It is normal practice for a newly formed government to present a full-scale budget before the newly constituted assembly after elections. However, chief minister N Chandrababu Naidu said to be hesitating to present such a budget at the present juncture as the YS Jaganmohan Reddy government created a mess in the financial management and it would take time to get clarity on various issues involved in it.
The present vote-on-account budget approved during the previous regime will expire by July-end. So, the government has decided to summon an assembly session on July 22. But sources said that it is unlikely to present a full-scale budget and likely to present a vote-on-account budget again for the next three to four months. A full-scale budget is likely to be presented in the month of September.
As the financial condition of the state is in a state of confusion formulating the budget for the remaining period of this financial year will become a difficult task for the new government. The finance ministry is proposing to bring out an ordinance for introducing vote-on-account, which is awaiting for the approval of the chief minister.
Still exercise in preparation of a full-pledged budget has not started by various government departments to send proposals to the finance ministry. Moreover, the government also needs to get clarity on implementation of various schemes and allocation of funds for such schemes.
The government has reportedly now attempted to get clarity on prevailing scenarios with regard to the economic destruction done by the previous government. Most of the departments are said to be left without any worthwhile financial resources. Arrears in every department are said to be at high peak.
Officials felt that correcting all these calculations and bringing a clear financial picture has become a challenge for the new government. In this situation, there is no other option before the new government except to present a vote-on–account for the time being.
At present the income coming to the government is sufficient only for staff and salaries. With this, it is expected to introduce a full-scale budget after receiving the full details and proposals.
