ANDHRA PRADESH

State to woo investments to counter recession

HYDERABAD: Admitting that the global economic slow down is beginning to show its adverse impact, the State government said that it was trying to attract private investment, particularly in infrastructure sectors as part of efforts to counter recession effect.

This was stated in the Fiscal Policy Statement tabled by Finance Minister K. Rosaiah in the Assembly on Tuesday. It said that in order to counter recession effect and augment employment potential, increasing investments was essential. The government was also trying to attract it through Public Private Partnership (PPP) mode.

Welfare programmes

The government was spending considerable funds on various programmes like Jalayagnam, housing, employment guarantee scheme and in the social sectors which were expected to have substantial impact on economic growth in both demand and supply sides by improving production of the State and increasing purchasing power of the people.

The State’s fiscal discipline had yielded an amount of Rs.2,022 crore as interest relief and Rs.2,592 crore as debt relief from the Government of India so far.

The government is confident of continuing the fiscal discipline in future, the statement added.

The State’s fiscal policy strategy was to control revenue expenditure by cutting down administrative costs on one hand and mobilise resources by plugging loopholes on the other in a bid to enhance investment in productive capital assets and social sectors and attain sustainable economic growth.

It said that the GSDP for 2008-9 is estimated at Rs.2,52, 318 crore as against Rs.2,39,102 crore for 2007-08 (quick estimates) reflecting a growth of 5.53 per cent.

GSDP

During last five years, the GSDP of the State on the average recorded 9.14 per cent and higher than the annual average growth of GDP ( all India) which is 8.49 per cent. Further, during the last three years, the GSDP of AP was consistently more than 10 per cent “which itself is a record”. In spite of global recession, State is able to continue along with the growth path.

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