Dr Reddy happy over Budget allocation to AP

Hyderabad, Feb 28 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today expressed happiness that the state was getting Rs 1380 crore more than the Rs 9170 crore sought in the devolution of funds in the Union Budget.

Talking to newspersons, along with state Finance Minister K Rosaiah here, Dr Reddy said the Union budget indicated financial stability and a check in revenue and fiscal deficits.

He said the increase of plan allocation by 18.5 per cent and non- plan allocation by 16.2 per cent was a welcome development.

Citing inflation as a worrying factor, he said the Union Finance Minister had addressed the problem by reducing customs duty and enabling import of essential commodities.

Welcoming the extension of the National Rural Employment Guarantee Programme (NREGP) to another 130 districts, he hoped that it was good if more districts were added under the scheme apart from the 13 which were already included.

He said the government had sent proposals for inclusion of all districts excepting Hyderabad in the programme.

He welcomed the Rs 24,600 crore allocation to the Bharat Nirman programme and the allocation hike of 21.9 per cent to health sector.

The increase in the allocation for irrigation and the 20 per cent increase in assistance from the NABARD would benefit the state.

Removal of exise duty on bio-diesel, reduction of import duties and reduction of excise duty from eight to six per cent on petrol and diesel were also welcome decisions.

Finance Minister Rosaiah said the increase in income tax exemption on annual income of Rs 1.10 lakh, Rs 1.90 lakh for senior citizens and Rs 1.45 lakh for women were also welcome.

UNI