Andhra Pradesh Finance Minister Yanamala Ramakrishnudu has requested the Centre to make budgetary provision to all the commitments it made in the A.P. Reorganistion Act as well as on the floor of the House during bifurcation of the State.
During the Pre-budget meeting with State Finance Ministers held under the chairmanship of Union Finance Minister Arun Jaitley at New Delhi today, he said “The time has come to do away with plan and non-plan expenditure and instead resort to revenue and capital budget system as is practised in many countries. This may be expedited.”
He said unless states are stronger economically, country cannot be strong. The Centre must strengthen the economics of states by better devolution of resources.
Ramakrishnudu said infrastructure and industry focus is crucial. Without good infrastructure, investments do not come and employment and value addition to primary sector comes to a halt. Therefore, incentives to promote infrastructure is essential at the state as well as national level.
Referring to AP, he said its growth suffered in the recent past and many new problems arose because of the reorganisation of the state. The Centre should help the residuary state liberally to overcome these difficulties.
While hoping that the 14th finance Commission would address State grievances, he said that unless Fiscal responsibility and Budget management (FRBM) Act relaxations are given for a specific period, it becomes difficult to focus on infrastructure development. Whatever revenue accrues to the state, it ends up as revenue expenditure.