Debt-driven freebie schemes dominate Rs 2.56 lakh crore in Andhra Pradesh Budget

The Andhra pradesh  government on Friday presented a Budget for Rs 2.56 lakh crore for the 2022-23 fiscal and a projected revenue deficit of Rs 17,036 crore. Andhra Pradesh Finance Minister Buggana Rajendra Nath estimated the state’s revenue receipts, including an open market loan of Rs 55,000 crore, to be Rs 1,91,225 crore in the next financial year, though there was a shortfall of Rs 22,923 crore in income, as per the revised estimates for 2021-22.

Consequently, the overall expenditure in 2021-22 was Rs 21,672 crore less than the budgeted estimate, despite the state raising over Rs 55,000 crore in loans.
Significantly, the state saved Rs 8,217.88 crore on the freebie schemes this year, incurring an expenditure of only Rs 39,615.98 crore as against the budgeted Rs 48,083.92 crore. While the Rs 6,107 crore flagship Amma Vodi scheme was not implemented during the ongoing financial year, there was significant saving on schemes like Vasati Deevena (Rs 1,134.40 crore), Vidya Deevena (Rs 449.13 crore), social security pensions (Rs 247.55 crore), zero interest scheme for farmers (Rs 124.13 crore), the revised estimates presented by the Finance Minister showed.
The government, however, spent Rs 196 crore more on a couple of other freebie schemes like Aasara and EBC Nestham during the year.

For the freebie schemes, the Finance Minister earmarked Rs 48,802 crore in 2022-23, which is Rs 718 crore more than the current year’s allocation.
The schemes are directly driven by loans raised by the government from various sources.
The fiscal deficit in 2022-23 is expected to be Rs 48,724 crore even as the government intends to borrow Rs 55,000 crore.
The total public debt of the state is projected to shoot up to Rs 4,39,394.35 crore in 2022-23, up from Rs 3,90,670 crore as per the revised estimate for 2021-22.
This apart, the government stood guarantee for a sum of Rs 1,17,503 crore, borrowed by various state-run entities till December 31, 2021.
A sum of Rs 21,805 crore has been earmarked for debt servicing in the next fiscal..
Also, an outlay of Rs 43,052 crore has been made for the Agriculture and allied sectors for the coming year.

Agriculture Minister Kurasala Kannababu, who presented the outlay for his department said drones would be introduced in agriculture from 2022-23 to help farmers optimise the use of inputs like fertiliser, seed and water.
“With standardisation of technology, drones can be used for precision agriculture for crop scouting, like assessment of damage, soil health analysis, etc. We are taking up the programme with a target of 10,000 drones in a phased manner,” Kanna Babu said.
The Rs 200 crore project was expected to generate employment for 20,000 rural youth, who would be trained in drone piloting.
The state’s premier Acharya N G Ranga Agriculture University, which has been doing research on drones in agriculture, would provide technical support for the project, the Minister added.