The Hindu Business Line : AP Govt won't be slave to World Bank: Rosaiah

THE Andhra Pradesh Finance Minister, Mr K. Rosaiah, has said that the World Bank is just a lender and that the State would not be a slave to the bank.

Speaking to newspersons on Monday, he said that the Congress had never said that it was against taking loans from the bank. "We always wanted the Government to spend the amounts on constructive and developmental projects."

Refuting the Telugu Desam Party charges, he said that the one-year-old Congress Government had not yet received any loan from the Bank.

"Where is the question of conditions when we don't even get a loan? We have just approached the Centre to recommend our proposal to the bank."

He also said that it was the 12th Finance Commission and not the bank that imposed certain conditions on the States - some of the important ones being enactment of fiscal reforms, and elimination of revenue and fiscal deficits.

"We are not approaching the bank for loans to wipe out revenue deficits. The loan amount would be spent on developmental works," the Minister said.

Citing the example of the Channa Reddy Government's effort to get World Bank loan for reconstruction, he said that the State could convince the lenders and got a loan of Rs 713 crore. Incidentally, Mr Rosaiah held the Finance Ministry then too.

"We strengthened the drainage system in the Krishna-Godavari basin. We spent Rs 161 crore on building power infrastructure. Roads too were developed. This had helped the State increase farm productivity."

Asserting that there was no going back on reforms, Mr Rosaiah said that the Government had sought World Bank lending for infrastructure projects and urban reforms.

It has prepared a project report to seek Department for International Department grant to the tune of Rs 700 crore to support the health sector.

The World Bank has also shown interest in funding irrigation projects. "There are others too who are keen on joining the projects. We will weigh all options."

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