The Hindu Business Line : AP will soon be zero-deficit State

Backed by a stringent fiscal discipline regime, Andhra Pradesh has become eligible to get incentives of over Rs 3,800 crore from the Centre and is poised to become a zero-deficit State by 2009.

The gain will be in the form of various incentives that accrue to the State for bringing about discipline in public expenditure in tune with the Fiscal Responsibility and Budget management (FRBM) Act.

Speaking to reporters here on Thursday, the State Finance Minister, Mr K. Rosaiah, said that the Union Government was expected to release this amount in instalments for the three-year period ending 2007-2008.

No overdrafts

The State Government did not seek overdrafts or ways and means resources even for a single day over the last three years. This was in spite of heavy commitments made in massive programmes such as Jalayagnam irrigation-related projects and Indiramma housing schemes.

Significantly, all these fiscal measures and prudent fiscal management were expected to reduce the revenue deficit of the State Government to zero by March 2009, Mr Rosaiah explained.

World Bank funds

Mr Rosaiah stated that even though the State Government had to secure funds from the World Bank, they were infused into creation of new assets unlike the previous regime, which used such funds to provide ‘cosmetic touch’ to the economy.

As per estimates, assets worth Rs 1.02 were created with every rupee taken by the Dr Y.S. Rajasekhara Reddy Government, as against assets of 46 paise out of every rupee during the previous Government.

Mr Rosaiah denied the charge made by Telugu Desam members that Ministers and Congress MPs and MLAs had acquired huge assets resorting to corrupt practices.

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