Austerity in AP; Ministers told to tighten belt

Highlights

Hyderabad: Austerity in AP; Ministers told to tighten belt, The cash strapped Andhra Pradesh government has decided to adopt austerity measures to tide over financial crisis being faced by the state after bifurcation.

  • No meetings at Star hotels
  • Fly by economy class, if at all needed
  • Nominated posts on Corpns, Boards put on hold
  • Budget session by the end of July
  • Govt still keen on farm loan waiver


Hyderabad: The cash strapped Andhra Pradesh government has decided to adopt austerity measures to tide over financial crisis being faced by the state after bifurcation. Hinting that the government would be going in for tough economic measures, Chief Minister N Chandrababu Naidu on Saturday told his ministers and heads of departments to curb all unwanted expenditure.

He told them that unless the government tightens its belt, it will not be able to put the state’s economy back on track. Following the instructions of Naidu, Finance Minister Y Ramakrishnudu prepared a detailed report listing out the measures the government should take to reduce financial burden on the state exchequer.
According to sources, henceforth even Ministers should, to the extent possible, avoid travel by air and if it becomes inevitable, they should travel in economy class. The HoDs can also fly by economy class only if it was necessary like attending meetings at the Centre etc.

The report also recommended that no review meeting of any department should be held in star hotels. Though the infrastructural facilities are not proper in the secretariat, review meetings should be held in the secretariat only. Sources said that the government was also contemplating to put on hold the selection of nominated posts in the Corporations and Boards for some time to reduce the financial burden.

Ramakrishnudu said that the government had also initiated measures to see that the revenue earnings of the state would improve at the earliest. He said officials of Commercial Taxes department were holding talks with the Centre on the implementation GST (Goods and Service Tax) and its effect on the income to the state. The government was demanding more shares from the GST as the taxes were the only revenue resource for the state in the present situation.

Stating that the government was planning to hold the budget session sometime around the last week of July, the minister said the Chief Minister was committed to implement the loan waiver scheme for farmers and was working out different options to implement the scheme without any hassles for the state as well as the farmers in future.

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