The Centre ’s slashing funds to the tune of Rs 5,200 crore in the last two years has come as a shock to the state.The Centre has justified the latest cut by citing the global financial meltdown. However, it is a major blow to the state which is planning to implement a series of welfare schemes ahead of the elections.Though the 2008-09 Union Budget allocated Rs 13,068 crore for the state, only Rs 11,142 crore was released. In the interim Budget presented on Monday, the Central allocation to the state was further cut from Rs 15,832 crore to Rs 12,613 crore.
“We are disappointed with the Centre’s decision to reduce its allocation to the state,” said Mr K. Rosaiah, minister for finance.The government is now planning to bring pressure to allot a reasonable share in the Rs 40,000-crore package announced by Mr Pranab Mukherjee in his Interim Budget on Monday.
Officials of the finance department are on the task. “We are looking at the package for the states,” said Mr Rosaiah. “We need some sort of compensation for the loss already thrust on the state.” AP is also looking for a major share in increased allocations for the agriculture and education sectors.
Agriculture loans worth Rs 2.50 lakh crore would be disbursed this financial year country-wide and the state hopes for a reasonable share in that.Further, the Centre’s decision to increase educational loans from Rs 4,500 crore to Rs 24,262 crore has excited the state.The Chief Minister termed the Budget “most responsible” under the given circumstances. He praised Mr Mukherjee for increasing the outlay for key sectors.
