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AP, 1st Indian State presented its Budget amid COVID-19: Rs 2.24 lakh cr Budget publicized by Buggana Rajendranath for FY21

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AP govt presents Rs 2On June 16, 2020, Finance Minister of Andhra Pradesh (AP) Buggana Rajendranath presented the AP state budget for Rs 2.24 lakh crore for the FY20-21. With this, AP became the first Indian state to convene its Legislative Assembly and Council which will adopt a budget for FY21 amid the Covid-19 pandemic. Apart from this, AP Governor Biswabhusan Harichandan addressed the Assembly through video conference, which is also another first for the country.

  • The budget amount stated a decrease of 1.4% over FY19-20 due to major economic slowdown caused by Covid-19.
  • The revenue deficit estimated at Rs 18,434 crore and a fiscal deficit estimated at Rs 48,295 crore.
  • A  revenue  receipts  of Rs 1.61 lakh cr projected in FY2020-21 while revenue expenditure is estimated at Rs 1,80,392.65 crore.  
  • The capital expenditure, including loan repayments and other disbursements, is estimated at Rs 44,396.54 crore.
  • The budget projected a further rise in the state’s debt to Rs 3,48,998 crore in the 2020-21 which was increased to Rs 3.02 lakh crore at the end of March 2020.

Key Points from budget:

-In addition to the direct money transfer schemes implemented in the last fiscal, at least seven others will be launched this year under the government’s flagship “Navaratnalu” programme.

-A sum of Rs 37,659 crore will be spent under the head Direct Benefit Transfer for schemes like YSR Pension Kanuka, YSR Aasara, Jagananna Amma Vodi, Jagananna Vidya Deevena, YSR Kapu Nestham, YSR Jagananna Chedodu, Jagananna Thodu, YSR Cheyuta.

  • The same schemes, with a total outlay of Rs 37,618 crore, will also be implemented under various sub-components like SC, ST, BC, Minority and Kapu welfare for the respective communities
  • The allocation for Kapu welfare is Rs 2,845 crore and Rs 23,406 crore for BC welfare. The government allocated Rs 1,998 crore for minority welfare.

Allocation to the agriculture sector stands at Rs 11,891 crore 

  • Rs 3,615 crore will be distributed to farmers under the Rythu Bharosa scheme towards inputs and another Rs 1,100 crore towards interest-free farm loans.

Allocation to education sector 

  • Rs 22,604.01 crore for secondary and Intermediate education for 2020-21.
  • The Higher Education department received Rs 2,276.97 crore
  • A sum of Rs 348.31 crore was earmarked for technical education,
  • While Jagananna Vidya Deevena (RTF) received Rs 3,009 crore, Jagananna Vasathi Deevena (MTF) got Rs 2,000 crore. A sum of Rs 3,000 crore was allocated for the Nadu-Nedu scheme under which 15,715 schools have been identified in the first phase for taking up works in nine components to improve basic infrastructure. 
  • Jagananna Goru Muddha scheme got Rs 974.86 crore. 

 -Allocation to the health sector is pegged at Rs 11,419 crore.

-For women members of self-help groups (SHGs) in rural and urban areas, a sum of Rs 1,365 crore has been earmarked under the interest-free loan scheme.

Bill Introduced:

State government introduced and passed two Bills — the Decentralisation Bill and the AP Capital Region Development Authority (CRDA) Repeal Bill.The Bill enables the setting up of three capitals, with Amaravati being the Legislative capital, Visakhapatnam the Executive capital and Kurnool the Judicial capital.


The AP state government could not hold a regular budget session owing to the nationwide lockdown earlier. It had obtained approval for a three-month budget of Rs 71,000 crore for the April-June period through an Ordinance in the last week of March, 2020.

About AP:
Chief Minister– Yeduguri Sandinti Jaganmohan Reddy 
Capital– Amaravati