Southern States - Andhra Pradesh-Hyderabad   

Cong., TDP plead for greater assistance to State

By Our Staff Reporter

HYDERABAD Aug. 22. Political parties deposing before the Twelfth Finance Commission here on Friday demanded enhancement of States' share of Central taxes from the present 29.5 per cent. They also demanded special consideration for "States like Andhra Pradesh'' but for diametrically opposite reasons. The Telugu Desam Party argued for incentives for "progressive States'' like Andhra Pradesh, while the Congress wanted special help to for States with "deteriorating finances.''

The Leader of the Opposition, Y.S. Rajasekhara Reddy, argued that the State finances were in the doldrums with outstanding debt growing more than five times in the past nine years and the Government borrowings are going to meet only revenue deficit and to repay the interest on old loans. He pointed out that the Gross State Domestic Product had grown much slower than the national average and the State's National Human Development Index position had slipped from nine to 10, according to the Planning Commission figures.

Dr. Reddy further pointed out that "fall in public investment in important sectors like the irrigation, infrastructure and industry'' had resulted in agricultural stagnation and large-scale closure of industry. He argued for a strong link between public investment and private investment and said that unless greater financial resources were made available for the States for public investment, private investment too would suffer.

Dr. Reddy wanted the Commission to consider higher weightage to States which take up agricultural reforms and called for incentives for success in raising agricultural productivity. He also argued for interest waivers or reductions and debt relief to States, like AP, whose debt to GSDP ratio is high. He also wanted the Commission to direct the State Government to implement the decisions of the State Finance Commission on devolution to local Government bodies.

Ummareddy Venkateshwarlu, MP and TDP spokesman, argued for greater financial incentives to States which have positive achievements and listed growth in literacy, falling fertility, lowering poverty levels and increase in green cover as points which should be rewarded. He also argued for greater "flexibility'' in the allotment for grants for central schemes and said that tying up funds for specific schemes ignored local contexts. "Block grants'' for Centrally-funded schemes would be more effective, he said.

In his representation, Majlis floor leader in the Assembly , Asaduddin Owaisi, said that the State's finances were in a perilous condition and asked for greater devolution of central funds to the States. He supported much of the State Government's demands.

The BJP State president, N. Indrasena Reddy, told The Hindu that the BJP could not make its presentation to the Commission since it got the invitation only at 4 pm "due to a communication gap.'' CPI(M) sources too said that they had not received any invitation, even though their MLA had been invited.

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