Pro-farmer, Pro-poor, Pro-reforms Budget: CM

Hyderabad|India|March'2011: The Chief Minister N Kiran Kumar Reddy said the Union Budget presented by Finance Minister Pranab Mukherjee is a pro-poor, pro-farmer and pro-reforms budget. He said Mr Mukherjee has done what is possible under the circumstances to all sections of people right from farmers and Anganwadi workers to tax payers and senior citizens.

Reacting to the budget, the Chief Minister expressed happiness that the country is on high economic growth path and the GDP increased to 8.2% compared to 7.3% previous year and overall economic growth rate in the current year is 8.6% which is expected to grow at 9% during 2011-12. He said the Finance Minister has also expressed the opinion that high food prices is the principle concern of the Government and there is a need to revitalise the rural economy.

The Chief Minister welcomed the increaed allotment of Rs.500 crores for women SHG groups Development fund, Rs.300 crores for weavers and increase in credit flow from Rs.3,75,000 crores to Rs.4,75,000 and also loan at pavala vaddi to farmers. He also welcomed the allotment of Rs.30 cr. for the development Left Wing Extremists affected districts. The Chief Minister also welcomed the Duty Cut for Micro Irrigation Equipment and on import of raw silk. He also hailed the provision of Rs.3,000 crs. to NABARD to provide support handloom weaves coop societies which have become unviable.

He also welcomed allocation under Rashtriya Krishi Vikas Yojana (RKVY) increased from Rs.6,755 to Rs.7,860 crore and increase in the allocation for Accelerated Irrigation Benefit Programme (AIBP). It is also good that a Mortgage Risk Guarantee Fund is proposed to be created under Rajiv Awas Yojana to enhance credit worthiness of economically weaker sections.

The Chief Minister said there is also good news that agriculture sector grew at 5.4% while industries registered a growth at 8.1% and service sector at 9.3%. He said the continuation of interest subvention for farmers and more outlay for storage and cold chain for vegetables will do good for Andhra Pradesh. The Finance Minister also introduced capital investment in storage capacity to be eligible for viability gap funding. He also welcomes linking of wages under NREGS to inflation. Mr Kiran Kumar Reddy also hailed the increased allotment under the SC/ST sub plan in all relevant ministries and introduction of pre-matric scholarships for SC/ST students.

He also expressed happiness over the provision for Backward Regions Grant Fund (BRGF) at Rs.9,890 crores as against Rs.7,300 crore as Andhra Pradesh will also get commensurate increase. The Chief Minister expressed satisfaction that the provision for SSA is increased by 40% and and for Rashtriya Madhyamik Shiksha Abiyan (RMSA) by 42% and hoped that the State stand to gain. He said sufficient matching share has been provided in the State budget to get the commensurate share of State Govt. He hailed that the provision for increase in the provision for PMGSY by 58%.

The Chief Minister welcomed the announcement that Natinal Food Security Bill will be introduced next year. He also hailed the decision of the Finance Minister for increase in allocation of infrastructure and tax-free bonds for infrastructure development. He also welcomed the initiates to curb black money and the decision on a five-fold strategy to deal with black money and on Group of Ministers to suggest ways for tackling corruption.

The Chief Minister also welcomed the phased move towards direct transfer of cash subsidy to BPL category for better delivery of kerosene, LPG and fertiliser. He also expressed satisfaction that the FDI Policy is being liberalised further.

The Chief Minister thanked the Finance Minister for doubling the remuneration of Anganwadi workers from Rs.1,500/-to Rs.3,000/- and Anganwadi helpers from Rs. 750/- to Rs.1,500/-

Mr Kiran Kumar Reddy said that Mr Pranab Kumar Mukherjee also helped the individual tax payers to some extent by increasing the minimum tax exemption limit though did not raise up to their expectations and also did well by decreasing the age limit of senior citizens from 65 to 60 and increasing their tax exemption limit to Rs.2.50 lakhs.