Corporates in Andhra Pradesh today gave a mixed reaction to the state’s Rs 1.61 lakh crore Budget for fiscal 2013-14 presented in the Assembly. While Federation of Andhra Prdesh Chambers of Commerce and Industry (FAPCCI) said the budget fell short of expectations, CII’s AP chapter lauded Finance Minister Anam Ramanarayana Reddy’s efforts to accelerate economy growth in the key southern State.
The Federation said it expected a major push to growth in the budget allocations, but the state government allotted just Rs 250 crore in addition to the previous year. There is a huge backlog of incentives to be paid. “There is a huge backlog of incentives to be paid.
The provision is not sufficient to clear old dues. Further, the Chief Minister’s announcement of VAT refund on diesel also needs to be covered in this. The provision made in the Budget is not sufficient,” FAPCCI said in a statement. As far as power sector is concerned, the allocations in Budget very low. The entire subsidised power of Rs 14,000 crore needed to come out of the Budget, it added.
Ashok Reddy, Chairman CII AP, in a statement said the measures announced in the Budget will find the means to accelerate growth in domestic economy. The plan expenditure is estimated at Rs 59,422 crore, which is a 10 per cent increase over the last year, is a welcome step, he said. However, Reddy felt increase in non plan expenditure continuous to be a concern for industry. The measures taken for generating 2,200 M W additional power in the coming fiscal will certainly reduce the power cuts for industry, he felt.
The Government move of encouraging solar pump sets for agriculture purpose will reduce the dependence of farmers on grid power, Reddy maintained. The proposal to establish 39 warehouses across AP will reduce the wastage of agriculture produce, he felt. Establishment of food processing units will add value to various food products and help farmers get remunerative prices, Reddy said. PTI