Budget Speech 2019-20

12th July 2019

Finance Department

Government of Andhra Pradesh

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Speech of

Sri Buggana Rajendranath

Minister for Finance

12th July 2019

Introductory Remarks

Hon’ble Speaker and Members,

With your permission, I rise to present the budget for the

financial year 2019-20 before this august House.

1. This is my maiden budget and I owe this opportunity to our Hon’ble Chief

Minister Sri Y S Jagan Mohan Reddy garu for giving me this rare

privilege. I am deeply grateful to the Hon’ble Chief Minister Sir, to the

Speaker and to the House.

2. I also wish to thank the 5 crore people of our State who gave our Hon’ble

Chief Minister Sri Y S Jagan Mohan Reddy garu, a historic mandate to

alter the status quo. Some people have proposed various theories to

explain this mandate and some people are still looking for explanations.

As stated by our Hon’ble Chief Minister, I believe this mandate can be

broadly attributed to predominantly two factors – trust and credibility i.e.

nammakam and viswasaneeyatha.

3. I recall the words of Mahatma Gandhi, who dreamt of India in which,

“Every poor man in this country should understand that there is a role even

for him in building this nation. Everyone should be able to live in fraternity,

without economic, social and political disparities.”

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Hon’ble Speaker Sir, I humbly submit to this House through you that

the Budget I am presenting for this financial year is the first step towards

the direction of achieving the noble objective of the Mahatma. At this

juncture, we should also remind ourselves that the father of our nation,

Gandhiji said,

“I do not yield to anything except the truth. There is no other God for me to

worship, except the truth”

He went on to propound that people should refrain from committing

seven sins. One of these sins is “Politics without Principles”. In other

words, politics lacking credibility. In the last 43 days of our Government,

our Hon’ble Chief Minister has constantly espoused for and restored

politics with principles back to the governance and development of our

state. These principles also provide us an indication of how a decisive

change is starting to take place as demanded by our people.

4. Political parties using their manifesto document only to win elections and

later ignoring it, is immoral. Setting a precedent, our Hon’ble Chief

Minister, in his inaugural address, has declared that our party manifesto

is equivalent to a sacrosanct text. Our manifesto is not meant to serve as a

mere advertising brochure, but it is the operating manual for our

Government. This is the cardinal principle on which our Government

stands.

5. Through the Budget, our Government is also taking steps towards

Swarajya, with a strong commitment to welfare of the people and to wipe

away their tears. This Government, under the able leadership of Hon’ble

Chief Minister Sri Y S Jaganmohan Reddy garu, has a clear vision and

actionable plans to deliver on the promises made to the people. This

Government believes that, being an agrarian State, farmers must have the

confidence that the Government is standing behind them, every family

must have assurance that their children will be educated, youth must have

the confidence that there will be jobs for them. This vision is manifest in

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our comprehensive welfare agenda, the Navaratnalu, which I will

elaborate in detail. In addition, our Hon’ble Chief Minister’s vision for the

State is:

To bring the waters of Godavari river to Srisailam, provide water to Rayalseema region and stabilize the Krishna ayacut.

Provide piped drinking water to every village and household.

Set up sewage treatment plants and solid waste management systems in every urban habitation.

To complete the major irrigation projects like Polavaram, Vamsadhara, Galeru Nagari, Handri Niva, Veligonda and other important projects, especially those in Uttar Andhra.

Achieve Special Category Status for Andhra Pradesh.

Implementation of monorail project in Visakhapatnam.

Change the base of public transport system from fossil fuels to electricity mode in a phased manner starting from urban areas,

thereby ensuring that public transport in our State is environmentally sustainable

Construction and operationalization of Kadapa Steel Plant.

Ensure pollution control and environment protection for providing a clean and conducive environment for healthy living.

I am proud to be part of a Government led by a leader who does not

believe in discrimination based on political affiliation. Our Hon’ble Chief

Minister has instructed all officials to provide all the programs in our

manifesto to all people on a saturation approach, disregarding their

political affiliation. I request the Hon’ble Members of this House as well

as the people of Andhra Pradesh to note this deep contrast with the earlier

regime which set up Janmabhoomi committees to deprive people of their

entitlements based on caste and their political affiliation, thereby officially

violating the genuine right of the people to equal opportunity.

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6. The third principle is transparency. This Government is committed to

being transparent in all work contracts. Our Hon’ble Chief Minister has

already instructed all Collectors to provide their orders online for

everyone to see, in the lines of Government Orders at the state level.

7. The fourth principle which our leader brought forward in decisive change

to the earlier Government is corruption free Governance. Hon’ble Chief

Minister has mandated both the Ministers as well as officials to ensure that

the state is corruption free at all levels and in all offices. In a clear contrast

to the earlier Government that asked officials to cooperate with political

leaders regardless of the legality of their activities, our Hon’ble Chief

Minister told all the Secretaries and Collectors that they should cooperate

with political representatives only as long as the requests are legal and

above board. As tendering of works usually is a significant source of

corruption, our Government is setting up a Judicial Commission to stymie

corruption in work contracts and irrigation projects including Polavaram

project.

Economy and Financial Position

8. Despite the huge investments claimed to be made in the last five years by

the previous Government, we witness severe farm distress, lack of jobs for

the youth, poor infrastructure, inadequate assistance for the poor, etc. This

exhibits that the actions taken by the previous Government did not address

the genuine needs of the State. There was a glaring disconnect between

hype & the ground reality & the growth of the State has not taken place

as is claimed. We were told that over the past five years, the economy grew

in double digits. We are still ascertaining if these growth figures are real or

hypothetical. Regardless, if the economy grew at double digit growth rate,

how is it that the annnadata are starving, the akka-cheelilu are unhappy,

and the yuvatha are discontent, so much so as to overwhelmingly &

decisively vote for change. This means that if the economy did indeed

grow at a double digit growth rate, it was a skewed growth which made

the rich richer and the poor more poor, growth which concentrated

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resources in the hand of a few & caused deprivation to the majority,

growth which is “jobless ” & “income less ”, growth in which valuable

resources were squandered on luxuries, growth which fueled anger among

the poor & the disadvantaged. In an age of rising inequality, such a trend

should be immediately arrested. Through this Budget, the Government

seeks to move away from such “income less ” & thereby “meaningless”

growth and usher in “household income-based growth and development”

for the common man & woman.

9. In terms of financial position, I wish to inform our Hon’ble Members and

our people that this Government has inherited probably one of the worst

financial positions ever inherited in the history of our country. The debt of

the residuary state at the time of bifurcation at Rs. 1,30,654 crore (Rs

97,124 crore of Public Debt & Rs. 33,530 crore of Public Account) has

reached a whopping Rs. 2,58,928 crore (Rs. 1,92,820 crore of Public Debt

& Rs. 66,108 crore of Public Account) by 2018-19. Furthermore, an

amount of around Rs. 10,000 crore was borrowed through various

corporations and diverted for spending by Government. In addition,

around Rs. 18,000 crore worth bills were kept pending.

10. With all these liabilities, as soon as we came into Government, we were

told that there is a resource gap of around Rs. 45,000 crore to fulfill the

commitments under Budget 2019-20 Vote on Account presented in

February. This resource gap is further amplified by the budget necessary

for our new programs, which this Government has promised to the people.

This is the unique financial position that this Government inherited.

Special Category Status

11. In this context, the demand for Special Category Status gains

significance. Our Hon’ble Chief Minister has stressed in various meetings

with the Hon’ble Prime Minister of India, the unique aspects of AP

bifurcation. First, Andhra Pradesh is the only state that was bifurcated

after a region with the capital demanded a separate state. Second, the

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Andhra Pradesh Reorganisation Act, 2014 was passed only after Special

Category Status was promised and this was not the case with any other

bifurcation. Third, Andhra Pradesh is the only state, which is demanding

Special Category Status for reasons beyond its control, as bifurcation has

severely deteriorated the finances of the state. The per capita state’s own

revenue immediately post bifurcation fell down for Andhra Pradesh to

around 60 paise for every Re. 1 for Telangana, while per capita revenue

expenditure matched that of Telangana in the years following bifurcation.

Fourth, Andhra Pradesh is the only state whose Special Category Status

is approved by the Cabinet of Government of India but is pending for

implementation.

12. Speaker Sir, you are aware that a country is more than its set of people,

natural assets and written legislation. The values, traditions and ideas also

form an integral part of any nation. A tradition rooted in our great Indian

civilization is that the elders of the local community ensure that partition

of ancestral property between children is just and fair. It is with the same

spirit that the founders of our Constitution gave the responsibility to

bifurcate states to the Parliament. It is within this process of achieving

fairness that Special Category Status was assured to the state of Andhra

Pradesh by the then Hon’ble Prime Minister along with various other

supportive provisions in the AP Reorganization Act, 2014.

13. Therefore, through this august House, I am appealing to the Hon’ble

Prime Minister and Government of India that Andhra Pradesh be given

Special Category Status. This is not only because the elders of our

democracy, the Parliament, assured the state in the spirit of fairness, but

also because Andhra Pradesh with its entrepreneurial people has the

potential to be one of the leading states in the transformation to New India

2022, if adequately supported. Merely because, some text is not present in

the legislation, does not render away the assurances given infructuous as

per the rich traditions of our civilization. This is more so, because the

amendments proposed by Members of Parliament have been dropped only

after the assurances provided to Andhra Pradesh.

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14. Speaker Sir, the culture of Indian family system is also widely respected

globally. In our great nation, the parents never renege on their promises to

children, while the reverse may sometimes be true. Parliament has given

us birth and we appeal earnestly to grant us Special Category Status as per

its assurance.

15. Article 3 of the Indian Constitution, empowering the Parliament is

introduced to ensure that all the emerging aspirations of our extremely

diverse nation are adequately represented. The bifurcation of Andhra

Pradesh will certainly be not the last bifurcation. In the interest of

preserving the rich traditions of our great civilization as well as our

robustness as a democracy, it is imperative for Parliament and the Union

Government to implement the assurances given to a state during

bifurcation, so as to set the right precedent for the future.

Hard Choices

16. While the Hon’ble Chief Minister and this Government continue to

strive to get Special Category Status, we need to spend within our means.

The fiscal position this Government inherited has compelled us to make

some very hard choices.

17. In this context, it is important to note that our Government is bestowed

with the opportunity of celebrating India’s 75th year of independence in

2022. This also comes with enormous responsibility, in terms of deciding,

at what point in the developmental trajectory should our state be in 2022.

In addressing this question, we were guided by the words of our Mahatma

again, whose 150th birth anniversary we will be celebrating this year.

“I will give you a talisman. Whenever you are in doubt, or when the self

becomes too much with you, apply the following test. Recall the face of the

poorest and the weakest man whom you may have seen, and ask yourself, if the

step you contemplate is going to be of any use to him. Will he gain anything by

it? Will it restore him to a control over his own life and destiny? In other words,

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will it lead to Swaraj for the hungry and spiritually starving millions? Then you

will find your doubts and yourself melt away.”

– Mahatma Gandhi

18. Guided by the words of Mahatma, this Government would like to see

the state free from deprivation by 2022. Therefore, while making

extremely hard choices between wealth creation and welfare programs,

the Government tried to balance both with a bias towards welfare. It is in

this spirit that when the Government was faced with a choice, whether to

provide viability gap funding to international flights to Singapore or

alternately provide better nutrition to thousands of mothers and children,

the Government chose to forgo the former. Our conscience and choices

are crystal clear.

19. In this Budget, the Government has prioritized the assurances in our

manifesto, with greater emphasis on “Navaratnalu”. We should not forget

how this manifesto is formulated. This document is essentially the

collation of expressions of genuine needs of the people of Andhra Pradesh,

as observed by our Hon’ble Chief Minister personally during his 3,648 km

padayatra spanning over 14 months and meeting around 2 crore people,

mostly the poor.

20. With this background, I will now, move to presenting my budget

proposals. Traditionally, in the Budget Speeches, there are details of

provisions for most schemes and all departments. In my speech, I will be

focusing predominantly on new schemes that this Government has

introduced and those schemes to which substantially enhanced budget has

been allocated. The details of the department-wise budgetary allocations

and major/new schemes is provided as annexure to this speech.

YSR Rythu Bharosa

21. Hon’ble Members are aware that farmers have been the first priority of

Dr Y S Rajasekhara Reddy garu. Therefore, the Government declared his

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birthday, July 8th, as Rythu Dinotsavam. This day is meant to take stock

of farm issues, provision of various Government programs, address any

bottlenecks in service delivery and providing extension support, etc.

22. This Government’s main priority is farmers’ welfare. In line with this,

the Government has set up an Agriculture Commission, chaired by

Hon’ble Chief Minister, which will periodically take progress of farm

incomes, their issues and necessary measures that need to be put in place

to promote farmers’ welfare.

Yatha Beejam Vinakshetram

Muptham Bhavathi Nishphalam

This means,

How much ever fertile the land may be, how much ever better it is tilled,

or how much ever skillful the farmer may be, there is no crop without seed.

23. YSR Ryuthu Bharosa: In our manifesto, we proposed that every

farmer will be provided an investment support of Rs. 12,500 every year in

the month of May before the cropping season begins. Given that our

Hon’ble Chief Minister took an oath at the end of May and the deplorable

fiscal position the Government inherited, I am sure most people would

have understood if the Government decided to provide this amount from

May 2020. However, our Chief Minister, true to his utmost commitment

to farmers’ welfare, decided to provide this amount to all farmers,

including tenant farmers, on 15th October 2019 itself. The Farm

Investment Support component of the YSR Ryuthu Bharosa scheme will

benefit 64.06 lakh farmers, which includes 15.36 lakh tenant farmers with

a proposed outlay of Rs. 8,750 crore. I am proud to say that this

Government is the first one to recognize the eligibility of tenants for

investment support.

24. YSR Interest Free Loan: To decrease the cost of credit to farmers, this

Government will be implementing YSR interest free loan for farmers,

including to the tenants. I propose a token provision of Rs. 100 crore in

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this budget, as the anticipated payment of around Rs 2,163 crore will arise

in the 1st quarter of the next financial year.

Crop is the life for the farmer- the farmer cannot sustain if there is

no crop.

Weather is the life for the crop- the crop cannot sustain if there is

no favorable weather.

Therefore, for well-being & confidence of the farmer, insurance of

the crop is a must.

25. YSR Crop Insurance/YSR PM Fasal Bima Yojana: In continuation

with this theme of farmers’ welfare, the Government decided to pay the

current share of farmers’ crop insurance relieving them of any burden in

crop insurance. I propose to allocate a budget of Rs. 1,163 crore,

benefitting 60.02 lakh farmers.

26. This Government believes that we should explore every avenue to

enhance farm incomes. Therefore, the Government is giving due

importance to rearing of cattle by providing insurance to cattle at the rate

of Rs. 15,000 for local cattle and Rs. 30,000 for hybrid cattle. For this

purpose, I propose an allocation of Rs. 50 crore, which will cover

20,00,000 cattle.

27. At a policy level, to achieve the objective of doubling farm incomes by

2022, the Government is committed to taking all steps – a) providing

investment support, b) reducing cost of inputs like credit, insurance,

irrigation, cold storage, etc. c) enhancing incomes through e-NAM,

provision of storage capacity to prevent distress sales d) mitigating risk

through Price Stabilisation Fund, Natural Calamity Fund and e) providing

support in case of farmer suicides and accidental death.

28. As part of Rythu Bharosa, this Government has promised to drill bore-

wells free of cost & a provision of Rs. 200 crore is proposed in this year.

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29. Availability of motorised transport plays a very important part in

moving agricultural produce and other goods as well as efficiently carrying

out farm operations. To reduce the financial burden on farmers for using

tractors, the Government intends to extend the road & toll tax exemption

for tractors.

30. This Government, to ensure that our farmers get access to quality

inputs, to increase their productivity & also to protect them from

unscrupulous traders, will establish Y.S.R. Agri Labs with Soil, Seed,

Fertiliser & Pesticide testing facilities & for which I propose to allocate an

amount of Rs. 109.28 crore in the budget.

31. Farm Income Enhancement: To ensure better remunerative price to

farmers, our Government will speed up implementation of e-NAM. We

will also take steps for the phased implementation of 100% online payment

to farmers. We will also take up development of 13 cold storages, 24

godowns so that farmers have the flexibility for storage during days when

the prices are low and sell during days when the prices are high. We will

also take up 17 Rythu Bazaars so that they can directly sell their produce

and reap better profits. I propose an allocation of Rs. 200 crore for

development of Cold Storages and Warehouses.

32. Farm Risk Mitigation: This Government is very sensitive to the

enormous risk borne by farmers, particularly due to price fluctuations and

natural calamities. Therefore, I propose to set up a Price Stabilization

Fund with a corpus of Rs. 3,000 crore to enable market intervention in

both agriculture and horticultural crops to ensure just price to farmers.

This is three times the previous budgeted amount of Rs. 1,000 crore. This

will cover not only the crops that have a declared Minimum Support Price

(MSP), but also other non-MSP crops in the state. I am proud to inform

that our State will be the first to offer such support to farmers. Similarly, I

propose to set up a Natural Calamities Fund of Rs. 2,000 crore which will

help farmers in case of losses incurred due to climatic vagaries. Of this, I

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propose to allocate an amount of Rs 150 crore for the victims of the Titli

cyclone.

33. Tenants Welfare: The main issue obstructing the welfare of tenants is

their official recognition. Farmland owners are not coming forward to

officially recognize tenants because they are afraid that they may lose their

land in a legal challenge. To assuage the fears of farm land owners as well

as to make sure that tenants receive all farm support programs, this

Government will bring in necessary legislative amendments. The

Government will create an enabling legal mechanism for tenant farmers

to have crop related rights for a period of 11 months with all attendant

subsidies and benefits from various programs including crop insurance,

sunna vaddi, free power, remunerative price guarantee, support in case of

suicide and accidental death, etc., while safeguarding the rights of

landowners.

34. To enhance the income of dairy farmers, I propose to revive the dairy

cooperatives this year with a budget of Rs. 100 crore. Post revival, from

next year, these cooperatives will buy milk directly from farmers, giving

them a bonus of Rs. 4 per litre, thereby significantly enhancing the

incomes of dairy farmers. Further, it is also proposed to initiate the

necessary steps for revival of the Cooperative Sugar Factories and for

which a proposed provision of Rs 100 crores is made in the budget.

35. The fishermen lose their incomes due to fishing ban period imposed by

the Government. To alleviate their losses, this Government will enhance

the support given to fishermen from Rs. 4,000 to Rs. 10,000. This year,

after proper enumeration to ensure saturation, the Government will

disburse the same in January, 2020. For this purpose & for providing diesel

subsidy for fishermen, I propose to allocate Rs. 200 crore to benefit

1,17,053 fishermen families. Furthermore, this Government will provide

electricity to aqua farmers at Rs. 1.5 per unit instead of the Rs. 2 per unit

with a proposed outlay of Rs. 475 crore.

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36. Similarly, for providing infrastructure facilities for our fisherfolk, the

Government intends to develop fishing jetties at Uppada in East

Godavari, Juvvaladinne in Nellore district, Vadarevu in Prakasam district

& Nizampatnam in Guntur district, for which I propose to allocate an

amount of Rs. 100 crore.

37. Suicide and Accidental Death: This Government is sensitive to the

fact that despite the toil of our farmers & support rendered by the

Government through various programs, there are instances of farmer

suicides. Adding to the agony is the fact that of the 1,513 cases of farmer

suicide, only 391 have been declared as being relating to agricultural

distress. This Government will examine paying ex-gratia to the remaining

1,122 cases after establishing the veracity of the claims. The Government

is committed to ensuring that there is no farm suicide at all. However, in

such eventualities, the Government will provide Rs. 7 lakh to ease their

financial distress of the kin of such farmers On similar lines, Rs. 10 lakh

will be provided to the kin of fisherman family. At the same time, the

Government is committed to ensuring that this support is only provided

to the family and not to the moneylenders and we will take necessary

legislative/policy measures to ensure that.

Ammavodi and Education

When there are three pieces of bread,

And there are four to eat,

Mother is the only person who says, “I am not hungry”.

The education system which has no role for mother,

Is just like a temple without idol!

The eyelid knows to protect the eye,

The bird knows to protect its eggs,

The mother only knows to educate her children well!

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Pakshigaam Balamaakaasam

Matsyaanaam Udakam Balam

This means:

For the birds, the sky is their strength,

For the fish, the water is their strength,

For the children…?

Ammavodi is going to be the strength.

38. The mothers in our State are committed to educate their children well,

whatever the hardships they may face to build new lives for their children.

The inspiration of those mothers is the strength for this Government. This

Government heartily salutes every mother who wishes to give a better

future to her children by sending them to school. This Government

declares that it is our responsibility to render support and provide

necessary resources to strengthen their commitment.

Education is …

Maatheva Rakashithi

Pithave Hithe Niyunkthe…

Which means:

Protect like a mother

Do good like a father

39. As per census 2011, the illiteracy rate in Andhra Pradesh is 33 %

against the national rate of 27%. The illiteracy among women in Andhra

Pradesh is high at 40 % whereas the national rate is 35 %. Our Hon’ble

Chief Minister constantly reminds us that the best asset that can be

provided to children is quality education. Every rupee spent on education

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is a contribution towards Human Capital Development. Therefore, this

Government is committed to ensuring that no mother belonging to a poor

household worries about the education of her children. This Government

is the first in the country to provide incentives to the mother to educate

her children. Speaker Sir, the Hon’ble Chief Minister is of the view that

“No child shall be left behind” in his quest to drink from the fountain of

knowledge due to lack of resources & keeping in view his commitment to

this cause, I take great pride in announcing the scheme of Jagananna-

Ammavodi. The Government will provide Rs. 15,000 to every mother

who sends her children to school. Initially, this scheme was envisaged to

cover children from Classes I to X. Now, the coverage of the scheme has

been expanded to include students till Intermediate. The previous

Government had introduced Mid-Day Meal program for intermediate

students only six months prior to elections. This Government is giving Rs.

15,000 under Jagananna Ammavodi right from the first year of

Government. With a proposed budget allocation of Rs. 6,455 crore,

benefitting around 43 lakh mothers, this scheme will substantially improve

all the parameters relating to education in the State.

40. This Government is committed to improving the state of affairs of

Government schools by substantially upgrading the quality of

infrastructure and the education imparted. Our Hon’ble Chief Minister

has instructed us to ensure that all schools improve their infrastructural

standards and we will be held accountable by showing to the public the

photographs of schools now and two years later. Government schools will

be completely revamped to make them at par with good corporate schools.

Accordingly, the Government is embarking on a massive school

infrastructure modernization program and this year, I propose to allocate

Rs. 1,500 crore. The Government will introduce English medium in all

schools. The purpose of this measure is to make our children confident

and competent when they have to move for jobs not only within the State,

but also throughout the country and internationally. At the same time,

with the objective of safeguarding the importance of Telugu language, we

will make Telugu subject compulsory. This Government will constitute a

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Regulatory and Monitoring Commission to control and regulate the fees,

improve the quality of education and safeguard the wellbeing of teachers

in private educational institutions. This Commission shall report directly

to the Hon’ble Chief Minister.

41. The Midday meals program is now widely recognized as one of the

most effective developmental programs in the country in furthering both

educational as well as nutritional outcomes. The Government is

committed to improving the quality of the food served under the scheme.

Further, the honorarium for the cook cum helper is increased from Rs.

1,000 to Rs. 3,000 per month. I propose to allocate Rs. 1,077 crore for this

purpose.

42. This Government is also conscious of the hardship faced by the

students in funding their higher education. To ease the burden on the

parents of the students in the Post-Matric courses, this Government will

provide 100 % fee reimbursement to the students belonging to the SC, ST,

BC, Minorities, Kapu, EBC and Differently Abled categories by

implementing the Jagananna Vidya Deevena scheme. This scheme will

also provide maintenance support to the students @ Rs 20,000 per child

per year to defray the other expenses like food, travel, hostels, books, etc.,

which imposes a significant burden on the families. I propose to allocate

Rs. 4,962.3 crore for this purpose, benefitting around 15.5 lakh students.

43. The Government has redesigned the engineering curriculum as per the

recommendations of the High-Power Committee of experts suggested by

the All India Council for Technical Education. As a result, the courses

offered in engineering and degree colleges are aligned with the skill set

requirements of industry. Students will be better equipped now to secure

jobs. The upgraded curriculum will be implemented in all State

Universities and affiliated colleges from the academic year 2019-20. On

similar lines, the Government will also provide complete support to

technical colleges for upgrading the courses and improving the quality of

education. By doing so, the Government will enhance the supply of skilled

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technical manpower through polytechnic education to cater to the needs

of industry.

Arogyasri

44. At this juncture, we should remind ourselves of the lasting

contributions of our former Chief Minister Dr. Y S Rajasekhara Reddy

garu. Arogyasri, 108 and 104 have been his gifts not only to the state, but

also to the country. Many States started emulating these programs after

they were initiated in Andhra Pradesh. These programs need to be re-

invigorated to fulfill their original objectives.

45. Dr. Y S Rajasekhara Reddy garu started Arogyasri with an objective

that every poor family should be able to afford best-in-class treatment

amongst Government and corporate hospitals. Globally, there is enough

evidence to suggest that health expenditures are the primary reason for

people falling back into poverty. Therefore, it is appropriate to say that Dr.

YSR garu saved a lot of families from falling into poverty.

46. This Government wants to ensure that these programs regain their

erstwhile sheen. Accordingly, it intends to expand Arogyasri coverage to

i) all the households with annual income less than Rs. 5 lakh per annum

thereby effectively covering the middle-class families with an income of

Rs. 40,000 per month ii) all the cases where the medical expenses cross

Rs. 1,000, and iii) provide treatment in all cases without any limit on cost

of treatment. The Government will empanel good hospitals in cities like

Bangalore, Hyderabad, Chennai, etc. beyond the State for the benefit of

people in border districts. All types of ailments and surgeries will be

covered under Arogyasri. This will expand the coverage of Arogyasri by

another 5 lakh. I propose to allocate Rs. 1,740 crore for this program.

47. We know that the first crucial hours during an emergency decide the

fate of a patient. The 108 program has been instituted precisely to save

such patients by drastically reducing the time required to reach a hospital.

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Our Hon’ble Chief Minister has mandated that every Mandal should have

a 108 to cover every nook and corner of the state and an ambulance should

be able to reach a patient within 20 minutes. Accordingly, the

Government proposes to procure 432 additional ambulances, with a total

programmatic proposed outlay of Rs. 143.38 crore.

48. The 104 program was instituted with a view to provide quality, primary

health care services through Medical Officers at village level. Our

Government wants to saturate the coverage of this program as well.

Accordingly, the Government proposes to procure 676 additional vehicles

& improve the quality of service delivery, with a total proposed

programmatic outlay of Rs. 179.76 crore.

49. This Government is committed to transforming the condition of our

Government Hospitals and to place them at par with the best corporate

hospitals within a span of 2 years. Accordingly, we have formulated a

transformation plan and I propose to allocate Rs. 1,500 crore for this

purpose.

50. This Government lays special emphasis on the health of tribal

population, for whom Government hospitals are the primary, if not only,

source of medical services. Therefore, the Government proposes to set up

a Tribal Medical College in Araku , with an initial proposed outlay of

Rs.66 crore for this year. Additionally, the Government plans to set up

two medical colleges at Gurazala to serve the Palnadu area and at

Vizianagaram to serve UttarAndhra with an initial proposed budget of Rs.

66 crore each, and a Kidney Research Centre & Super Speciality Hospital

at Palasa, Srikakulam district, with a proposed outlay of Rs. 50 crore.

51. This Government is focusing specifically on Maternal and Child

Health. The Maternal Mortality Rate (MMR) of the state is currently at

74 and the Government is targeting to reduce it to 55 by the end of 2019-

20. Similarly, we intend to reduce Infant Mortality Rate (IMR) from 32

19

to 22. The Government also seeks to ensure that 100 % of the deliveries

are institutional deliveries by the end of this year.

YSR Housing Scheme

Birds have nests,

Animals have caves to live in,

Even a small ant has an anthill,

But only man has no abode.

And that too, poor people

struggle throughout their life to own a small house.

52. This Government intends to construct 25 lakh houses in the next 5

years commencing from the next year. This year, house sites will be

distributed. Work has begun to identify appropriate land parcels and if

required, private lands will be taken. The previous Government, in the last

five years, could complete only 91,119 houses in urban areas and

7,04,916 houses in rural areas. To show our commitment to the housing

program, our Hon’ble Chief Minister has already mandated us to ensure

that 25 lakh house pattas are distributed to house less population on

Ugadi, the 25th of March 2020. The title will be given in the name of the

female family member. Further, the poor will be able to mortgage the

houses built on these sites, for their needs in the future. I propose to

allocate Rs. 8,615 crore for this program.

53. As promised in the manifesto, this Government will waive off the debt

burden of the beneficiaries of the urban housing program in respect of

houses upto 300 square feet.

Governance at Doorstep through Yuvatha and Upadhi

54. By 2022, when India is reaching its 75th year of independence, we

should not have a situation prevailing, where a citizen has to repeatedly

visit Government offices for availing various programs. Our Hon’ble Chief

Minister wants to usher in a regime where citizens come to feel that door

20

step delivery of all Government programs as well as redressal of their

grievances is their entitlement. To achieve this objective, our Government

is implementing the Grama/Ward Volunteers program which will engage

the services of around 2,00,000 public spirited youth volunteers in the rural

areas and around 81,000 in the urban areas. Providing services to a cluster

of 50-100 houses, this program will be launched from 15th August,2019

providing a single point of delivery.

55. In the same spirit, this Government for further bringing the governance

& the entire service delivery mechanism closer to the households seeks to

establish Village Secretariat for around 2,000 population creating around

10 jobs and Ward Secretariat for around 5,000 population creating around

5 jobs in each Secretariat. This is expected to create around 1,00,000 new

jobs in the Village Secretariats and around 18,000 new jobs in the Ward

Secretariat. This program will be launched from October 2nd 2019, the

150th birth anniversary of Mahatma Gandhiji. This will be a tribute to the

lasting influence Gandhiji continues to have on our nation and the world

at large.

Civil Supplies

56. Everyone who has purchased commodities under the Public

Distribution System is aware that this system is plagued with issues like

under-weighment, low quality and inedible commodities, massive

leakages and commodities being recycled into the open market. To ensure

that these issues are addressed once and for all, our Government is

introducing a door delivery system. All commodities will be of good

quality, the broken rice grains will be screened and removed and superior

quality rice will be packaged and supplied at the door step by

Village/Ward volunteers. This will not only provide an assured quantity

of commodities, but also ensure that the quality is checked at the source

by packaging through SORTEX and other grading mechanisms. I propose

to allocate Rs. 3,750 crore for this program.

21

Women Welfare

Dr. Babasaheb Ambedkar had said,

“I measure the progress of a community by the degree of progress which women

have achieved.”

57. The elevation of woman lies in her determination. While some are

saddled with hurdles, losses and pains in life, some use the fire to come

out of problems they face as a fuel to reach the sky. This Government

believes that sustainable and inclusive Governance can only be achieved

through women led development. In this pursuit, the Government is

implementing YSR Sunnavaddi Pathakam for Self Help Groups in Rural

and Urban Areas. This subvention will effectively reduce the cost of credit

& boost repayment, thereby benefitting lakhs of women in undertaking

productive income generation activities. This is expected to benefit

6,32,254 Rural SHGs and 1,66,727 Urban SHGs, and I propose a

budgetary outlay of Rs. 1,140 crore.

Scheduled Caste and Scheduled Tribe Sub Plan

58. Speaker Sir, the Schedule Castes & Scheduled Tribes have reposed their

full trust & confidence in this Government. We are thankful to them for

their unflinching support & we promise that we will live upto their high

expectations.

59. This Government will implement SC & ST Component in a

transparent manner. This Government will establish new Corporations for

Scheduled Castes, viz., Mala Community, Madiga Community, Relli and

other communities. Under the Scheduled Castes Component, this

Government have allocated an amount of Rs 15,000.86 crore for the

welfare & development of the Scheduled Castes and similarly under the

Scheduled Tribes Component allocated an amount of Rs 4,988.53 crore.

This Government will ensure that the aspirations of our SC & ST brethren

are met and the gaps in development are effectively bridged.

22

60. In accordance with the representation received by the Hon’ble Chief

Minister in the padyatra, the number of free electricity units to Scheduled

Castes and Scheduled Tribes is proposed to be enhanced from 100 to 200

units in the budget, duly allocating of Rs 348.65 crore for 15.62 lakh SC

households & Rs.81.70 crore for 4.78 lakh Scheduled Tribe households.

61. To promote higher education amongst the Scheduled Tribes, I propose

to allocate Rs. 50 crore for development of Dr. Y.S.R Tribal University.

Backward Classes Welfare

62. This Government is committed to ensure holistic development of

Backward Classes. For this, as promised in the manifesto, the

Government has allocated an amount of Rs. 15,061 crore towards the

activities for welfare & development of BCs. The Government is also

taking action for restructuring the BC Commission for making it more

effective.

63. This Government is proposing to introduce income support to Barbers

and Dhobis to an extent of Rs. 10,000 per year. This will help them to

modernize their machinery and earn enhanced incomes. This initiative is

expected to benefit around 23,000 Barbers and around 1,92,000 Dhobis at

an outlay of Rs. 200 crore. This Government is also proposing to introduce

income support of Rs. 10,000 per year to Tailors with an allocation of Rs.

100 crore.

64. This Government is also committed to provide Rs. 24,000 to every

weaver family. This will help them to modernize their equipment and

compete with products from the powerlooms sector. The Government will

also provide necessary marketing assistance and other subsidies to help

weavers earn decent incomes. An amount of Rs. 200 crore is proposed to

be allocated in the budget for this purpose.

23

65. As promised in the manifesto, the Government will establish separate

corporations for the Backward Classes. These Corporations will support

the development of people belonging to various BC sub communities. The

existing corporations will be revamped to introduce transparency and

accountability. After detailed enumeration, the YSR Cheyutha scheme

will take off next year through these corporations.

Minority Welfare

66. This Government will conduct a survey of movable and immovable

properties of the Wakf board and digitise the immovable property records

to ensure that such properties are used for the betterment of the people

belonging to the minority community.

67. The honorarium to Imams is proposed to be enhanced to Rs 10,000 per

month and of Mouzzans to Rs. 5,000 per month. Similarly, it is proposed

to provide Pastors with an honorarium Rs. 5,000 per month.

68. An amount of Rs 2,106 crore is proposed to be provided for the welfare

and development of the Minorities under the various schemes included in

the budget.

69. For the political upliftment for BC, SC, ST and Minority communities,

this Government is proposing to bring a Bill to provide 50% reservation in

respect all nominated posts such as Temple Trust Boards, Marketyard

Committees, Corporations, etc. For their economic elevation, there would

be 50% reservation in all nominated and contract works.

Kapu Welfare

70. As promised in the manifesto, for the welfare of Kapu community, I

propose an allocation of Rs. 2,000 crore for the welfare and development

of the Kapu community.

24

Brahmin Welfare

71. I propose to allocate an amount of Rs 100 crore to the Brahmin

Corporation for the welfare of brahmins. Further, there are many Hindu

temples with insufficient funds to maintain the temples. I propose to

allocate Rs 234 crore to provide Dhoopa Deepa Nayvaidhyam with Rs

30,000 for every panchayat with a population upto 2,000, Rs. 60,000 for

every panchayat with population upto 5,000, Rs. 90,000 for every

panchayat with population upto 10,000, and Rs. 1,20,000 for every

panchayat with population more than 10,000.

YSR Bima

72. Under the YSR Bima scheme, the Government proposes to provide a

sum of Rs. 1,00,000 to the family in case of natural death of any individual

between the age 18 to 60 years. In case of accidental death of a person

including those belonging to the BC, Muslim & Christian communities

the family will be provided a sum of Rs. 5,00,000. I propose to allocate an

amount of Rs 404.02 crore for the YSR Bima scheme.

YSR Pension Kanuka

73. During the padayatra, our Hon’ble Chief Minister has seen first-hand

the deprivation faced by pensioners. They were getting a meager pension

Rs. 1,000 per month, just not adequate to lead a life with dignity. Avva

Thathala ku Manuvadiga, our Hon’ble Chief Minister signed his first file

enhancing the pension amount to Rs. 2,250, while laying a road map for

increasing it to Rs. 3,000 by the fourth year. Further, our Government has

reduced the age requirement from 65 to 60 years and decided to provide

pensions on saturation basis. This enhanced pension will benefit around

65 lakh pensioners in all categories – 24 lakh senior citizens, around 20

lakh widows, 6.3 lakh differently abled, 1 lakh weavers, 27,000 toddy

tappers. The pension for dialysis patient is also enhanced to Rs 10,000 per

month. I propose to allocate Rs. 15,746.58 crore for this program.

25

YSR Asara

74. As part of implementation of Navratnalu, through the YSR Asara

program, it is proposed to reimburse the entire outstanding bank loan

amount as on 11 April, 2019 of Rs. 27, 168 crore, in four instalments

starting from next year.

YSR Cheyutha

75. The functioning of the SC, ST, BC, Minorities & other Welfare Finance

Corporations is proposed to be reviewed and revamped this year. After

the revamp, these Corporations will undertake the identification of

beneficiaries under the YSR Cheyuta scheme with the assistance of the

Village & Ward Volunteers to ensure saturation. Next year onwards, my

SC/ST/BC and Minority sisters will start getting the benefits.

YSR Kalyan Kanuka

76. Through YSR Kalyan Kanuka, for assisting the brides belonging to BC

community, the Government intends to provide a wedding gift of Rs.

50,000, thereby benefitting 75,000 BC brides during 2019-20. Similarly,

for brides belonging to SC, ST & Minorities communities, an amount of

Rs 1,00,000 is proposed to be provided, benefitting 28,568 SC brides,

4,290 ST brides, 20,000 Minorities brides in 2019-20.

Other Welfare Schemes

77. Technology based disruptions are threating traditional occupations.

Case in point are drivers owning auto rickshaws & taxis who are not able

to compete with app-based mobility aggregator service providers like Ola

and Uber. This Government will come to their support by providing Rs.

10,000 per annum for bearing the cost towards insurance, fitness, repairs

and other requirements. I propose an allocation of Rs. 400 crore in the

budget for benefitting self-driven auto and taxi drivers.

26

78. This Government proposes to provide lawyers with a monthly stipend

of Rs. 5,000 during the first three years of practice. For this, I propose an

allocation of Rs. 10 crore during 2019-20. Further, I also propose to

establish a Trust for the welfare of Lawyers with a corpus of Rs 100 crore.

Agrigold

79. The Agrigold Group of companies had collected deposits from public

with the lure of offering high interest rates or a promise to register a piece

of land in lieu thereof. However, they neither repaid the deposits not did

they register any land in the depositors’ name. This created widespread

distress and panic among lakhs of depositors who lost their life time

savings. There are about 11.5 lakh victims of the Agrigold scandal in

Andhra Pradesh. The support to them is grossly overdue and it is time the

Government settled the issues pertaining to Agrigold. Therefore, I propose

to allocate Rs. 1,150 crore for this purpose.

Jalayagnam

80. “Haritha Andhra Pradesh”, was the vision of Dr. Y. S. Rajasekhara

Reddy, by stabilizing the Krishna and Godavari ayacuts, the parched

Rayalseema and the northern Andhra regions. In order to make his dream

come true, this Government is committed to complete the Polavaram

project by June 2021 by according it highest priority and providing it

sufficient budget. All measures will be taken to complete the resettlement

and rehabilitation of the project affected families with a humanistic

approach.

81. Government is equally committed to complete the Poola Subbaiah

Veligonda Project Tunnel -1 in a period of one year so that water can be

provided to 1.19 lakh acres. Tunnel -2 and the Phase II works will be

completed within a period of two years to create the balance ayacut.

82. Government will take all necessary measures to complete Phase-I of

Galeru Nagaru Sujala Sravanti project in one year time duly completing

27

Owk tunnel, store water in Gandikota reservoir and supply water to

ayacutdars in Kadapa district. Similarly, Government will take measures

to complete the Phase I of Handri Niva Sujala Sravanti to irrigate 1.98

lakh acre in Kurnool and Anantapuram districts. Further, the Phase II will

be completed in a time bound manner to feed the existing tanks in

Anantapuram and Chittoor districts.

83. This Government has also decided to complete the Vamsadhara project

and Sardar Gouthu Latchanna Thotapalli project to provide early

irrigation facilities in backward districts of Srikakulam, Vizianagaram and

Visakhapatnam districts.

84. In addition to completing the irrigation projects, this Government will

take measures to revive the lakes and tanks in the State.

85. I propose a budget of Rs. 13,139.13 crore for irrigation projects in the

budget for 2019-20.

Industry, Infrastructure and Jobs

86. Our Government is committed to achieving Special Category Status,

mainly for the purpose of job creation through special industrial

incentives. Without the status too, the Government is committed to job

creation through industrial and infrastructural development. The

Government is in the process of enacting a bill to provide 75 % reservation

to local youth in the industries which avail incentives.

87. This Government is taking steps to be the best State in not only the ease

of doing business but also the cost of doing business. The Government will

simplify unnecessary regulations and processes, for all industries, with

special emphasis on MSMEs. The Government is also planning to provide

necessary facilitation for setting up new units as well as assistance to revive

stressed units.

28

88. Our state is a new state & it requires ample infrastructure for

development. The previous Government has built many castles in the air,

without necessary foundations under them. We were told that the

performance of our energy utilities is the best in the country. However, to

our shock we recently discovered that our energy corporations are in such

dire straits that we are one of the only two states, which are at the risk of

losing power supply from NTPC due to dismal financial standing. In

energy sector alone, this Government inherited a debt of more than Rs.

20,000 crore from the previous Government.

89. In the energy sector, because of misgovernance the previous

Government paid more than Rs. 2,000 crore excess in power purchase

agreements. The buying rate for normal thermal power was Rs. 4.2 per

unit (Rs. 3.1 variable and Rs. 1.1 fixed per unit). The same for wind power

was Rs. 5.9 per unit (Rs. 4.8 variable and Rs. 1.1 fixed per unit). The

highest rate was for solar power at Rs. 7.1 per unit (Rs. 6 variable and Rs.

1.1 fixed per unit). While the norm is to source 5 % of energy requirement

from renewable sources, the previous Government sourced about 20 %

from high cost renewable sources aggregating to about 8,000 MW. This

Government is not contesting the need to obtain power from renewable

sources. All we are saying is that it should be done in a prudent &

conscious manner.

90. Nevertheless, the Government will focus on improving our

infrastructure so that there are no power outages and roads are free of

potholes. Our effort is to minimize logistical cost for personal and

commercial purposes and provide seamless connectivity between all major

destinations in all mandals and districts, through road, rail, air and water

ways.

91. For the development of Capital city of Amaravati, the Government

proposes to allocate Rs 500 crore in the budget.

29

92. The steel plant at Kadapa was an assurance made to the State in the

Andhra Pradesh Reorganisation Act, 2014 as well as election promise

made by this Government. The previous Government had laid foundation

stone for the project. However, there has been no progress with the project.

Hon’ble Chief Minister will lay the foundation stone for Kadapa Steel

Plant this year to fulfill the long pending demand of Rayalseema region. I

propose to allocate an initial amount of Rs. 250 crore in this budget for the

Kadapa Steel Plant.

Employee Wellbeing

93. Our Hon’ble Chief Minister is committed to the wellbeing of our

employees. The Government has approved provision of 27 % Interim

Relief to employees with effect from July 2019. A Group of Ministers is

set up to study the matter of regularization of services of contract

employees working in Government departments & allied matters. The

Government is examining the modalities for shifting away from the

Contributory Pension Scheme. A Committee has been set up to study in

detail various aspects regarding merger of APSRTC with the Government.

The Government is also contemplating various steps for welfare of

outsourcing employees.

94. There are many other employees, providing last mile service delivery,

although not employed as regular employees. Our Hon’ble Chief Minister

is committed to ensuring their well-being as well. Accordingly, the

Government has enhanced remunerations of,

a. ASHAs from Rs. 3,000 to Rs. 10,000 per month.

b. Tribal Community Health Workers from Rs 400 to Rs 4,000 per

month.

c. Municipal outsourced Public Health workers from Rs. 12,000 to Rs.

18,000 per month

d. SERP Village Organization Assistant & MEPMA Resource person

from Rs. 5,000 to Rs. 10,000 per month

e. Home Guards from Rs. 18,000 to Rs. 21,300 per month

30

f. Mid Day Meal cook cum helper from Rs. 1,000 to Rs. 3,000

g. Anganwadi Workers from Rs. 10,500 to Rs. 11,500 per month

h. Anganwadi Helpers from Rs. 6,000 to Rs. 7,000 per month

95. The enhanced remuneration will benefit around 3.17 lakh persons,

enhance their standard of living and boost their morale, which in turn will

result in better service delivery. In addition, our Hon’ble Chief Minister

has instructed all District Collectors to allocate one day in the month to

addressing their grievances, to resolve issues relating to delay in the

payments of remuneration of such employees.

Liquor Prohibition

96. We promised to undertake liquor prohibition in phases as liquor

consumption is a social evil and is severely damaging the social fabric.

Women and children are the most affected. As the first step, our

Government has started taking stringent action on belt shops. As the next

step, this Government is moving away from dealer owned shops to

Government owned shops so that it has control over the sale and the

consumption. This model will place on a path of liquor prohibition and

enable us to achieve our ultimate goal of confining liquor only to limited

places.

Governance

Priya Prajaanaam Daataiva

Na Punah Dravineshwarah

Which means,

What is the use of having so much water in ocean when nobody likes it?

Everyone prefers clouds, though they give only few rain drops.

97. We are all aware about the pervasive extent of land litigation across

the state, causing untold hardship to the sufferers. The existing survey

records are old and prepared during the surveys conducted from 1880 to

31

1910 and 1960 to 1980. A lot of effort and work including computerization

of records has gone into creating clear and accurate land titles. Yet the

records are not up to date & do not reflect the ground reality. There is no

proper integration of textual and graphical record. There is no single

window system for delivering hassle free land records.

98. It is the need of the hour to update and upgrade the land records by

integrating all attributes of each land parcel in the State and maintain a

real time single source of truth. The Government intends to take up

detailed land resurvey. It is proposed to introduce the state of the art

Continuously Operating Reference Station (CORS) technology, which is

now being used by all advanced countries. Using this technology, Geo-

coordinates of each vertex of land parcels will be recorded and in future

every individual land holder will able to demarcate his/her land on their

own by using Geo-cods. The Government has proposed to appoint

Village Surveyor in village Secretariat for 100% purification of land

records by conducting resurvey and thereafter the land related issues will

be attended at village level only.

99. Every citizen who has attempted to construct a house or a building in

our state has faced the brunt of massive corruption in obtaining sand. The

Government is taking steps to decisively change this situation. This

Government will be implementing a new model, wherein sand will be

available to all needy citizens online at the click of a button, and sand is

sold by Government agencies itself. This model will help us balance the

needs of citizenry with environmental protection, while ensuring zero

corruption.

100. We want to usher in a paradigm shift in accountability & transparency

within this Government. Therefore, we will be setting up a Judicial

Commission headed by a High Court judge. The contracts awarded in the

past will be subjected to reverse tendering process, so that their actual

value is realized. Contracts for execution of all projects would be awarded

only after the Commission clears tenders. The Commission will also

32

review the existing tendering process and recommend reforms to root out

corruption and ensure transparency in the process. This is all the more

required because our State is in such a disadvantageous financial position

due to the misdeeds of previous Government & the savings can be utilized

for taking up developmental activities.

Financial Accounts and Estimates

101. Accounts 2017-18: The finance accounts finalized by the Accountant

General of Andhra Pradesh show a revenue deficit of Rs. 16,151.68 crore,

and a fiscal deficit of Rs. 32,372.57 crore for the year 2017-18. The revenue

deficit and fiscal deficit for the year 2017-18 were 2.01 % and 4.03 % of

the GSDP respectively.

102. Revised Estimates 2018-19: The revised estimate for revenue

expenditure is Rs. 1,26,339.05 crore, whereas for capital expenditure it is

Rs. 20,398.15 crore. The revenue deficit for 2018-19 is estimated to be Rs.

11,654.91 crore, whereas the fiscal deficit for the same period is estimated

to be Rs. 33,619.00 crore, which amount to 1.25 % and 3.62 % of the

GSDP respectively.

103. Budget Estimates 2019-20: For the financial year 2019-20, I propose an

expenditure of Rs. 2,27,974.99 crore, with revenue expenditure estimated

at Rs. 1,80,475.94 crore and capital expenditure estimated at around Rs.

32,293.39 crore, which includes Rs. 8,994 crore towards principal

repayment of public debt. The 2019-20 budget estimates entail an overall

increase of around 19.32 % over the 2018-19 budget estimates. While the

revenue expenditure is estimated to increase by around 20.10%, the capital

expenditure is estimated to grow by around 12.60% over the 2018-19

financial year. The estimated revenue deficit is around Rs. 1,778.52 crore

and the fiscal deficit is estimated at around Rs. 35,260.58 crore. The fiscal

deficit will be around 3.30 % of the GSDP, whereas the revenue deficit

would be around 0.17 % of the GSDP.

33

Concluding Remarks

104. The goal of this Government is similar to Chanakya’s “Chaturvidha

Vikasas” i.e.

“Achieving the desired target,

Sustaining the achievement,

Expanding the sustained achievements,

Ensuring expanded results are useful for all”

105. I recall the words of former President of India, Sri K. R. Narayanan,

who said on the eve of the celebration of golden jubilee of Indian

independence,

“Fifty years into our life in the Republic we find that justice –social, economic

and political- remains an unrealized dream for millions of our fellow citizens. The

benefits of our economic growth are yet to reach them. We have one of the world’s

largest reservoirs of technical personnel, but also the world’s largest number of

illiterates; the world’s largest middle class, but also the largest number of people

below the poverty line, and the largest number of children suffering from

malnutrition. Our giant factories rise from out of squalor; our satellites shoot up

from the midst of the hovels of the poor.”

106. Speaker Sir, in this context, our Hon’ble Chief Minister through his

words “Nenu Vinnananu, Nenu Unnanu”, in the first few weeks itself, has

sown the seeds for our state to emerge as a role model. Ideally, our Hon’ble

Chief Minister would have liked us to implement the entire manifesto in

the first year itself. However, it is our attempt to maintain the balance

between welfare and wealth creation within our limited means that ties

our hands in achieving this ideal.

107. At this juncture, the words of Sri Rabindranath Tagore provide us a

guiding path.

34

“Everything comes to us that belongs to us if we create the capacity

to receive it.”

- Rabindranath Tagore

108. Our State, with its enterprising and hardworking people, has the

potential to be a role model to other States. This Government will make

every effort to enable the State to reach its true potential, regardless of the

financial constraints it inherited.

For this Government, there is no caste, creed, religion and no parties

at all. However, there will be:

Education for all.

Health for all.

Welfare for all.

Upliftment for all.

Let us be action oriented and proceed to fulfil the ambitions of late

Dr. Y. S. Rajasekhara Reddy. Let us wish that all people be happy!

Sir, with these words, I now commend the Budget to this august

House for its consideration and approval.

Jai Hind Jai Andhra Pradesh

35

Annexure-I Secretariat Department Wise Budget Estimates 2019-20

In Cr.

Sl. No

Department BE

2018-19 RE

2018-19 BE

2019-20

Growth % of BE 19-20 over 18-19

1. Agriculture Marketing & Co-Operation

10097.42 8164.07 18327.94 81.51

2. Animal Husbandry, Dairy Development & Fisheries

1743.02 1355.71 1912.29 9.71

3. Backward Classes Welfare 6213.17 2813.86 7271.45 17.03

4. Environment, Forest, Science & Technology

523.77 362.42 446.77 -14.70

5. Higher Education 2834.90 1952.78 3021.63 6.59

6. Energy 4193.30 2194.53 6861.03 63.62

7. Secondary Education 21612.30 17196.60 29772.79 37.76

8. Food & Civil Supplies 3495.39 697.01 4429.43 26.72

9. Finance 42929.75 44192.52 46858.81 9.15

10. General Administration 808.97 942.56 1010.78 24.95

11. Health, Medical & Family Welfare

8463.51 7227.90 11399.23 34.69

12. Home 6258.09 5664.16 7461.92 19.24

13. Housing 3679.53 3189.59 3617.37 -1.69

14. Water Resources 16978.23 14358.16 13139.05 -22.61

15. Industries,Infrastructure,Investmentand Commerce Department

4021.47 2178.09 3986.05 -0.88

16. Information Technology, Electronics & Communications

1006.90 464.02 453.56 -54.95

17. Labour and Employment 814.83 671.18 978.58 20.10

18. Law 854.18 685.60 937.37 9.74

19. Legislature 126.91 102.53 121.17 -4.52

20. Municipal Administration and Urban Development

7740.80 6562.13 6587.09 -14.90

21. Minorities Welfare 1101.90 653.37 952.47 -13.56

22. Public Enterprises 2.52 1.76 1.85 -26.68

36

Sl. No

Department BE

2018-19 RE

2018-19 BE

2019-20

Growth % of BE 19-20 over 18-19

23. Planning 1105.17 1142.01 1439.55 30.26

24. Panchayat Raj and Rural Development

23439.21 27727.65 31564.75 34.67

25. Revenue 4149.98 4139.04 9496.93 128.84

26. Department of Real Time Governance

172.00 119.07 145.75 -15.26

27. Skill Development, Entrepreneurship and Innovation

513.71 153.71 363.42 -29.26

28. Social Welfare 6407.91 2085.67 5919.07 -7.63

29. Transport, Roads and Buildings

4703.45 2599.81 6202.98 31.88

30. Women, Children, Differently Abled and Senior Citizens

3007.97 1998.59 2689.36 -10.59

31. Youth and Sports 2063.34 538.14 604.55 -70.70

Total 191063.61 162134.22 227974.99 19.32

37

Annexure-II

SECTOR WISE BUDGET ALLOCATION In Cr.

S. No. Sector B.E 2018-19 B.E 2019-20 Growth %

% in total

budget

A Economic Services 67,917.56 86,185.63 26.90 37.80

i) Agriculture and Allied Services

12,355.32 20,677.08 67.35 9.07

ii) Rural Development 20,815.98 29,329.98 40.90 12.87

iii) Irrigation and Flood Control

16,978.23 13,139.05 -22.61 5.76

iv) Energy 4,193.30 6,861.03 63.62 3.01

v) Industry Minerals 4,021.47 3,986.05 -0.88 1.75

vi) Transport 4,653.74 6,157.25 32.31 2.70

vii) General Eco Services 4,890.62 6,025.27 23.20 2.64

B Social Services 67,032.91 75,465.02 12.58 33.10 VIII) General Education 24,185.75 32,618.46 34.87 14.31

IX) Sports and Youth Services

1,635.44 329.68 -79.84 0.14

X) Technical Education 818.02 580.29 -29.06 0.25 XI) Art and Culture 94.98 77.67 -18.22 0.03 XII) Medical 8,463.51 11,399.23 34.69 5.00

XIII) Water Supply, Sanitation

2,623.23 2,234.77 -14.81 0.98

XIV) Housing 3,679.53 3,617.37 -1.69 1.59 XV) Urban Development 7,740.80 6,587.09 -14.90 2.89

XVI) Information & Public Relations

224.81 191.02 -15.03 0.08

XVII) Welfare 13,722.98 14,142.99 3.060 6.20

XVIII) Labour and Employment

814.83 978.58 20.10 0.43

XIX) Social Security & Welfare

3,029.03 2,707.86 -10.60 1.19

C General Services 56,113.14 66,324.35 18.20 29.09 XX) General Services 56,113.14 66,324.35 18.20 29.09 Grand Total 1,91,063.61 2,27,974.99 19.32 100

38

Annexure-III

State Development Schemes Expenditure

(Rs. in Crores)

S.No Name of the Scheme BE

2018-19 BE

2019-20 Growth %

1 Total State Development Schemes Expenditure

49103.00 92050.05 87.46

2 Scheduled Castes Component (SCSP) 11228.10 15000.85 33.60

3 Schedule Tribes Component (TSP) 4176.61 4988.52 19.44

4 Backward Classes Component 12200.00 15061.64 23.46

Sl.No. Department No. of

students M.T.F. R.T.F Total

1 SC Welfare 338721.00 382.23 416.43 798.66

2 ST Welfare 66058.00 84.65 115.60 200.25

3 BC Welfare 782396.00 943.14 1275.00 2218.14

4 Minority welfare 115230.00 150.00 220.05 370.05

5 Kapu Welfare 132762.00 249.54 405.73 655.27

6 EBC 99873.00 0.00 717.74 717.74

7 Differently Abled Welfare 871.00 1.00 1.19 2.19

Total 1535911.00 1810.56 3151.74 4962.30

39

Annexure-V

Important Major and New Schemes

I.Farmer Welfare

YSR Rythu Bharosa 8750.00

Y.S.R Nine Hours Free Power Supply 4525.00

Price Stabilization Fund 3000.00

Disaster Management 2002.08

YSR - PM Fasal Bima Yojana 1163.00

Power Subsidy to Aqua Farmers 475.00

Bore Wells under YSR Rythu Bharosa 200.00

Supply of Seeds to Farmers 200.00

Warehousing Infrastructure Fund (WIF) 200.00

YSR - Agri Testing Labs 109.28

Farm Mechanization 100.05

Y.S.R Interest free Loans to Farmers 100.00

Exgratia to Farmers 100.00

Strengthening of Dairy Cooperatives 100.00

Fodder and Feed Development 100.00

Construction of Godowns 37.54

II. Welfare of Fishermen

Relief for Marine Fishermen during fishing ban period 100.00

Fishing Jetties / Harbours 100.00

Diesel Subsidy to Fishermen Boats 100.00

Development of Fisheries 60.00

Relief and welfare of Fishermen belonging to Scheduled Castes 50.00

III. Education

Jagananna Amma Vodi - Incentives to Mothers of School going children 6455.80

Infrastructure Facilities in Schools 1500.00

Mid Day Meal Programme 1077.00

YSR - School Maintenance Grant 160.00

Construction of Centralised Kitchens - Akshya Patra Foundation 100.00

40

IV. Health

Dr. Y.S.R Aarogyasri 1740.00

Infrastructure facilities for Hospitals 1500.00

Honorarium to Asha Workers 455.85

Medical Buildings 68.00

Dr. YSR Tribal Medical College 66.00

Government Medical College, Gurajala 66.00

Government Medical College, Vizianagaram 66.00

Kidney Research Centre, Superspeciality Hospital at Palasa, Srikakulam District

50.00

State Cancer Institute 43.60

V. Housing

YSR Gruha Vasathi 5000.00

Pradhan Manthri Awas Yojana (Urban) 1370.00

Weaker Section Housing under YSR Housing Programme 1280.29

YSR Urban Housing 1000.00

Pradhan Manthri Awas Yojana (Grameen) 565.25

Assistance for Repayment of Loans to Financial Institutions 250.00

Weaker Section Housing Programme 150.21

Pradhan Manthri Awas Yojana (Urban) 170.00

VI. Welfare Pensions

YSR Pension Kanuka to Old age persons & widows 12801.04

YSR Pension Kanuka to Disabled Persons 2133.62

YSR Pension Kanuka to Single Women 300.00

YSR Pension Kanuka to Fishermen 130.00

YSR Pension Kanuka to AIDS Patients 100.20

YSR Pension Kanuka to Dialasys Patients (CKDU) 85.00

YSR Pension Kanuka to Toddy Tappers 78.85

Insurance/Pension Scheme to DWACRA Women (Dr. YSR Abhaya Hastam) 90.88

YSR Pension Kanuka to Transgenders 7.00

41

VII. YSR Kalyana Kanuka

YSR Kalyana Kanuka - BC Welfare 300.00

YSR Kalyana Kanuka - SC Welfare 200.00

YSR Giriputrika Kalyana Pathakam - ST Welfare 45.00

Y.S.R Shaadi ka tohfa - Minority Welfare 100.00

YSR Kalyana Kanuka - Marriage Incentive Awards 30.26

YSR Kalyana Kanuka for Promotion of Inter Caste Marriages 36.00

YSR Kalyana Kanuka for Promotion of Inter Caste Marriages 5.00

VIII. Other Welfare Schemes

Welfare of Kapus 2000.00

Financial Support to Agrigold Victims 1150.00

YSR Bima 404.02

Financial Assistance to Self Owned Auto Drivers 400.00

Y.S.R Financial Assistance to Nayee Brahmins, Rajakulu and Tailors 300.00

Y.S.R Assistance to Weavers 200.00

Y.S.R Grants to Religious Institutions 234.00

Brahmin Welfare Corporation 100.00

Trust for Welfare of Lawyers 100.00

Assistance to Lawyers 10.00

IX. Civil Supplies

Subsidy on Rice (Human Resources Development) 3000.00

Infra for Rice Packets 750.00

Assistance to AP State Civil Supplies corporation 384.00

X. Village & Ward Secretariats

Village Volunteers 720.00

Grama Sachivalayam 700.00

Municipal Ward Volunteers 280.00

Municipal Ward Secretariat 180.00

42

XI. Industries

Andhra Pradesh Industrial Infrastructure Corporation 360.00

Kadapa Steel Plant 250.00

Incentives for Industrial Promotion 573.60

Industrial Infrastructure Development Scheme 250.00

Infrastructure Development of Micro Small and Medium Enterprices (MSMEs)

200.00

Incentives for Industrial Promotion for Micro Small and Medium Enterprises (MSMEs)

200.00

XII. Infrastructure & Development

Special Development Package 700.00

Creation of Essential Infrastructure for new Capital City 500.00

Chief Minister Development Fund 500.00

Convergence Schemes under Mahatma Gandhi National Employment Guarantee Act

500.00

Construction of Panchayat Raj Roads under PMGSY 376.35

Panchayat Raj Roads 350.00

Visakhapatnam-Chennai Industrial Corridor Development Program – APTRANSCO Component

200.00

Cost sharing with Railways for construction of New Railway Lines (50%) 185.00

Panchayat Raj Roads under RIDF Programme 150.00

Smart Cities 150.00

Kadapa Annuity Projects 120.00

Infrastructure facilities in ULBs under CIIP 100.00

Pulivendula Area Development Agency 100.00

Amaravathi Ananthapuram National Highway 100.00

CM Call Center 73.33

Real Time Governance Society 71.90

Capital Region Social Security Fund 65.00

Elections to Municipalities 60.00

Development of Mangalagiri as Model Town 50.00

Improvement of Solid Waste Management sites under Solid Waste Management in Nagarapanchayats, Municipalities/Corporations

50.00

Amaravati Capital City Development Project 50.00

43

XIII. SHG Women

Interest Free Loans to DWACRA Women (Vaddileni Runalu) 1140.00

Y.S.R Interest free loans to urban Self Help Groups 648.00

XIV. APSRTC

Assistance to APSRTC 1000.00

Assistance to A.P.S.R.T.C. towards Reimbursement of concessions extended to various categories of citizens

500.00

Assistance to Andhra Pradesh Road Development Corporation (APRDC) 260.00

Assistance to Andhra Pradesh State Road Transport Corporation (ASRTC) for Purchase of Busses

50.00

Andhra Pradesh State Road Transport Corporation (ASRTC) 22.00