Yanamala for white paper on dealings with financial bodies

State should tell out how it is going to get Rs. 46,000 crores for projects State should clarify as to how it is going to raise Rs. 46,000 crores for projects

Staff Reporter

RAJAHMUNDRY: The former Finance Minister and Public Accounts Committee chairman, Yanamala Ramakrishnudu, has asked the State Government to release a white paper on tie-ups with external financial institutions for construction of irrigation projects in the State.

Addressing a press conference here on Friday, he asked the State Government whether it would stick to the fiscal parameters set through an ordinance in accordance with 12th Finance Commission recommendations or was it going to violate the same in getting loans. He said the State Government should spell out about how it was going to get Rs. 46,000 crores for completion of 26 irrigation projects in the State. He wanted the details of the tie-ups with whom they were going to get loans and what were the conditions and repayment details.

While appreciating the State Government's budgetary support of Rs. 8,000 crores to irrigation projects, the former Finance Minister said that as per the 12th Finance Commission parameters, no State Government should exceed Rs. 7,000 crores as loan and fiscal deficit should not exceed 3 per cent in GSDP (Gross State Domestic Product). "The State Government should spent Rs. 10,000 crores every year to complete irrigation projects within five years with an escalated cost of Rs. 56,000 crores. So, it has to exceed the Rs. 7,000-crore limit," he added. He said that by exceeding the limit, the State Government was going to lose the benefits like debt relief, debt write-off facility and grants.

State share

He said that the State got 7.1 per cent share in total share of transfer in 11th Finance Commission and in 12th Finance Commission it came down to 6.6 per cent (gap of 0.05 percent which was equal to Rs. 3,050 crores). He said the State should tell the public about the fiscal status in every quarter.

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