The Andhra Pradesh government has allocated Rs 9,000 crore for the mega Polavaram project on the Godavari in its annual budget presented on Thursday by State Finance Minister Y. Ramakrishnudu in the state assembly at Amaravati.

The Rs 1,91,063.61-crore budget was presented at a time when the state is passing through a political crisis, as the allies - the Telugu Desam Party and the BJP - are headed for a split over the issue of implementation of the AP Re-organisation Act, 2014, and granting of special category status to the state after bifurcation.

Finance Minister Ramakrishnudu said in very trying circumstances after the state’s bifurcation in 2014, Andhra Pradesh had maintained double-digit growth for the past four years, "even though the Union Government is being very indifferent in extending the promised financial assistance." The Budget deficit was Rs 24,205.21 crore, with the revenue expenditure being Rs 1,50,270.99 crore and capital expenditure Rs 28,678.49 crore.

Major allocations: The major allocations were Rs 16,978 crore for irrigation (including Rs 9,000 for Polavaram), Rs 12,352 crore for agriculture, Rs 3,074.87 crore for industries, Rs 20,815 crore for rural development, Rs 4,100 crore for farm loan waiver, Rs 24,185 crore for education, Rs 12,200 crore for BC welfare, Rs 1,000 crore for the Kapu Welfare Corporation, Rs 5,000 crore for NTR pensions, Rs 1,000 crore for NTR health services, Rs 6,226 crore for the Home Department, Rs 200 crore for Anna canteens, Rs 1,000 crore for allowances to jobless youth, Rs 3,000 crore for free power, Rs 800 crore for smart cities, and Rs 7,761 crore to the Capital Region Development Authority (CRDA).

The state government allocated Rs 461 crore to the IT sector, Rs 400 crore for incentives to IT units and Rs 100 crore specifically for start-ups. A sum of Rs 300 crore was allocated for food processing units, and Rs 600 crore for the AP Fibergrid, besides Rs 270 crore for the AP Medtech Zone in Visakhapatnam district. For the Visakhapatnam-Chennai industrial corridor, Rs 1,668 crore was allocated and Rs 100 crore was allocated for the mega seed park in Kurnool district. An allocation of Rs 750 crore was made for handicrafts, and Rs 250 crore for handlooms. For the Swachch Bharat project, Rs 1450 crore was allocated. A sum of Rs 200 crore was allocated to the APSRTC to strengthen its fleet of buses. For tourism Rs 290 crore was allocated. The state government allocated Rs 1,000 crore for providing interest-free loans to women’s self-help groups. State Agriculture Minister S. Chandramohan Reddy presented the Agriculture Budget.

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