Promises ignored, but FM sees some bright spots
VIJAYAWADA: Finance Minister Buggana Rajendranath has said that it is disappointing that the promises made in the AP Reorganisation Act, 2014, including Special Category Status, Polavaram national project, infrastructure, industries, Central institutions and others were not addressed in the Union Budget 2022-23.
Rajendranath said there was a significant reduction in allocation of funds for MGNREGA, fertiliser and food subsidies. “There is a rise in allocation of funds to Jal Jeevan Mission, National Education Mission and National Health Mission. Further, allocation of funds to National Highways is almost doubled, which is remarkable. However, there is a need for further allocation of funds to the National Health Mission in view of the evolving Covid situation,’’ he said. Buggana also said that the Finance Commission grants and Items of Transfer to States were reduced, which in turn led to fall in allocation of overall Transfer to States and UTs from Rs 8.59 lakh crore in 2021-22 (RE) to Rs 7.95 lakh crore in 2022-23 (BE).
“The resilience of the Indian economy has been built with the participation of States. In the mission of nation building, the focus of the Centre on infrastructure is well conceived. However, the States are better placed to identify specific gaps in infrastructure, and the devolution of funds to the States will further strengthen the mission of nation building,’’ he said. It is observed that GST made a significant contribution to Gross Tax Revenue of the Union government. Gross tax revenue has increased from Rs 14.26 lakh crore in 2020-21 (Actuals) to Rs 17.65 lakh crore in 2021-22 (RE). However, the rise in debt receipts is a matter of concern. It is a good sign to note that the expenditure on establishment is controlled, allocation to Defence sector is enhanced from Rs 13.89 lakh crore in 2021-22 (RE) to Rs 15.23 lakh crore in 2022-23 (BE) and to Railways from Rs 2.04 lakh crore in 2021-22 (RE) to Rs 2.39 lakh crore in 2022-23 (BE). However, increase in the interest payments from Rs 8.14 lakh crore in 2021-22 (RE) to Rs 9.41 lakh crore in 2022-23 (BE) is a matter of concern, he said.
The concept of seven engines – Roads, Railways, Airports, Ports, Mass Transport, Waterways, Logistics and Infrastructure — and National Master Plan for World Class Modern Infrastructure are good initiatives. The extension of the Emergency Credit Line Guarantee Scheme up to March 2023 and increased allocation to Credit Guarantee Trust are imperative for the revival of the MSME sector, the Finance Minister said.
Progressive steps
Increased procurement of defence sector from domestic industry and opening of Defence R&D to industry, start-ups and academia are progressive steps