Though the impact of the Union Budget on the outlay of the State budget for 2015-16 is being examined, Finance Minister Yanamala Ramakrishnudu indicated that it will not be less than Rs.1 lakh crore.

Andhra Pradesh which pinned hopes on Union Budget to make special allocation to the revenue-deficit State and accordingly tailor its own State budget will be now forced to curtail its non-plan expenditure to the possible extent. Finance Department sources said apart from the reduction in share of Central taxes to AP by Rs. 2,300 crore , the State is deprived of another Rs.3,000 crore as the Centre withdrew some centrally sponsored schemes. Similarly the share of Centre in some Central schemes has also been reduced from 80 per cent to 50 per cent.

Mr. Ramakrishnudu told media that the allocation made by the Finance Commission to the State for 2015-16 was scaled down by the Centre based on its revised budget estimates due to fall in its own revenue. With only few days to go for the budget session of AP (from March 7 to 27), he said that they were hopeful that the Centre would make some changes so as to incorporate more allocations in the State budget, especially funds for Polavaram and new capital city and also various promises made to the State, he said.

Mr. Ramakrishnudu will present the State budget on March 12 and the Agriculture Minister P. Pulla Rao will present the Agriculture Budget on March 13. The Finance Minister, however, said the dues under 13{+t}{+h}Finance Commission, regular devolution earmarked for 2014-15, Central Sales Tax compensation of Rs.700 crore should be released before March 31. If the Centre releases another instalment to compensate the revenue deficit of Rs.15,000 crore for the current year, State would have some relief.

He said priority would be given to make annuity payments to farmers who gave lands for capital. The Revenue department deputed 30 teams to complete the documentation work. An amount of Rs.150 crore to Rs.180 crore will be provided towards annuity payments in every budget.

A provision for Special Development Fund may also be made in the budget 2015-16 but sources ruled out allocation for Assembly Constituency Development Fund.

If the Centre releases another instalment to compensate the revenue deficit, it will spell some relief for the State

Yanamala Ramakrishnudu,Finance Minister