AP set to plunge into deep financial crisis: Governor

Hyderabad, June 21 : Blaming the criterion adopted for the division of the State, Andhra Pradesh Governor ESL Narasimhan said that the residuary State was set to plunge into a deep financial crisis.

Addressing both the House of Andhra Pradesh Legislature, the Governor said that residuary State had to forego major economic assets and inherited huge liability without having the wherewithal to service the debt. Thus, he said Andhra Pradesh is made to reel under severe financial strain. “The process of bifurcation coupled with frittering away of resources and mal-governance have deeply impacted the State and its finances which are in disarray. The united Andhra Pradesh has been a revenue surplus State as far as non-plan revenue is concerned. Unfortunately, the division made the residuary State a revenue deficit State on non-plan account by an order of more than Rs 15,000 crore. The liability on account of salaries and pensions has jumped from nearly 52% to 73% of the State’s own revenue, purely on account of division,” he said.

The Governor said that the government has decided to bring out white papers on key sectors. The white papers will critically examine the status and performance under important social and economic parameters pertaining to HRD, Infrastructure and Industries, Irrigation and Agriculture, Power and Resource Mobilisation Sectors. He said that the construction of Andhra Pradesh was possible only with continued liberal financial and moral support of the Government of India till a level playing field is achieved.

Narasimhan said that the Centre would be requested to provide a special grant of over Rs 15,000 crore in the ensuing budget for the period of June 2014 to March 2015 to bridge the non-pl.an deficit. The Centre should hasten up the process of according the status of Special Category State to Andhra Pradesh. A special development package should also be approved by the Centre. In addition, a special grant of over Rs 8,600 crore would also be sought as Additional Central Assistance from the Centre to finance critical development projects that are currently under execution.

The Governor said that the government was working out the strategies to institutionalise corruption-free and good governance practices so that the ideology of less Government and more governance would soon be a reality. A new model of governance will be worked out where the focus will be on decentralisation and developing multiple business hubs. Investments will be attracted and different cities will be developed as education, knowledge, IT, industrial and logistics hubs while giving equal importance to the manufacturing sectors.

Narasimhan said that the government has embarked upon a 100-day development agenda to put the administration back on track for realising the vision. The vision 2020 documents will be re-drafted. A special development plan is being worked out for backward regions of Rayalaseema and north Coastal districts keeping in view their natural resources base.

The Governor said that the government has appointed a committee to implement the farm loan waiver promise. The report of the committee will facilitate announcement of a package to mitigate the distress and loan burden of the farmers. He said that the government was committed to provide quality power for nine hours a day at free of cost to the farming community. He said that the government would ensure that Andhra Pradesh gets a fair share of smart cities announced by the Central Government. “Our plan is to develop three mega cities and 12 other cities,” he said.

Narasimhan also listed out various welfare schemes proposed to be implemented by the government. “We will strive to put in place a government that provides all facilities, resources to the common man and take immediate measures to control price rise and instill confidence among them through ensuring transparent, accountable and corruption-free governance,” he said.  INN