Budget 2022 Disappointing, AP Interests Ignored: Buggana Rajendranath

AMARAVATI: State Finance Minister Buggana Rajendranath said the Central government had neglected Andhra Pradesh's interests in Budget 2022. In a statement released on Tuesday after the Budget Session was over, the Finance Minister said that it was deeply disappointing that the promises made in the AP State Reorganisation Act 2014  were not considered. He expressed dissatisfaction that there was no mention made of the special status for the state, Polavaram dam, infrastructure creation, industries, and central government agencies in the budget session by Union Finance Minister Nirmala Sitharaman.

He said the Indian economy was recovering through the creation of infrastructure at the national level with the participation of the states. But, he said it was not right on the Centre’s part not to take into account the difficulties facing the states. He said it would have been better if the central government had allocated huge funds from the Center and increased the limits on debt collection for the state governments which are facing severe difficulties due to the COVID pandemic limited resources and restrictions on loans.

Rajendranath said there was a significant reduction in the allocation of funds for MGNREGA, fertiliser, and food subsidies.

There is a rise in the allocation of funds to Jal Jeevan Mission, National Education Mission, and National Health Mission.

However, there is a need for further allocation of funds to the National Health Mission in view of the evolving Covid situation,’ he said.

Buggana also said that the Finance Commission grants and Items of Transfer to States were reduced, which in turn led to falling in the allocation of overall Transfer to States and UTs from Rs 8.59 lakh crore in 2021-22 (RE) to Rs 7.95 lakh crore in 2022-23 (BE).

 It is observed that GST made a significant contribution to Gross Tax Revenue of the Union government. Gross tax revenue has increased from Rs 14.26 lakh crore in 2020-21 (Actuals) to Rs 17.65 lakh crore in 2021-22 (RE).

However, the rise in debt receipts is a matter of concern. It is a good sign to note that the expenditure on the establishment is controlled, allocation to Defence sector is enhanced from Rs 13.89 lakh crore in 2021-22 (RE) to Rs 15.23 lakh crore in 2022-23 (BE) and to Railways from Rs 2.04 lakh crore in 2021-22 (RE) to Rs 2.39 lakh crore in 2022-23 (BE).  

However, an increase in the interest payments from Rs 8.14 lakh crore in 2021-22 (RE) to Rs 9.41 lakh crore in 2022-23 (BE) is a matter of concern, he said. 

The extension of the Emergency Credit Line Guarantee Scheme up to March 2023 and increased allocation to Credit Guarantee Trust are imperative for the revival of the MSME sector, the Finance Minister said. 

He said the decision to procure domestically what was needed for defense and defense research was paramount. The allocation for the defense sector in the last budget was Rs. 13.89 lakh crore to Rs. 15.23 lakh crore. He said the increase from Rs 2.04 lakh crore to Rs 2.39 lakh crore was a positive development. But the provision for interest payments is Rs. 8.14 lakh crore to Rs. 9.41 lakh crore, he said. Gross tax revenue this year is expected to touch Rs. 17.65 lakh crore. In 2020–21, Rs. 197.46 lakh crore GDP in 2021–22 to Rs. 232.18 lakh crore.

The fiscal deficit is projected to decline to 9.21 percent in 2020–21 and 6.85 percent in 2021–22. The revenue deficit is projected to fall to 7.34 percent of GDP in 2020–21 from 4.34 percent in 2021–22, he said.

On the bright side, the concept of seven engines – Roads, Railways, Airports, Ports, Mass Transport, Waterways, Logistics and Infrastructure — and National Master Plan for world-class modern infrastructure are good initiatives.  Further, the allocation of funds to National Highways is almost doubled, which is remarkable.  

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