Taking the reins on upcoming year, AP govt had already commenced its budgetary preparation for the year 2016-17. The oncoming fiscal budget is being stated to be radically different and compliant with the vision, mission and future of new Andhra Pradesh.
To make this come true, the finance department has been working exhaustively since sometime to give a proper shape to the next year budget, incorporating needful changes as compared to the last one.
Confirming the plans and status, the minister for finance Yanamala Ramakrishnudu held a review meeting with all the department officers to study the expenditure incurred so far. He revealed that future allocation of budget for various departments will be strongly based on the expenses made in the current fiscal year.
AP Fiscal Budget – Three Phases
The next year’s fiscal budget will be completed in three phases.
Meetings will be first organised with various departments where their respective proposals will be accepted and reviewed before approval.
Finance minister will have some direct interactions with main officials and other ministers to understand and collect information on the expenditure spent by each department. The officials have also been directed to prepare their next budgets in a way that supports the credible functioning of the government.
Draft version of fiscal budget will be presented to Chief Minister Sri N Chandrababu Naidu who will review and approve the same.
Main Highlights of AP’s Fiscal Budget 2016-17
No New Taxes
Minister Ramakrishnudu indicated that there will be no new taxes in the budget. The various schemes and policies aimed at public welfare will be continued, giving emphasis on planning and capital expenditure. This is mainly to facilitate exponential productivity and economic activity within the new state.
Budget Planned Accordingly Till Year 2020
Principal Secretary of Finance P.V. Ramesh, who is currently in Japan confirmed that the budget for 2016-17 will primarily see the goals set for year 2020 under the ‘seven missions of the government’. The funds will be allocated accordingly for each year, prioritizing the sector wise allocations and achieve the double digit growth.
Focus on Non Plan and Revenue Expenditure
The focus this time will be to curb unplanned revenue expenditure, saving inevitable accounts and emphasize on capital expenditure to make the budget growth driven.
AP’s next fiscal budget for 2016-17 will incorporate the best practices from across the world.