Yanamala’s Plea to tone up State finances

  • Asks for scrapping CSS schemes
  • Infrastructure, industry crucial

Hyderabad, December 26: Yanamala Ramakrishnudu, Finance Minister, Andhra Pradesh, today attended the  Pre-budget meeting with state Finance Ministers held under the chairmanship of Union Finance Minister,  Arun Jaitley at Ashoka Hotel here. The following statement was made by Ramakrishnudu.

“Unless States are stronger economically, country cannot be strong. Therefore, Government of India must strengthen the Economics of states, by better devolution of resources, scrapping CSS schemes or making them 100 per cent cent without burdening the states with compulsory share.  Unless primary sector is healthy or strong, majority of population will not be economically strong or healthy since majority of the population are dependent on agriculture & other primary activities.

Infrastructure & Industry focus is crucial. Unless good infrastructure exists, investments do not come, employment & value addition to primary sector comes to a halt.  Therefore, focus & incentives to promote infrastructure is essential at the state as well as national level.  States shall be helped in this regard by Government of India.

 A.P’s growth suffered in the recent past and many new problems arose because of the reorganization of the state.  Government of India should help the residuary state to overcome these difficulties liberally.  As mentioned in the beginning, unless the state is healthy, national growths get pulled down.

“We wish, 14th finance Commission has addressed our grievances, Even then, unless FRBM relaxations are given for a specific period, it becomes difficult to focus on infrastructure as whatever revenue the state accrues is going forward as revenue expenditure only.

The time has come to do away with plan & non Plan expenditure and instead resort to revenue & Capital budget system as is practised in many countries.  This may be expedited.

Finally, I request union Govt. to make budgetary provision to all the commitments it made in the A.P. Reorganistion Act as well as on the floor of the house”.

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