: The State government has urged the Centre to amend the Fiscal Responsibility and Budget Management (FRBM) Act so as to help in raising the limit of borrowings to boost pubic spending.
Addressing a press conference here on Tuesday, Chief Minister N. Chandrababu Naidu said that State required more elbow room and flexibility in managing fiscal deficit. The State government had been making repeated appeals in this regard. The Centre should help the State face the challenges thrown up by the ‘unscientific’ bifurcation of the State, he said.
Even the 14{+t}{+h}Finance Commission had not addressed the State’s development needs. It denied the State a level-playing field and had not made any specific award for Andhra Pradesh, though it acknowledged that the State suffered fiscal damage as a result of reorganisation. The Finance Commission had treated A.P. on a par with other States, both for the purpose of tax devolutions and revenue deficit grant, he pointed out.
At the time of bifurcation, it was estimated that A.P. would have a revenue deficit of Rs. 16,000 crore but the Centre hardly took any step to provide relief.
Instead, there were arguments that A.P. was facing the deficit due to implementation of the debt redemption scheme.
“No going back
on loan waiver”
The Centre should not link the loan waiver scheme and the revenue deficit. It should release Rs. 16,000 crore as estimated, he said.
“Loan waiver is my promise to farmers. I have to fulfil it at any cost. The Centre has to do its bit on the revenue deficit front,” he said.
Referring to the private member’s Bill for grant of special status to A.P., Mr. Naidu sought to throw the ball in the Centre’s court. Raising technical issues that the Bill would not become Act even if it was passed was not correct.
It would be double injustice if the Centre did not act in the correct manner now.
Onus on BJP
Onus lies on all political parties, more particularly the Bharatiya Janata Party (BJP), in this regard. The political parties that displayed enthusiasm in dividing the State should exhibit the same spirit in helping A.P., he said.
“We are asking for handholding until we reach a level-playing field with other southern States,” he said, adding,
“I have asked my MPs to mount pressure on the Centre to see to it that provisions of the reorganisation Act are implemented.”
I&PR Minister Palle Raghunatha Reddy and Government Communications Advisor Parakala Prabhakar were present.
