Andhra Pradesh budget 2019-20- Analysis

Andhra pradesh budget 2019-20

Economic outlook of Andhra pradesh


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.

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