AP budget 2022 looks at balanced urban, rural development

Rural development

The state government has allocated Rs. 15,846.43 crore for rural development for 2022-23, an increase of 23.4% than the previous year. The budget for rural development for 2021-22 was around Rs. 12,836.53 crore.

Buggana Rajendernath said that in 2021-22, under MGNREGS, 2,176 lakh person days were generated. "The persons provided employment as a percentage of persons who demanded employment under MGNREGS has increased from 91.28% in 2019-20 to 98% in 2021-22. It is noteworthy that 99.41% of payments were made within 15 days. In 2022-23, our government intends to generate 3,000 lakh person days under MGNREGS," said Mr. Rajendernath.

He added that Rs. 5,000 crore is for materials under MGNREGS.

Urban development

The AP government has proposed Rs. 8,796.33 crore for municipal and urban development department in 2022-23, an increase of 9% from Rs. 8,055.25 crore last year.

Mr. Rajendernath said the government is giving top priority to provide drinking water to all urban local bodies by strengthening the existing infrastructure and improving service levels. In 2021-22, 86,356 house service connections were added.

"As a policy to Reduce, Recycle and Re-use municipal waste, Andhra Pradesh has sanctioned 85 integrated solid waste management projects and 32 projects are already functional. It is planned to construct 93 sewage treatment plants in 93 ULBs with less than one lakh population in the next three years. The percentage of municipal solid waste (MSW) processed to the total MSW generated has increased from 48% in 2019-20 to 53.62% in 2021-22," added the finance minister.

Water resources

The government has proposed allocating Rs. 11,482.37 crore for the development of water resources in 2022-23, an increase of 36.23% compared to Rs. 8,428.23 in 2021-22.

Industries and commerce

The state has proposed to allocate Rs. 2,755.17 crore for the development of industries in 2022-23, an increase of 44% compared to Rs. 1,906.08 in 2021-22.

The finance minister said that up to 31 December 2021, 7107 micro, small, and medium enterprises were established with an investment of Rs. 2,099 crore, providing employment to 46,811 people. Up to 31 January 2022, 11 large and mega projects were established with an investment of Rs. 2,048 crore, providing employment to 3,989 people. In addition, 55 large and mega projects are under various stages of implementation with an investment of Rs. 44,097 crore and committed employment of 93,116.

He also added that in order to develop air connectivity in the state, the government has entered into an agreement for the development of Bhogapuram Greenfield International Airport under PPP mode. Uyyalawada Narasimha Reddy Airport at Orvakal in Kurnool districts is the first airport in southern India to be entirely developed by the state government. "Airlines have started operating flights from Kurnool to Chennai, Bangalore, and Visakhapatnam. New routes have been proposed from Kurnool to Tirupathi and Vijayawada. Proposals are under consideration to start scheduled flight operations between Chennai-Kadapa-Vijayawada," he added.

Further, the proposed development of Airport City on 541 acres in Kurnool airport with Flying Training Organization, Aero Sports, MRO facilities is under process.

Transport and road infrastructure

The state has proposed an allocation of Rs. 8,581.25 crore for transport, roads and buildings department in 2022-23 which is 13% higher than the allocation in 2021-22.

The finance minister said two projects – AP Mandal Connectivity and Rural Connectivity Improvement Project and AP Roads and Bridges Reconstruction Project – with a cost of Rs. 6,400 crore are being taken up with the financial assistance of New Development Bank to provide double-lane connectivity from district to mandal headquarters and between different mandal headquarters.

"Under this project, widening of 2,522 km of roads and construction/reconstruction of 464 bridges are proposed. Our government has accorded administrative sanction for the phase-I works for Rs. 3,014 crore for the improvement of 1,243 km of roads and the works are in progress," said the minister.

He also added that the state government is participating in the State Support Program for Strengthening Road Safety to reduce road accident deaths. Departments like police, transport, R&B, and health are in the process of preparing action plans with clear-cut performance indicators to achieve the targeted reduction in the number of road accidents.

Energy

The state has proposed allocating Rs. 10,281 crore to the energy department in 2022-23, including power subsidy for farmers and aqua farmers, which is a reduction of 24%.

The finance minister said with regard to SDG 7 - Affordable and Clean Energy, the percentage of households electrified in Andhra Pradesh has increased from 92.5% in 2014-15 to 100% in 2021-22.

"In order to account for the energy consumed and reduce losses, as per the stipulations of the government of India, meters will be provided to all distribution transformers and feeders. Agriculture feeder segregation has been initiated which will provide 24x7 3-phase supply to all rural areas. This will give a big incentive for industrial development in rural areas," said the finance minister.

Housing

The government has proposed an allocation of Rs. 4,791.69 crore to the transport, roads and buildings department in 2022-23 which is 26% higher than the allocation in 2021-22 which was Rs 3,786.47 crore.

The finance minister said the government is committed to providing permanent houses to all eligible households in the state by 2023. He said 28.3 lakh houses will be constructed in two phases and added that 15.6 lakh houses with a cost of Rs. 28,084 crore are covered in phase I. Out of these, 11.44 lakh houses are covered in YSR Jagananna Colonies and another 4.16 lakh houses on their own sites. Out of 15.6 lakh houses,10.88 lakh houses are grounded, and 2.5 lakh houses are at the basement and above stages.