The Budget session of Andhra Pradesh Legislative Assembly is set to start on August 18 and the maiden budget of the new residual State is likely to be presented on Wednesday.
During the budget preparation process, the State Finance Minister Yanamala Ramakrishnudu has indicated that the State will come out with a separate budget for the agriculture sector. There are clear indications that the budget would be close to the magical number of Rs. 1,00,000 crore.
This will be the first budget of the new Government under N.Chandrababu Naidu post the division of the State and is expected to provide some direction in terms of the sectoral allocation and priorities towards welfare schemes and subsidies.
A detailed review meeting on the Budget was held by the Chief Minister with FM and others on Saturday.
The State Cabinet had announced the decision to come out with a separate budget for the farm sector as it was felt that agriculture and allied sectors such as horticulture require special focus. The State has taken the Karnataka Government model while deciding to come out with a separate budget for the farm sector. It is likely to be presented on August 22.
Faced with a deficit of Rs. 16,000 crore, the State is having to tackle the huge commitment of meeting the funding requirement for the loan waiver scheme to the farm sector, Dwacra women self-help groups and weavers community, requiring a financial commitment of Rs. 45,000 crore.
With the RBI allowing reschedule of loans for last year kharif season and that too for only four of the 13 districts in the State, the State is now saddled with additional financial burden. The State was hoping that loan reschedule might support up to Rs. 10,000 crore. However, it is likely to take up the issue again with the RBI.
The Opposition is expected to corner the Government on the delay in implementation of the loan waiver scheme and in finalising the location for the new capital.