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Addressing the 14th Finance Commission members in their visit to Tirupathi, Naidu said: "we are having the problem. While by having this problem in the last 100 days, I sat with my officers, cabinet colleagues to review the situation. We are planning what we have to do, that is why at that time I have prepared Vision 2020 Document, so many developments have taken place in the recent past including technology developments, resources, country's financial position has changed".
"We want to place Andhra Pradesh on high growth trajectory, accelerate social and economic developments, boost infrastructure and industrial development, drought proofing of Rayalaseema, backward region development, poverty elimination and social empowerment. This we want to achieve before 2018-19," said Naidu.
He added that by 2022, Andhra Pradesh would become one among three premier states in the country, when it celebrates 75th anniversary of Independence.
The state's strength and opportunities are abundant natural resources, fertile land, long sea coast, mineral wealth including bauxite, gas, coal and others, water resource also. According to Naidu, the state has enterprising farmers and also diversified cropping system and if value addition has been done, farmers will get better benefits.
| Projections 2015-20 (in Rs crore) | |||||||
| 2014-15 | AP | 15-16 | 16-17 | 17-18 | 18-19 | 19-20 | |
| Own Tax Revenue | 46,409 | 39,813 | 41,573 | 44,638 | 47,938 | 51,490 | 55,565 |
| Transfers from Centre | 45,670 | 41,755 | 31,441 | 35,060 | 39,173 | 43,484 | 49,165 |
| Revenue Expenditure | 98,142 | 87,475 | 1,01,043 | 1,12,307 | 1,25,014 | 1,38,969 | 1,55,077 |
| Capital Expenditure | 7,922 | 7,424 | 9,354 | 8,632 | 7,752 | 6,723 | 5,183 |
| Capital Receipt | 12,403 | 9,845 | 40,651 | 44,671 | 49,257 | 54,136 | 59,502 |
| Revenue Deficit | -6,064 | -5,909 | -28,029 | -32,609 | -37,903 | -43,630 | -50,347 |
| Fiscal Deficit | -12,064 | -11,489 | 37,038 | -40,905 | -45,168 | -49,864 | -55,040 |
| Source: Presentation made to 14th Finance Commission of India by Andhra Pradesh Chief Minister | |||||||
"In primary schools we are weak for which we have to lay the foundation now," said Naidu.
The State has chalked out seven missions, which include improving primary, urban development, industry, agriculture, services and social sector and skill development. Five grids - water, road, power, gas and fibre. The five campaigns to be pursued are taking the farmers back to the field, water conservation, personal hygiene, poverty alleviation and programme to minimise school dropouts.
Addressing the reporters, he said that the meeting of the Finance Commission was held at Tirupathi since it was not proper to hold the meeting at Hyderabad, which is the capital of Telangana and Andhra Pradesh's proposed capital Vijayawada is going through an election and it would be improper to conduct the meeting there at this point of time.
Rs 4 lakh crore would be required to build a capital city for the State and establish effective communication network between the capital and the remaining parts of the state.
The commission may award a special grant of Rs 1,00,213 crores during the next five years to enable the state to build a modern capital city. It also asked for Rs 41,253.74 crores as special grant for creating multiplier effect by expanding growth and employment opportunities, improving the quality and quantum of public services and strengthen the capacity of the governance system.
Emphasis was given on three promises the centre has earlier given, special status to Andhra Pradesh, special financial package for the seven districts and special incentives for the industry.
"State requires financial support to compensate disequilibrium created by the state's bifurcation and kickstart the growth momentum. Critical gaps exist in a number of sectors that have not been adequately met because of budgetary constraints, which are accentuated following bifurcation," said the State Finance Department's presentation to the Finance Commission, a copy of which is available with Business Standard.
The state also requested the Finance Commission to recommend speedy implementation of GST and compensate the state adequately in the initial years. The funding for natural calamities, the centre has to increase its funding from the current 75% to 90%, considering the frequency of various calamities hitting the State. The Centre should also increase this by 15%every year, he added.
