AP seeks Rs 30k cr under grants-in-aid

• Commission help sought to fill up critical gaps in medical, health and education
• Consider SCSP, TSP and Bangaru Talli while granting funds, panel told

‘The appointment of FFC has come at a time when states are witnessing deceleration in the growth of their economies’

Hyderabad: The State government requested the 14th Finance Commission (FFC) to consider the social welfare and other human development projects being implemented in the State while devolving funds under Commission. In its memorandum submitted to FFC on Thursday, the government said that there are critical gaps in number of sectors, which have not been adequately met because of budgetary constraints. Such gaps have been identified in health, education, drinking water, welfare of SCs and STs, police jails and judicial administration.

The State government proposed before FFC to allocate Rs 30,425.71 crore under grants-in-aid to 20 different heads, including maintenance of forests, infrastructure support for the livestock sector, seed development, urban water supply in Chittoor town, strengthening of public distribution system, education to SCs, maintenance of roads and bridges, drinking water in rural areas and disaster management capacity development. The State asked Rs 11,153 crore for development of scheduled areas in Andhra Pradesh.

The government said that the fiscal situation of the State has been under stress with the deceleration in the economic growth and decline in the transfers from the Centre as a percentage of Gross State Domestic Product (GSDP) and adherence to Fiscal Management and Budgetary Management (FRBM) targets may not necessarily construed as an indicator of the soundness of State finances.

The memorandum said, “AP has taken a number of initiatives aimed at promoting inclusive growth. The first of its kind initiatives were the enactment of Scheduled caste Sub-Plan and Tribal Sub-Plan Act, 2013 to accelerate the development of SCs and STs in the State and the enactment of Bangaru Talli Promotion and Empowerment Act.” The State is confident that the Commission would address the concerns of the States adequately and ensure that Centre-State fiscal relations were restored to an even keel keeping in view the Constitutional division of responsibilities and the objective of achieving inclusive growth.

The appointment of FFC has come at a time when states are witnessing deceleration in the growth of their economies and consequent lower growth of revenues.

The government in its memorandum said, “Inclusion of ‘consideration items; in the terms of reference of the Commission that are not even-handed between the Centre and the States has created an apprehension among the States that this would go against their interests. We appeal that such ‘consideration items’ not be taken as binding constraints on the working of the Finance Commission.”