Andhra Pradesh - Hyderabad   

Borrowings only for capital expenditure, says Rosaiah

HYDERABAD: The State government would spend every rupee of the additional Rs. 5,966 crore it proposes to borrow from the markets for capital expenditure and employment generation, Finance Minister K. Rosaiah said here on Thursday.

Piloting the Andhra Pradesh Fiscal Responsibility and Budget Management (Amendment) Bill, 2008 in the Council, he said the government did not have to borrow funds under special provisions to it was entitled because of fiscal discipline during the last four years. But, the global economy slowdown and real estate slump this fiscal created a revenue shortfall, he said.

Leader of the Opposition Dadi Veerabhadra Rao said the Congress, which assailed the previous TDP government for pushing the State into a debt burden through its reckless borrowings, had failed to maintain fiscal discipline.

Terming the government’s Rs. 1 lakh crore budget as ‘over ambitious’, he said the government simply boosted the budget without real means.

He feared that it would fritter away the borrowed money to lay foundation stones for the newly conceived irrigation projects and publicity in the election year.

M. V. S. Sarma (teacher) suggested that the government should seek modification for FRBM Act itself as it limited government spending affecting mainly employees and teachers.

As the Bill had also been passed by the Assembly, it would be referred to the Governor for assent.

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