A soft tax-free budget for 1998-99 with a deficit of Rs 238.45 crore was presented by Andhra Pradesh finance minister P Ashok Gajapathiraju in the state assembly yesterday.
Laying emphasis on infrastructure, irrigation, tourism, social welfare sectors and implementation of Vision-2020, the minister, in a two-hour long budget speech, projected a revenue deficit of Rs 589.19 crore for the fiscal.
However, after taking into account overall transactions, there would be a net deficit of Rs 192.08 crore and with the opening negative balance of Rs 46.37 crore, the fiscal was expected to end with a total deficit of Rs 238.45 crore, he said.
The plan expenditure for 1998-99 was fixed at Rs 4,678.95 crore, an increase of 22.8 per cent over the outlay for 1997-98, while the non-plan expenditure was put at Rs 14, 945.22 crore.
There was no mention of the contentious power sector reforms in the budget, which earmarked 26 per cent each for social services and agriculture and irrigation out of the total plan outlay. The power and transport sectors were allocated 20 per cent and 10 per cent respectively, while rural and special area development programmes together would get about 14 per cent.
In sharp contrast to last years budget speech, which had attracted criticism for subscribing to the World Banks suggestions to improve the sagging state economy, yesterdays address was silent on the World Bank agenda.
The issue of public sector restructuring and privatisation, which has raised political controversy, found only a passing mention with the minister assuring the house that the government would be judicious and cautious in striking a balance between interests of workers and development.
Against the backdrop of electoral setbacks for the Telegu Desam Party in the recent Lok Sabha elections, the finance minister said, we intend to correct our weaknesses and reinforce our areas of strength both in terms of designing policies and their delivery.
The plan investment for the tourism sector was raised from Rs 1.20 crore in 1997-98 to Rs 45 crore for 1998-99.
