Financial condition good - CM Rosiah

[katharnak]

Hyderabad, Oct 4: The Chief Minister, Mr K Rosaiah, today expressed satisfaction over the financial position of the State as well as the progress of the external-aided projects. He directed that not a single ongoing programme be allowed to suffer for want of finances. He directed the Finance Department to release funds as per the requirement to various schemes.

The Chief Minister has complimented the Finance Department for its judicious management and spending of funds. He was happy that the mobilisation of resources from various departments so far this year was good. He reiterated that all developmental and welfare schemes launched by his predecessor Dr Y S Rajasekhar Reddy will be continued vigorously. All priority welfare schemes like the Aarogyasri, free power supply to farmers, tuition fee reimbursements, Rs 2-a-kg rice scheme will be implemented vigorously. The Chief Minister also asked the Finance Department to maintain utmost discipline and prudence in expenditure so that the State finances are on a strong footing.

The Chief Minister, who also reviewed the external-aided projects directed the Finance Department to expedite finalisation and approval of various projects to be sent to different International Institutions. He expressed satisfaction that there has been improvement in the collection of taxes and the other major sources of revenue such as Commercial Taxes, Excise, Transport and so on. The revenue mobilisation from April to the end of August this year have recorded a growth of 19.7% over the figures for the corresponding period last year. The Chief Minister directed the Finance department to ensure that all the concerned departments step up efforts to achieve their targets.

The Special Chief Secretary, Finance, Mr G. Sudhir, apprised the Chief Minister about the release of funds for the various schemes during the current financial year. Rs 1,814 crores has been released to APTransco towards power subsidy. An amount of Rs 1,500 crores has been released for the Rs 2-a-kg. rice scheme to the Civil Supplies Department for supply of rice to the white card holders. An amount of Rs 541 crores has been released so far towards the most popular Rajiv Arogyasri Scheme as against the budget provision of Rs 925 crores in the current year.

For Indiramma pensions for senior citizens, widows, disabled persons and so on, an amount of Rs 1,449 crores has been released. An amount of Rs 911 crores has been released this year for Indiramma Housing Programme out of the budget provision of Rs 1,800 crores. “Abhaya Hastam” is a co-contributory pension scheme for women beneficiaries in the age group of 18 to 60 years and the scheme is implemented through the Life Insurance Corporation of India. An amount of Rs 110 crores has been released so far out of the budget provision of Rs 220 crores.

The officials told the Chief Minister that Rs 649 crores has been released to Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) as against the budget provision of Rs 300 crores towards matching State’s share. Towards the matching State share under Sarva Shiksha Abhiyan (SSA), Rs 537 crores has been released which includes Rs.187 crores relating towards previous year. The provision in the budget was Rs 350 crores. Rs 90 crores has been released under Rashtriya Madhyamika Shiksha Abhiyan (RMSA) towards matching State share as against the budget provision of Rs 75 crores this year and Rs 237 crores has been released to universities including the new universities.

The Chief Minister was informed that Reimbursement of Tuition Fees and scholarships to all the eligible students belonging to SCs, STs, BCs, Minorities, EBCs and Disabled categories has been taken up on priority and an amount of Rs.1,836 crores has been released clearing the arrears.  Pavala Vaddi Scheme for the Self Help Groups of women enables them to take up various economic activities by accessing bank credit.  Rs.270 crores has been released as against the budget provision of Rs.200 crores. So far Rs.744 crores has been released to the Roads and Buildings Department for taking up various road works and highway projects. Funds are also regularly being released for Irrigation Projects.

Officials said Rs.200 crores has been released towards the Godavari water supply scheme to Hyderabad Metro Water Supply and Sewerage Board (HMWS&SB) under the Urban Water Supply Scheme. The Government also sanctioned Rs.150 crores for the second phase of the Multi Modal Transport System (MMTS) in the State Capital and Rs.377 crores has been released under Rural Water Supply Scheme and Rs.479 crores under Rural Sanitation campaign. The Government has taken very effective steps during the "LAILA" cyclone in May this year which helped to minimise the damage to life and property of the people of the concerned areas. Action was taken promptly to sanction Rs.396 crores for various departments to launch relief, repair and restoration works immediately after the cyclone.The Chief Minister directed the Finance Department to give top priority for release of funds for welfare and development programmes to ensure their smooth implementation so that the benefits reach the people in time.


EXTERNAL-AIDED PROJECTS
The State government was implementing various externally aided projects with the assistance from the World Bank, Japan Bank for International Cooperation (now known as Japanese International Cooperation Agency--JICA) and KfW of Germany. At present, there are 13 projects under implementation in energy, rural development, irrigation, urban development, rural water supply and sanitation, roads sectors and so on. There are proposals for projects in the pipeline for improvement of energy sector, water supply and sewerage project of Hyderabad Metro Water Supply and Sewerage Board and the AP Rural Poverty Reduction Project (Phase-III).  In addition, proposal for permanent repairs of damage caused due to the heavy rains and floods of August, 2009 are also under consideration.  The Chief Minister directed the Finance department to expedite action for sending necessary proposals to the Government of India and the International agencies after examining their feasibility from the point of debt sustainability with respect to the State finances.

The Chief Secretary, Mr S V Prasad, Adviser to CM, Mr P. K. Agarwal, the Special Chief Secretary, Finance, Mr G Sudhir, the Secretary, Finance, Ms Vasudha Mishra, the Secretary, Finance, Mr Sekhar Babu, the Principal Secretaries to CM and other officials attended the meeting.