The Hindu Business Line : All-round growth has raised AP credit rating, says CM

‘Efficient fiscal management in the last five years has resulted in revenue surplus of Rs 16,000 crore in spite of capital expenditure of Rs 69,450 crore.’

Our Bureau

Hyderabad, June 10

The Andhra Pradesh Chief Minister, Dr Y.S.Rajasekhara Reddy, today said that the State’s credit rating has gone up significantly because of prudent fiscal management and various developmental activities in the last five years.

However, in spite of the higher credit rating by independent agencies such as Crisil, the State’s borrowings have been very less, Dr Reddy said.

Replying to a motion of thanks to the Governor’s address in the State Legislative Assembly, Dr Reddy said that efficient fiscal management in the last five years had resulted in revenue surplus of Rs 16,000 crore in spite of capital expenditure of Rs 69,450 crore. As against borrowings of Rs 8,687 crore in 2004-2005 when the capital expenditure was Rs 26,860 crore during the TDP rule, in 2008-2009, the State borrowed only Rs 9,086 crore when the capital expenditure was Rs 65,000 crore, Dr Reddy said, explaining that the borrowings were not indiscriminate.

Welfare schemes

Referring to various welfare measures, the Chief Minister said that the Government would continue them so that everyone in the State benefited from them. Citing the case of Women’s Self-Help Groups (SHGs), Dr Reddy said that in the last five years, disbursals to these SHGs had gone up to Rs 20,000 crore.

In addition, the ‘Pavala Vaddi’ scheme which offers loans at subsidised interest rates, has helped these women SHGs to take up new projects and thereby become self-reliant. Nearly 1.25 crore Dwcra women are part of women SHGs.

Higher growth

The last five years witnessed higher growth rates than the national average. If the share of IT services exports was 8.6 per cent of the country’s total IT exports during 2004-2005, this has gone up to 14 per cent in 2008-2009. This is no mean achievement, as a growth of this nature brings in cascading effect on the economy, he said.

Due to seven hour power supply to the farm sector, Dr. Reddy said that the State’s foodgrain output has gone up from average 137 lakh tonnes during 1999-2004 to 170 lakh tonnes in the last five years.

Sounding a positive note on the State’s economy and its growth prospects, Dr Reddy cited the Prime Minister, Dr Manmohan Singh’s statement that 9 per cent growth rate is achievable over the next three years.

More Stories on : Economy | Credit Rating | Andhra Pradesh

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