Experts cast doubts over Rs. 2.94 lakh cr budget

Tirupati: The ambitious state budget for the 2024-25 fiscal year, presented on Monday by finance minister Payyavula Keshav, has raised concerns among various sections, who question the feasibility of the proposed Rs 2.94 lakh crore outlay over a brief four-month period. The budget, which includes a deficit of nearly Rs 1 lakh crore, is being scrutinised for its potential to deliver on promises within the narrow timeframe.

Speaking to The Hans India, Rayalaseema Intellectual Forum (RIF) convenor M Purushotham Reddy has voiced concerns about the viability of the budget’s goals. He remarked that while allocation of Rs 16,705 crore to the irrigation sector appear promising, particularly compared to last year, executing projects in such a short time frame remains a major hurdle.

He noted that most funds might end up directed toward the Polavaram project, leaving little for initiatives in Rayalaseema and other areas, which he believes could lead to minimal impact on regional projects. “This budget seems more like a formality. Only in the next budget will we likely see the government’s priorities truly emerge,” he opined.

Prof Himachalam Dasaraju, Emeritus Professor at SV University highlighted positive intentions within the budget.

He observed that this year’s full-fledged budget, following two consecutive interim budgets, focuses on welfare and developmental programmes, including initiatives like ‘Super Six’. With revenue expenditure set at Rs 2.35 lakh crore and capital expenditure at Rs.3,271.84 crore, he emphasised the potential for a stronger financial base in the state. Sectors like youth skill development, green energy, agriculture and women empowerment received notable attention, although he called for additional support for MSMEs to foster sustainable employment.

Agricultural stakeholders, however, expressed concerns over the implementation challenges for the sector. Mangati Gopal Reddy, leader of the Farmers Association, lamented what he saw as neglect toward ongoing projects.

He argued that instead of launching new initiatives, the state should have prioritised completion of existing projects to achieve tangible outcomes. While the budget includes allocations for crop insurance, interest-free loans and agricultural power supply, he warned of the difficulty in translating these plans into action on the ground.

“On paper, the allocations look promising. But ensuring that Rs.1,025 crore for crop insurance and Rs.628 crore in interest-free loans truly reach farmers will be a monumental task”.