The Hindu Business Line : AP records 17.5 pc revenue growth

DEBT swapping, cutting down on wasteful expenditure and pepping up tax collections have helped Andhra Pradesh record a growth of 17.53 per cent in revenues during April-November period of this fiscal.

The State's own revenues (both tax and non-tax revenues) went up to Rs 11,180.61 crore during April-November 2004 as against Rs 9,513.17 crore in the previous year.

According to Mr K. Rosaiah, Finance Minister, this was possible without slapping new taxes or hiking the existing tax rates. "We have promised that we will bring in financial discipline to reduce financial deficit," he said.

The Minister announced this participating in the first in the series of `Samachara Sravanti' (stream of information) launched by the Information and Public Relations Department. The series was aimed at providing information on different Government departments.

"After we took over in May last, we took effective steps in resource mobilisation, expenditure management and prioritisation and management of fiscal imbalances," he said.

"Improvement of fiscal health became the foremost on our agenda," he said.

Including the share from Central taxes and grants, the total revenue receipts had gone up to Rs 16,303.28 crore (Rs 13,954.72 crore), a growth of 16.83 per cent. "See this against a growth of 7.5 per cent in the previous year," he said.

While cutting down on non-plan and wasteful expenditure, the Government significantly increased expenditure in the four priority sectors of irrigation, revenue, food and civil supplies and agriculture.

"We have spent Rs 1,350.81 crore on irrigation as against Rs 1,082.72 crore," Mr Rosaiah said.

On agriculture, the Government spent Rs 510.59 crore (Rs 453.19 crore).

The Government could save Rs 239 crore thanks to debt swapping of loans to the tune of Rs 3,557 crore.

Encouraged by the recovery in fiscal position, the Government saw a growth of 5.5 per cent in Gross State Domestic Product during 2004-05.

"Economic growth rate of 5.7 per cent during the Ninth Plan fell to 4.8 per cent in the first two years of the Tenth Plan. The reduction was due to decline in agriculture sector and not so impressive growth in the manufacturing sector," Mr Rosaiah said.

He also forecast a growth of 6.8 per cent, with an impressive growth of 7.1 per cent in construction sector.

Services sector too promised good signs. "It is expected to growth at 6.8 per cent, with information and communication sector poised a growth of 20.7 per cent," the Minister said.

Despite a dip of 23.2 per cent in rainfall during southwest monsoon period, grain production would reach last year's levels, he hoped.

To look at `other' options if World Bank declines loan

THE Andhra Pradesh Government has decided to tap alternative financial sources if the World Bank declines to approve the structural adjustment loan.

Addressing a press conference here on Monday, Mr K. Rosaiah, said a team of Bank representatives would come to Andhra Pradesh on a ten-day visit, beginning on January 9.

"We will hold talks with them. It is okay if they approve the loan. Else, we will think of other options," the Minister asserted.

On the issue of pay revision to the Government employees, the Finance Minister said the Government would take a decision on receiving the report of Pay Revision Commission.

He said the Government had introduced contributory pension scheme. "All the employees who joined the Government service after September 1, 2004, would come under this scheme. While employees pay a monthly contribution of 10 per cent, the Government will contribute a matching amount," he said.

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