Jaganmohan govt's budget focuses on welfare, despite COVID-19 affected revenue shortfall

The Jaganmohan Reddy government has presented a budget of about Rs 2.25 lakh crore for 2020-21, with a major emphasis on the welfare schemes.

Several of chief minister Reddy’s pet projects like farm incentives, housing sites for the poor, full student fees reimbursement, were allocated generous funds.

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However, the 2020-21 budget estimates entail a 1.4 percent decline over 2019-20 “on account of the major economic slowdown because of the COVID-19 pandemic.”

The estimated Revenue Deficit is around Rs 18,434 crore, said Buggana Rajendranath, Andhra Pradesh finance minister who presented his second budget on Tuesday.

The state’s budget session could not be held earlier because of the COVID-19 incidence. The session began with COVID-19 screening and testing of the legislators and limited entry of everyone else including the press.

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The education sector is given importance with an allocation of Rs 22,604 crore for secondary and intermediate education and Rs 2,277 crore for higher education in 2020-21.

For the Manabadi Nadu-Nedu scheme under which 15,715 government schools are identified in the first phase to improve facilities, an allocation of Rs 3,000 crore is made.

Rs 11,419 crore is for the health sector in 2020-21.

“We are setting up 11,000 Dr YSR Health Clinics at village and ward levels. In a phased manner, 15 new Medical colleges will be set up across the state. Super specialty hospitals including those with focus on cancer care and kidney-related ailments will also be executed as part of the Nadu-Nedu scheme. All 1,145 PHCs, 195 CHCs, 28 Area Hospitals, 13 District Hospitals and 11 Teaching Hospitals will be refurbished, modernized and upgraded on a need basis under this scheme,” said Buggana.

For the Dr YSR Rythu Bharosa - PM Kisan scheme providing investment support of Rs 13,500 per year to farm families, including 1.58 lakh tenants, Rs 3,615.60 crore is given.

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Under Pedalandariki Illu, (housing for all the poor), the government intends to provide more than 30 lakh house sites at an outlay of Rs 8,000 crore and proposes to take up construction of 6.25 lakh houses during 2020-21, Buggana said.

Rs 16,000 crore is provided for the YSR Pensions for the old aged etc.

Rs 6,000 crore allocation for Jagananna Amma-Vodi, under which BPL family mothers sending kids to schools are given an incentive of Rs 15000.

For Jagananna Vidya Deevana providing full fee reimbursement for polytechnic, ITI, engineering, medical, degree and above level courses and Jagananna Vasathi Deevana to cover student’s food, hostel expenses, Rs 5,009 crore is the funding.