Hyderabad|India|July'2009: Andhra Pradesh has heralded a new chapter in the history of welfare and development sectors by successful implementing all its path-breaking programmes without any obstacles, thereby achieving the highest growth rate of economy, compared to the national average in the last five years.

This was stated by Chief Minister Dr.Y.S.Rajasekhara Reddy, while discussing with the Minister for Finance K.Rosaiah and Principal Secretary, Finance, G.Sudhir, on the issues to be raised at the 13th Finance Commission meeting scheduled to be held at Jubilee Hall on Monday.

Mr Rosaiah explained to the Chief Minister that notwithstanding the global economic recession and its impact on the Indian economy, the state government could successfully implement all welfare and developmental programmes – whether it was Jalayagnam or Indiramma housing programme or pensions, without any hassles in expenditure. “In fact, ours is a success story, which can be replicated in the entire country,” he said.

While appreciating the comment of the Finance Minister, the Chief Minister suggested that the officials showcase the achievements of the state government before the Finance Commission for seeking more assistance, so that similar programmes could be continued with more vigour in the coming years.

The Chief Minister directed that the officials be fully prepared to impress upon the Finance Commission headed by Dr.Vijay Kelkar on the pertinent need for liberal assistance for the massive programmes undertaken by the State Government, particularly Jalayagnam. He said the key recommendations of Finance Commission would help the State achieve record food grain production to overcome food security crisis, since irrigation was the lifeline of the agriculture.

Keeping in view the mobilisation of huge financial resources and creation of additional irrigation potential, the State Government had proposed that important irrigation projects like Indira Sagar Polavaram Project, Mahatma Jyoti Rao Phule Dummugudam-Nagarjunasagar Tail Pond, Dr B R Ambedkar Pranahita Chevella Sujala Sravanti, Babu Jagjeevan Ram Uttarandhra Sujala Sravanti, JCR Devadula Lift Irrigation Scheme, PVNR Kanthanapalli Sujala Sravanti and Sripadasagar Yellampally LIS be declared as national projects, the Chief Minister said.

Dr Reddy said there had been a major improvement in the financial position of the State due to proactive measures taken up by the government since 2004-05. He reminded that the Gross State Domestic Product, which was hovering around 3.3 per cent in 2002-03, reached the maximum of 8.3 per cent in the very first year of the Congress government in 2004-05. This was against the national GDP of 7.5 per cent. Since then, the State has been sustaining the growth rate in GSDP consistently, he pointed out.

He said sustained growth rate was possible because of the initiatives taken by the state government such as Jalayagnam, free power supply to 30 lakh agriculture pump sets, interest subsidy on crop loans to lakhs of farmers, Rajiv Aarogyasri Community Health Insurance Scheme for around 6.5 crore people, Emergency Health Transport Service, Indiramma Weaker Section Housing Programme for 40 lakh beneficiaries, fillip to eight lakh Self Help Groups, supply of rice at Rs 2 a kg, pulses at Rs 30 a kg and vegetable oil at Rs 35 a kg for more than 1.87 crore beneficiaries, disbursal of monthly pensions for 71 lakh people, saturating scholarships for all eligible students among the BCs, SCs, STs and reimbursement of tuition fees to all eligible students among the BCs, minorities and the disabled constituting about 33 lakh. Besides, the State was benefited from implementation of the recommendations of 12th Finance Commission.

There was an increase in the share of Central taxes from 29.5 per cent to 30 per cent and the Centre had waived the State’s outstanding debt of Rs.2592.47 crore, besides providing an interest relief of Rs.2022.40 crore during 2005-09. The enactment of Fiscal Responsibility and Budget Management (FRBM) legislation by the State also led to improvement of the State’s finances.

He said the State would specifically request the 13th Finance Commission for a higher resource transfers from the Centre and ask it to take into account the factors and priorities of the State government while assessing the quality of expenditure. “Rather than going by the trends in the last four years, the Centre needs to make a realistic assessment of revenue flows in the coming years, taking into account the gigantic schemes being implemented in Andhra Pradesh,” the Chief Minister said.