Budget to be welfare oriented

HYDERABAD: The budget 2011-12 which would be presented to the state assembly during third week of February is likely to be more of a welfare oriented one giving rise to speculation among political circles that it is being planned keeping in view the possibility of a mid-term poll in the state.
"There is no question of levying new taxes," finance minister A Ramanarayan Reddy said.But the state government proposes to tread a cautious path and peg the budget estimates for 2011-12 at Rs 1.20 lakh to Rs 1.25 lakh crore. The government is likely to give greater importance to welfare programmes like Indiramma housing, free power for agriculture, medical and health which includes Rajiv Arogyasri, Abhaya Hastam, a contributory pension scheme for women, NREG programme, pavala vaddi, Indira Kranthi Pathakam, special package for weavers, infrastructural facilities in rural areas and issue of ration cards.
Though Jalayagnam will continue to get the lion's share of the budget, the increase in the outlay will be marginal. The allocation for Jalayagnam in the present budget was Rs 15,011 crore and it may go up by about another Rs 2000 crore at the most. Though Rs 15,000 crore has been allocated for the current year, only Rs 6000 crore has been released and of this Rs 4000 crore has gone towards clearing of pending bills.
The fiscal deficit is likely to be around Rs 17,000 crore as against Rs 14,282 during the 2009-10 financial year. Sources predict that the planned expenditure is likely to be around Rs 45,000 crore as against Rs 40,313 crore during the current fiscal.
The government will also have to keep the fast changing political developments in mind while finalising the budget estimates. On one hand analysts do not rule out possibility of a mid-term poll and on the other, the farmers who have been badly effected by rains and other natural calamities during last 15 months is causing worry for the government as reports indicate that there is growing anti-incumbency in the state.