The NDA government in Andhra Pradesh presented its Budget of Rs 2,94,427 crore for the financial year 2024-25 today in the Legislative Assembly with only about four months left before the current year comes to an end and Finance Minister Payyavula Keshav stating that the state economy was on the brink of collapse.
While the revenue expenditure was estimated at Rs 2,35,916.99 crore and capital expenditure at Rs 32,712.84 crore, the revenue deficit was pegged around Rs 34,743.78 crore and the fiscal deficit at Rs 68,742.65 crore. While the revenue deficit will be around 2.12 per cent of the GSDP, the fiscal deficit will be around 4.19 per cent of GSDP.
The YSRCP boycotted the Budget session in the Assembly to protest against the Speaker who did not recognise YS Jagan Mohan Reddy as the Leader of the Opposition.
Presenting his first Budget as Finance Minister Keshav said, “The state economy is on the brink of collapse. It is in the hands of this generation now to restart and rebuild Andhra Pradesh.” Slamming the previous YSRCP for the financial woes he said, “The previous regime was driven only by the concept of private profit. There was looting of natural resources for private profit, causing loss of revenue to the State exchequer by unauthorised mining of natural minerals, followed by deliberately designed sand policy and excise policy for personal gains.”
He then said “The Budget proposals I am presenting today, have been prepared against the financial background of the state with an intention to restart the development cycle by focussing on economic revival, leading to wealth creation.” He allocated Rs 16,739 crore for Panchayat Raj and rural development which is headed by Deputy Chief Minister and Jana Sena leader Pawan Kalyan. Around Rs 29,909 was allocated for the school education department.
YSRCP leader Vijay Sai Reddy described the Budget as a damp squib. “AP’s Budget only shows the false claims of TDP. Finance minister says that he is against loans, the Budget documents show an increase of loans from the central government, from Rs 5011crore in 2023-24 to Rs 18,249 crore in 2024-25. The total public debt will also rise from Rs 76,209 crore to Rs 91433 crore. It is not speed of doing business but speed of taking debt seems to be the focus of this TDP government. Grants in aid from the central government show a fall from Rs 34,701 crore.” He added, “So, the debt is increasing. It is certainly a double engine government but both engines are moving in the opposite direction, therefore net effect is zero.”
After coming to power the NDA government in AP didn’t present a Budget immediately and continued with vote on accounts due to the acute financial crisis.