The Hindu : Cabinet okays sops proposed at Mahanadu

Online edition of India's National Newspaper
Friday, Jun 06, 2003

Southern States

Southern States - Andhra Pradesh

Cabinet okays sops proposed at Mahanadu

By Our Special Correspondent

HYDERABAD JUNE 5. The Cabinet today put its formal seal of approval for the multitude of welfare measures proposed by the Telugu Desam Party at its Tirupati Mahanadu last week to benefit an estimated one crore people of Andhra Pradesh.

In what is considered as the biggest-ever package of sops in the recent past, the Cabinet virtually showered benefits on farmers, women, youth, minorities, backward classes, rickshaw pullers, scheduled castes and tribes.

The `one crore boons,' as they have come to be known, range from distribution of two lakh bicycles free of cost to girls belonging to below poverty line families to sports kit for the rural youth.

Sitting in a marathon seven-hour session, interrupted by an hour-long lunch break, the Ministers approved a package of over Rs. 700 crores for the farmers alone in the form of interest waiver, seed subsidies and outright grant. Next in the line of beneficiaries will be the Backward Classes community who will receive benefits to the tune of Rs. 228 crores but the details have been left to a Cabinet Sub-Committee headed by the Finance Minister, Y. Ramakrishnudu.

The Chief Minister, N. Chandrababu Naidu, who briefed the media about the Cabinet decisions, said the total drain on the exchequer was yet to be computed but asserted that it would not touch the Rs. 3,000-crore mark.

Mr. Naidu asserted that funding for this package would pose no problem since money would come from several sources like NABARD loans, contributions by thrift groups, assistance from the Centre and the State Government's own treasury.

He maintained that his Government would resort to `re-appropriation' of the budget only as the last resort.

Defending the `freebies, which cover virtually every section of people that can be classified under `weaker sections,' the Chief Minister held that the Cabinet had not violated any Constitutional provision by announcing such a comprehensive package barely two months after approval of the budget. "In a democracy, the Government has every right to make changes in its policy. Moreover, the TD Government must also abide by the party's decisions,'' he added.

At the same time, he sought to emphasise that his Government would not retract from the path of economic reforms. It would continue to drive the public sector undertakings and municipalities to continue their efforts to improve efficiency and become self-sufficient. Welfare measures, he said, were not antitheses to reforms.

Mr. Naidu said farmers needed assistance because they were reeling under one of the severest droughts in several decades.

At the same time, he saw nothing unusual in giving away other benefits like bicycles and sports kits on the ground that `Velugu', the anti-poverty programme of the Government, already had provisions for such giveaways.

The relief package for farmers includes waiver of interest and penal interest amounting to Rs. 373 crores on long, medium and short-term loans, grant of Rs. 100 crores towards crop insurance, Rs. 118 crores for seed subsidy and soil enrichment besides financial assistance for 2 lakh self-help groups of farmers - Rythu Mitra - to be constituted soon.

Mr. Naidu said he was anticipating the sanction of Rs. 150 crores from the Centre towards crop insurance.

He said the Cabinet took serious note of the alleged violations of the river water agreements by the Karnataka Government.

It resolved to bring pressure on the Centre to prevail upon Karnataka to stop construction of Paragodu, Nagulamadaka and Upper Tunga projects.

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