The Hindu Business Line : AP poised for double-digit growth in 2007-08

Andhra Pradesh is poised for a double digit annual economic growth during 2007-2008, as against national average of about 8.7 per cent, the Governor, Mr Narayan Dutt Tiwari — delivering his maiden address to the joint session of the State Legislative Assembly and Council at the start of the Budget session — said, amid protests.

Some TRS members tore the speech copy. Mr Tiwari said the State recorded a growth rate of 8.87 per cent for the year 2006-2007 and was poised to achieve 10.37 per cent growth during the current fiscal.

As per advanced estimates, the State has achieved an average annual growth rate of 8.73 per cent for the four-year period, including the current year, as against a 5.79 per cent growth for the period 1994-2004.

Performance

Complimenting the State administration for its economic performance, the Governor said that this is the highest-ever growth rate achieved by the State for any four-year period, since its formation. However, he expressed the need to substantially improve infrastructure.

The State had suffered a revenue deficit of Rs 21,994 crore for 10-year period of 1994-2004 and the borrowings intended specifically for investments in productive assets were diverted to meet deficit. The asset liability ratio was lower leading to a debt trap.

However, the State has achieved a revenue surplus in 2006-2007, two years before what is mandated in the Fiscal Responsibility and Budget Management (FRBM) Act, 2005. On the Government’s thrust on agriculture and irrigation sectors, Mr Tiwari said during the current year, two more important projects at Dummugudem to Nagarjunasagar tail pond project and Pranahitha-Chevella mega irrigation projects were taken up.

Apart from strengthening minor irrigation works, the Government has laid thrust on modernisation of delta system. This includes Godavari delta (Rs 3,361 crore), Krishna delta (Rs 4,573 crore) and Tungabhadra high level canal (Rs 463 crore). The additional irrigation potential created in the State has already resulted in increased production and productivity of agricultural crops. The foodgrain production is expected to touch 180 lakh tonnes, up from 137 lakh tonnes in 2003-2004.

Referring to the State Government’s promise of free power, the Governor said that the Government is supplying about 1,300 crore units of power per annum free to the farm sector and has set aside Rs 2,698 crore for purchase of additional power. With the Reliance Industries Ltd set to supply gas from the KG Basin, additional four crore units of power per day will be generated from the stranded plants.

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