Though this would be Rosaiah’s first budget after he became the Chief Minister and 16th budget as finance minister he had presented a record 15 budgets.
According highly placed sources, this budget will have an outlay of Rs 1.08 lakh crore–thus making it the third successive budget with over Rs 1 lakh crore outlay.
Last July Rosaiah presented a Rs 1.03-lakh crore budget, with a fiscal deficit Rs 16,162 crore. But various factors like the global economic downturn, droughts, floods and also political turmoil resulted in an over Rs 8,000 crore revenue shortfall.
This has impacted the expenditure under various heads, including the governments flagship programmes like Jalayagnam.
The Jalayagnam (irrigation projects) programme got Rs 18,617 crore in the current budget but the actual expenditure was only about half of it.
According to sources, the budget outlay for irrigation could be cut to about Rs 14,000 crore. Various welfare schemes require about Rs 25,000 crore.
Given the mounting revenue shortfall, government will have to cut down its spends. “We cant say there will be no allocation, but some adjustments are inevitable. There will also be some rationalization with the weeding out of ineligible beneficiaries,” the sources said.
In 2009-10, AP allocated Rs 6,040 crore for power subsidy and this may require Rs 1,000 crore more this year.