Education and Welfare Highlighted in ₹2.94 Lakh-Cr Andhra Pradesh Budget

Andhra Pradesh Government Presents ₹2.94 Lakh Crore Budget for 2024-25

Amaravati, Andhra Pradesh: The Andhra Pradesh government, led by the Telugu Desam Party (TDP) in alliance with the National Democratic Alliance (NDA), presented its first comprehensive budget for the fiscal year 2024-25, totaling ₹2.94 lakh crore. This budget was unveiled by Finance Minister Payyavula Kesav in the state legislative assembly on Monday, marking a significant milestone for the government that assumed office five months ago.

Budget Overview:

The ₹2.94 lakh crore budget includes ₹2,35,916 crore allocated for revenue expenditure and ₹32,712 crore for capital expenditure. A portion of the budget, ₹25,798 crore, has been earmarked for public debt and loans. The budget reflects a 5.40% increase over the previous year’s budget of ₹2.79 lakh crore, signaling the government’s ambitious fiscal plans.

The budget also projects a revenue deficit of ₹34,743 crore and a fiscal deficit of ₹68,742 crore, representing 4.19% of the Gross State Domestic Product (GSDP) and 2.12% for the revenue deficit. These figures highlight the financial challenges the state is facing, though the government is optimistic about managing these deficits through enhanced revenue generation and targeted spending.

Key Allocations and Focus Areas:

Among the major allocations, the government has placed a significant emphasis on sectors that directly impact the welfare of the population. Some of the key spending areas include:

School Education: ₹29,909 crore has been allocated to improve the education infrastructure, enhance the quality of education, and increase accessibility to students across the state.
Panchayat Raj and Rural Development: ₹16,739 crore has been dedicated to strengthening local governance and improving rural infrastructure, benefiting the vast rural population of Andhra Pradesh.
Health and Welfare: With ₹18,421 crore allocated for health, the government aims to strengthen the healthcare system, particularly in rural areas, and improve the state’s ability to manage public health challenges.
Welfare for SC and OBC Communities: The government has allocated ₹18,497 crore for Scheduled Caste (SC) welfare and ₹39,007 crore for Other Backward Classes (OBC) welfare, demonstrating a focus on social equity and inclusion.

Critique of Previous Government:

Finance Minister Payyavula Kesav took the opportunity to criticize the previous administration, accusing it of mismanaging state finances. He highlighted concerns over the diversion of resources, unsustainable borrowing practices, and the depletion of revenues due to inappropriate policies. Kesav also criticized the previous government for taking loans at high-interest rates and misappropriating funds allocated for Centrally Sponsored Schemes. He stated that the state’s economy was on the verge of collapse and stressed the need for the current administration to rebuild Andhra Pradesh’s financial stability.

Fulfillment of Pre-Election Promises:

The government has also made good on several key promises made during the election campaign. These include:

Enhanced Monthly Pensions: The government has raised monthly pensions for eligible individuals, ranging from ₹4,000 to ₹15,000, as part of its social security initiatives.
Free Gas Cylinders: Under a new welfare scheme, eligible households will receive three free gas cylinders annually, reducing the financial burden on families.
Farmer Support: The Annadatha Sukhibhava-PMKISAN scheme is aimed at providing investment support to farmers, reinforcing the government’s commitment to the agricultural sector.
Free Bus Travel for Women: As part of its inclusive transport policy, the government has made provisions for free bus travel for women across the state.
Increased School Assistance: The government has ramped up support for education through the Thalliki Vandanam program, enhancing financial aid to schools and students.

Tax Revenue Projections:

For the upcoming fiscal year, the budget anticipates tax revenue of ₹1.60 lakh crore, which marks an increase from ₹1.31 lakh crore in the revised estimates for 2023-24. Additionally, non-tax revenue is expected to reach ₹10,576 crore, a significant increase compared to ₹7,432 crore in the previous year. However, the state anticipates a decrease in central grants and tax devolution, which are projected to be ₹34,701 crore, down from ₹46,834 crore in 2023-24.

No New Taxes:

The budget does not introduce any new taxes, which has been a point of relief for businesses and taxpayers. The government is aiming to raise revenue through better tax compliance, improved collection methods, and enhanced economic activity across various sectors.

Looking Ahead:

This ₹2.94 lakh crore budget represents the government’s bold plans to address both the immediate needs and long-term development goals for Andhra Pradesh. Despite the fiscal deficits, the government remains committed to driving progress, particularly in areas such as education, health, and social welfare. With a focus on inclusive growth, infrastructure development, and financial management, the state government hopes to stabilize its finances and create a more prosperous future for its citizens.