Finance Minister Yanamala Ramakrishnudu on Friday requested the Union government to make budgetary provision to honour all the commitments made in the Andhra Pradesh Reorganisation Act as well as on the floor of Parliament.
Speaking at the pre-budget meeting of State Finance Ministers convened by Union Finance Minister Arun Jaitley at New Delhi, he pointed out that Andhra Pradesh’s growth suffered in the recent past and many new problems arose because of the reorganisation of the State. He urged the Government of India to liberally help the State to overcome these difficulties.
Expressing the wish that 14 State Finance Commission addresses the State’s grievances, he said, “Even then, unless Fiscal Responsibility and Budget Management (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.”
Suggesting that plan and non-plan expenditure be done away with and instead revenue and capital budget system be resorted to as was in vogue in many countries, he said, “This may be expedited.”
Strengthening StatesMr. Ramakrishnudu said the country could not be stronger unless the States were stronger. Therefore, the Government of India must strengthen the States by better devolution of resources, scrapping centrally-sponsored schemes (CCS) or making them 100 per cent CSS without burdening the States with compulsory share.
Observing that investments would not flow unless good infrastructure exists, he said focusing on incentives to promote infrastructure was essential at the State and the national level. He wanted the Centre to help States in this regard. He said unless the primary sector was healthy and strong, majority of the people dependent on agriculture and other primary activities would not be economically strong.
