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Need to discuss devolution of funds: Naidu

V.Rishi Kumar

HYDERABAD, Aug. 1

THE Andhra Pradesh Chief Minister, Mr.N.Chandrababu Naidu, has said that there is a need to deliberate on the contentious issue of devolution of funds as the recommendations of the Eleventh Finance Commission have come as a major setback for some States including Andhra Pradesh.

Mr. Naidu spoke to Business Line on issues relating to the Eleventh Finance Commission, power sector reforms and his pet subject -- women's empowerment. Excerpts from the meet.

On Eleventh Finance Commission:

It is ironical to note that all those states which have taken corrective measures to reform the State finances and managed to bring down their revenue gap are now at the receiving end of the Commission's recommendations. For instance, efforts of the Sta te Government to bring down the poverty level through targeted programmes has, in fact, become counter-productive for a State like ours.

The recommendations of the Commission would have adverse effect on the State's meagre resources and in the long term the State will not have even a rupee. While States like Uttar Pradesh, West Bengal and Bihar, will have better revenue inflows based on t heir revenue deficits, Andhra Pradesh, Tamil Nadu, Maharashtra, who have taken up several developmental works, would suffer.

There is only one way out. The nation will have to deliberate and debate the recommendations and initiate corrective measures.

On State Finances:

If you look at the 11th Finance Commission report and compare finances of various States, it would be clear where Andhra Pradesh is heading. As reflected in the report, we are better than others. Ironically, this has in fact had adverse affect on the flo w of funds going by the recommendations of the Commission.

On power sector reforms:

Soon people would realise the benefits of the reforms. By next year people would appreciate and benefit since they will have a more stable power sector in the State.

Opposition to power tariff hike would wane away once they reason the reforms. They would realise reforms are the ultimate solution to the present crisis in the power sector in the country. It would not be possible for the State to provide the kind of sub sidy required in the sector at the cost of other departments. If we keep subsidising power, what will happen to other departments.

On opposition from political parties:

I appeal to them to cooperate and make development works a success as they are meant for the people and not for one political party. Already several States are looking at adopting Rythu Bazar's and seven states have enacted Water Users Association Act.

On request by a political party for a ballot on power tariff hike.

Have you ever seen a ballot on taxation measures anywhere in the world ? Even China is witnessing sweeping economic reforms. While Congress party supports reforms in the country, they oppose them in the State. Is this not doublespeak ?

I am prepared to remove the name Telugu Sena from the youth wing of the TDP. Why all this fuss about a non-existent body ? I reiterate the Government resolve to go ahead with development works overlooking the opposition.

On women's empowerment:

A State Level Bankers Committee has been constituted to provide thrust to women's empowerment programmes. The thrift movement in Andhra Pradesh, which comprises more than 3.38 lakh Thrift Groups covering over 48 lakh women, has now achieved a total corpu s of Rs. 650 crores and this is expected to go up to Rs.1000 crores next year.

The 13th Janmabhoomi programme is aimed at women empowerment through emphasis on micro credit, creation of better marketing network for women self help groups represented by DWCRA and DWCUA, and thrust for education and healthcare.

Any society which ignores women will decay. From the beginning our effort has been to empower women and create an environment where equal opportunities and rights are provided for them. Towards this end, already Andhra Pradesh has extended 1/3 reservati on for women in employment and a Women's Commission has been set up. Now we have embarked upon the process of political empowerment of women which will begin from panchayats.

In an effort to empower women, the State has already distributed seven lakh LPG connections in the rural and urban areas of the State and we plan to distribute four lakh more connections to women in the next two months. In addition to this, we plan to pr ovide 50,000 smoke-less `chulas' (stoves) in each district and this is expected to be a little over 11 lakh in the State.

The Government's initiates for women's empowerment in the last year are showing results and we expect to consolidate these gains by politically empowering them. We plan to give them greater representation in the panchayat elections.