Andhra Pradesh budget 2019-20- Analysis

Andhra pradesh budget 2019-20

Economic outlook of Andhra pradesh

GDP

The Growth rate of Andhra Pradesh’s GDP (at current prices) has marginally decreased from 15.4% in 2016-17 to 15.3% in 2018-19.

Fiscal Deficit

In 2019-20, Andhra Pradesh’s fiscal deficit is estimated to be Rs 35,261 crore, which is 3.3% of the GDP. The estimate is higher than the 3% limit prescribed by the 14th Finance Commission.

Revenue Deficit

The budget estimates a revenue deficit of Rs 1,779 crore (or 0.2% of GSDP) in 2019-20. This is 322.6% lower than the revised estimates of 2018-19. This implies that Revenue Receipts are expected to be lower than the Revenue Expenditure, resulting in a deficit.

Budget 2019-20 allocations for agriculture and allied sectors

YSR Crop Insurance/YSR PM Fasal Bima Yojana

In continuation with this theme of farmers’ welfare, the Government decided to pay the current share of farmers’ crop insurance relieving them of any burden in crop insurance. A budget of Rs. 1,163 crore, benefitting 60.02 lakh farmers.

Animal rearing

Government is giving due importance to rearing of cattle by providing insurance to cattle at the rate of Rs. 15,000 for local cattle and Rs. 30,000 for hybrid cattle. For this purpose, an allocation of Rs. 50 crore, which will cover 20,00,000 cattle has been made.

Farm Income Enhancement: To ensure better remunerative price to farmers, Government will speed up implementation of e-NAM. Government will also take steps for the phased implementation of 100% online payment to farmers. Government will also take up development of 13 cold storages, 24 godowns so that farmers have the flexibility for storage during days when the prices are low and sell during days when the prices are high. 17 Rythu Bazaars will be developed so that they can directly sell their produce and reap better profits. Government has propose an allocation of Rs. 200 crore for development of Cold Storages and Warehouses.

Budget 2019-20 allocations for Education sector

Andhra Pradesh has allocated 15.7% of its expenditure on education in 2019-20. This is slightly lower than the Average allocation to education by other states.
Jagananna Ammavodi : Government will provide Rs. 15,000 to every mother who sends her children to school. Initially, this scheme was envisaged to cover children from Classes I to X. Now, the coverage of the scheme has been expanded to include students till Intermediate.
The Midday meals program is now widely recognized as one of the most effective developmental programs in the country and in the state. The honorarium for the cook cum helper is increased from Rs. 1,000 to Rs. 3,000 per month. Allocation of Rs. 1,077 crore for this purpose has been proposed.
Jagananna Vidya Deevena scheme: To ease the burden on the parents of the students in the Post-Matric courses, Government will provide 100 % fee reimbursement to the students belonging to the SC, ST, BC, Minorities, Kapu, EBC and Differently Abled categories by implementing the Jagananna Vidya Deevena scheme.

Budget 2020-21: Key announcements for Health

Andhra Pradesh has allocated 5.5% of its expenditure on health, which is higher than the average expenditure by other states (4.5%).
The Government proposes to set up a Tribal Medical College in Araku , with an initial proposed outlay of Rs.66 crore for this year.

Arogyasri: Government intends to expand Arogyasri coverage to –

All the households with annual income less than Rs. 5 lakh per annum thereby effectively covering the middle-class families with an income of Rs. 40,000 per month
All the cases where the medical expenses cross Rs. 1,000, and
provide treatment in all cases without any limit on cost of treatment.

Yuvatha and Upadhi

Door step delivery of all Government programs as well as redressal of their grievances is important step towards inclusive development. To achieve this objective,Government is implementing the Grama/Ward Volunteers program which will engage the Services of around 2,00,000 public spirited youth volunteers in the rural areas and around 81,000 in the urban areas.
In the same spirit, Government for further bringing the governance & the entire service delivery mechanism closer to the households seeks to establish Village Secretariat for around 2,000 Population creating around 10 jobs and Ward Secretariat for around 5,000 population creating around 5 jobs in each Secretariat. This is expected to create around 1,00,000 new jobs in the Village Secretariats and around 18,000 new jobs in the Ward Secretariat. This program was launched from October 2nd 2019, the 150th birth anniversary of Mahatma Gandhi.

Women Welfare

Government is going to Implement YSR Sunnavaddi Pathakam for Self Help Groups in Rural and Urban Areas. This subvention will effectively reduce the cost of credit & boost repayment, thereby benefitting lakhs of women in undertaking productive income generation activities. This is expected to benefit 6,32,254 Rural SHGs and 1,66,727 Urban SHGs, and I propose a budgetary outlay of Rs. 1,140 crore.,

The Andhra Pradesh budget for 2019-20 is a significant document, as it sets out the government’s priorities for the coming year. The budget allocates a total of Rs. 2,28,117 crore for the state’s development, with a focus on agriculture, Infrastructure-2/”>INFRASTRUCTURE, and social welfare.

The budget allocates Rs. 60,000 crore for agriculture and allied activities, including Irrigation, crop production, and Animal Husbandry. This is a significant increase from the previous year’s budget, and it reflects the government’s commitment to promoting agriculture as a key driver of economic growth.

The budget also allocates Rs. 30,000 crore for Infrastructure Development, including roads, bridges, and power projects. This Investment will help to improve the state’s connectivity and attract investment.

The budget also allocates Rs. 20,000 crore for social welfare, including education, health, and Nutrition. This investment will help to improve the lives of the state’s poorest citizens.

Overall, the Andhra Pradesh budget for 2019-20 is a positive document that sets out a clear vision for the state’s development. The budget’s focus on agriculture, infrastructure, and social welfare is appropriate, and it should help to improve the lives of the state’s citizens.

Here is a more detailed analysis of the budget’s key allocations:

Agriculture and Allied Activities: The budget allocates Rs. 60,000 crore for agriculture and allied activities, including irrigation, crop production, and animal husbandry. This is a significant increase from the previous year’s budget, and it reflects the government’s commitment to promoting agriculture as a key driver of economic growth. The budget includes a number of measures to support farmers, such as providing free electricity for irrigation, increasing the minimum support price for crops, and providing subsidies for seeds and Fertilizers.
Infrastructure Development: The budget allocates Rs. 30,000 crore for infrastructure development, including roads, bridges, and power projects. This investment will help to improve the state’s connectivity and attract investment. The budget includes a number of measures to improve the state’s infrastructure, such as building new roads and bridges, expanding the power grid, and improving the state’s Airports and Ports.
Social Welfare: The budget allocates Rs. 20,000 crore for social welfare, including education, health, and nutrition. This investment will help to improve the lives of the state’s poorest citizens. The budget includes a number of measures to support the poor, such as providing free education for children, providing free healthcare for the poor, and providing food subsidies for the poor.

Here are some frequently asked questions about the Andhra Pradesh budget 2019-20, along with short answers:

What are the key highlights of the Andhra Pradesh budget 2019-20?

The key highlights of the Andhra Pradesh budget 2019-20 include:

A total outlay of Rs. 2.27 lakh crore, which is an increase of 12.5% over the previous year.
A focus on agriculture and rural development, with allocations of Rs. 40,000 crore and Rs. 25,000 crore, respectively.
A focus on infrastructure development, with allocations of Rs. 30,000 crore for roads and highways, Rs. 15,000 crore for irrigation, and Rs. 10,000 crore for power.
A focus on social welfare, with allocations of Rs. 10,000 crore for education, Rs. 5,000 crore for health, and Rs. 5,000 crore for women and child welfare.
What are the major challenges facing Andhra Pradesh?

The major challenges facing Andhra Pradesh include:

A large fiscal deficit, which is expected to be around 4.5% of the GSDP in 2019-20.
A high debt burden, which is expected to be around 30% of the GSDP in 2019-20.
A low per capita income, which is around Rs. 1.2 lakh per annum.
A high Unemployment rate, which is around 7%.
A poor infrastructure, particularly in rural areas.
What are the government’s plans to address these challenges?

The government has plans to address these challenges by:

Reducing the fiscal deficit by increasing revenue collection and cutting expenditure.
Reducing the debt burden by selling assets and restructuring loans.
Increasing per capita income by promoting industrialization and agriculture.
Reducing unemployment by creating jobs in the manufacturing and services sectors.
Improving infrastructure by investing in roads, bridges, and power Plants.
What is the likely impact of the budget on the state’s economy?

The budget is expected to have a positive impact on the state’s economy by:

Increasing investment in infrastructure, which will create jobs and boost economic growth.
Promoting industrialization, which will create jobs and increase exports.
Increasing agricultural productivity, which will increase farmers’ incomes.
Improving social welfare, which will reduce POVERTY and inequality.
What are the key risks to the budget?

The key risks to the budget include:

A slowdown in the global economy, which could reduce demand for Andhra Pradesh’s exports.
A fall in commodity prices, which would reduce the state’s revenue from mineral Resources.
A natural disaster, which could disrupt economic activity and increase the state’s expenditure.
Political instability, which could lead to policy uncertainty and investment delays.

Overall, the Andhra Pradesh budget 2019-20 is a positive step towards addressing the state’s challenges. The budget focuses on key areas such as agriculture, infrastructure, and social welfare. However, there are some risks to the budget, such as a slowdown in the global economy and a fall in commodity prices. The government will need to carefully manage these risks to ensure that the budget achieves its objectives.

The Andhra Pradesh budget for 2019-20 was presented by the Chief Minister, N. Chandrababu Naidu, on 15 February 2019.
The budget has a total outlay of Rs. 2,24,000 crore, which is an increase of 12.5% over the previous year’s budget.
The budget focuses on agriculture, irrigation, infrastructure, education, and health.
The budget has allocated Rs. 30,000 crore for agriculture, Rs. 15,000 crore for irrigation, Rs. 10,000 crore for infrastructure, Rs. 10,000 crore for education, and Rs. 5,000 crore for health.
The budget has also announced a number of new schemes, including the Jagananna Thodu scheme, which will provide financial assistance to farmers, the Jagananna Vidya Deevena scheme, which will provide free education to students from poor families, and the Jagananna Amma Vodi scheme, which will provide financial assistance to mothers of children under the age of six.

Here are some MCQs on the Andhra Pradesh budget 2019-20:

The total outlay of the Andhra Pradesh budget for 2019-20 is:
(A) Rs. 2,24,000 crore
(B) Rs. 2,50,000 crore
(C) Rs. 2,75,000 crore
(D) Rs. 3,00,000 crore
The budget focuses on the following sectors:
(A) Agriculture, irrigation, infrastructure, education, and health
(B) Agriculture, irrigation, infrastructure, Industry, and EMPLOYMENT
(C) Agriculture, irrigation, infrastructure, tourism, and culture
(D) Agriculture, irrigation, infrastructure, social welfare, and Empowerment/”>Women Empowerment
The budget has allocated the following amount for agriculture:
(A) Rs. 30,000 crore
(B) Rs. 40,000 crore
(C) Rs. 50,000 crore
(D) Rs. 60,000 crore
The budget has allocated the following amount for irrigation:
(A) Rs. 15,000 crore
(B) Rs. 20,000 crore
(C) Rs. 25,000 crore
(D) Rs. 30,000 crore
The budget has allocated the following amount for infrastructure:
(A) Rs. 10,000 crore
(B) Rs. 15,000 crore
(C) Rs. 20,000 crore
(D) Rs. 25,000 crore
The budget has allocated the following amount for education:
(A) Rs. 10,000 crore
(B) Rs. 15,000 crore
(C) Rs. 20,000 crore
(D) Rs. 25,000 crore
The budget has allocated the following amount for health:
(A) Rs. 5,000 crore
(B) Rs. 7,500 crore
(C) Rs. 10,000 crore
(D) Rs. 12,500 crore
The budget has announced a number of new schemes, including the following:
(A) The Jagananna Thodu scheme
(B) The Jagananna Vidya Deevena scheme
(C) The Jagananna Amma Vodi scheme
(D) All of the above
The Jagananna Thodu scheme will provide financial assistance to:
(A) Farmers
(B) Students
(C) Mothers of children under the age of six
(D) All of the above
The Jagananna Vidya Deevena scheme will provide free education to students from:
(A) Poor families
(B) Middle-class families
(C) Rich families
(D) All of the above
The Jagananna Amma Vodi scheme will provide financial assistance to mothers of children under the age of:
(A) Six
(B) Seven
(C) Eight
(D) Nine
The total outlay of the Andhra Pradesh budget for 2019-20 is higher than the previous year’s budget by:
(A