioning at the very top in terms of human development. It is the constant endeavour of our government to not just live up to the expectations of people but outgrow them by bridging the gulf between lost opportunities of the past and promises of the future," he added.