Date:20/11/2008 URL: http://www.thehindu.com/2008/11/20/stories/2008112060580600.htm

Andhra Pradesh

Revenue from land sale falls short of target

Special Correspondent

State not to approach RBI to tide over crunch: Rosaiah

State in no mood to resort to distress sale of lands
No downsizing of departmental budgets, allocations

HYDERABAD: Finance Minister K. Rosaiah admitted on Wednesday that the revenue from sale of lands had fallen short of the Rs. 12,000 crore target projected by the government in the annual budget for 2008-09.

Dismissing speculation about government facing a severe financial crunch, he said the revenue from sale of lands was a mere Rs. 3,000 crore.

Added to this, revenues of the Union government too tumbled, leading to a corresponding fall in the flow to the State from the Central pool.

“But we are neither discouraged nor prepared to resort to distress sale”, he said.

The government would wait till the value of lands identified for sale showed an upward trend.

Financially healthy

Talking to The Hindu here on Wednesday, the Finance Minister insisted that the State remained financially healthy and made it clear that the government did not approach the Reserve Bank of India or World Bank to get assistance to fill the deficit caused by revenue shortfall.

The State finances would be well within the limits prescribed under Fiscal Responsibility & Budget Management Act.

“In spite of the difficulties, we will fulfil the entire Rs. 1 lakh-crore budget proposed for 2008-09 without tapping the RBI for overdraft or ‘ways & means’. A mid-term evaluation would be made shortly”, he said.

He assured that allocations to different heads would not be downsized and budgeted amounts would be provided to the last rupee for welfare schemes and housing and to the maximum extent for irrigation.

Mr. Rosaiah said the government would make some internal adjustments while presenting the supplementary budget for the year during the next session of the Assembly to cover up the gaps.