Bifurcation Left AP With No Resources: Yanamala

Finance Minister Yanamala Ramakrishnudu blamed the bifurcation of Andhra Pradesh for the economic crisis in the residuary state.

"While the united state of Andhra Pradesh had been a revenue surplus state, the division made the residuary state a huge revenue deficit state. There has been a huge impact of the state's bifurcation on the state's finances, and the state is not even left with reasonable resources for a meaningful plan outlay," he said while presenting the state's budget for the financial year 2015-16 in Legislative Assembly on Thursday.

"The provisions made in the A P Reorganisation Act 2014 for the development of the state of Andhra Pradesh signify tokenism, and they are not any compensation for the loss of opportunity for the people of Andhra Pradesh due to the division of the state. Income generation and employment opportunities, health and educational institutions, R&D and training facilities, and social infrastructure are grossly inadequate in the new state. The decision to bifurcate the state without even finalising the capital city itself signifies irresponsibility," he said.

The Finance Minister said that even after taking into account the devolution on account of the 14th Finance Commission's recommendations and the expected resource flow from the Union Budget 2015-16, the state would continue to reel under a revenue deficit, and this deficit would continue even after the last year of the award of the 14th Finance Commission.

"Our debt burden and fiscal deficit will continue to increase as we keep borrowing to meet revenue expenditures," he said.

"We had requested the 14th Finance Commission to provide us with a grant of Rs. 1,00,213 crores for capital construction and Rs. 41,253 crores for other critical infrastructure requirements. It provided only Rs. 22,113 crores as a revenue deficit grant and Rs. 1,823 crores towards disaster management. As against the requirement of Rs. 29,805 crores for Urban Local Bodies projected by us, only Rs. 3,636 crores has been provided, and for rural local bodies as against the requirement of Rs. 18,633 crores, only Rs. 8,654 crores have been provided," the Finance Minister said.

"Our own tax and non-tax revenues are barely sufficient to meet our salary, pension and non-salary expenditure commitments. Our non-tax resource base is very low. The 14th Finance Commission did not consider the special problems faced by the successor state of Andhra Pradesh on account of the bifurcation," he said. (INN)