States Watch

Andhra Pradesh

Rs. 60-crore Relief for farmers

HYDERABAD: The Prime Minister, Dr. Manmohan Singh, on 1 July expressed his Government’s unflinching support to the distressed farmers of the State and announced release of Rs. 60 crores from the Calamity Relief Fund and Rs. 1.82 lakh tonnes of foodgrains under the food-for-work programmes.

This was part of a package of several relief measures that Dr. Singh unveiled at the Raj Bhavan with a day of interaction with farmers in Kurnool and Mahabubnagar districts besides political leaders and the Government.

The Prime Minister said some of the measures he had announced were his Government’s immediate response while others were part of a long-term strategy to revitalize the farm sector. "Our intention is to increase rural incomes and employment and improve the quality of life in the villages. These will be the focus areas of our Government," Dr. Singh.

Expressing sympathies with the families of farmers who committed suicide, Dr. Singh said while he was happy at visiting a State where his party had been voted back to power, he was, however, distressed that the reason for his visit was the crisis faced by farmers. "I recognize that Andhra Pradesh faces many problems, especially with regard to water management, which must be supported by the Centre, the State Government and financial institutions."

Dr. Singh expressed confidence that once the new Planning Commission was in place, the Centre would look into various options to open new chapters in history which would usher in social and economic change and, above all, eradicate poverty, hunger and disease which afflicts large parts of the State. After hearing political leaders who explained that the State was once called ‘Anna-poorna’, the Prime Minister said a second green revolution was needed in India. The Agriculture Commission headed by the eminent scientist, Shri M.S. Swaminathan, had to look at a comprehensive strategy for agricultural transformation of India. "I am sure it will look into issues like crop diversification, mitigation of farmers’ risk besides credit and input support as to bring a new element of dynamism into agriculture."

Answering a question whether he held bad policy or drought responsible for the crisis, the Prime Minister said lack of rain for years at a stretch had undoubtedly precipitated the crisis. But, the Government should have anticipated the situation and taken timely remedial measures

Six TRS Ministers Sworn-in

HYDERABAD: Five MLAs and an office-bearer of the Telangana Rashtra Samithi (TRS) were inducted into the State Cabinet on June 23, marking the first ever Congress-led coalition Government in the history of the State.

The TRS legislators – Shri A. Chandrasekhar, Capt. V. Lakshmikanth Rao, Shri Nayani Narasimha Reddy, Shri Sanigaram Santosh Reddy, Shri G. Vijayarama Rao – and Shri T. Harish Rao, were sworn-in as Ministers by the Governor, Shri Surjit Singh Barnala, at Raj Bhawan. The Chief Minister, Dr. Y.S. Rajasekhara Reddy, and Shri Chandresekhara Rao, were among those who attended the ceremony.

Dr. Chandrasekhara got Minor Irrigation; Shri Harish Rao Youth Services, Printing and Stationery; Capt. Lakshmikant Rao Backward Classes Welfare; Shri Narasimha Reddy Technical Education and Industrial Training Institutes; Shri Santosh Reddy Transport and Shri Vijayarama Rao Food, Civil Supplies, Legal Metrology and Consumer Affairs.

A Pro-Farmer, Tax-free Budget

HYDERABAD: The State Finance Minister, Shri K. Rosaiah, on June 23 presented the Congress Government’s first budget in 10 years to the Assembly in which he made a paradigm shift from fanciful policies of the erstwhile TDP regime to a rural-oriented one by allocating 61 per cent of the 2004-05 plan outlay to irrigation, agriculture and power.

Shri Rosaiah proposed no new taxes and promised mobilization of resources for the Rs. 51,142 crore budget through revenue buoyancy and improvement of tax compliance. However, he did not rule out tax reforms to enlarge the State’s revenue base after receiving the final report of the Revenue Reforms Committee headed by Shri E.A.S. Sarma.

In tune with the Congress Party’s pre-election promise of providing a pro-farmer government, the budget reflect a sharp increase of 94.85 percent in the plan outlay for irrigation (4,245 crore), 42.34 percent for agriculture (Rs. 933 crores), and 63.42 percent for weaker section housing (Rs. 417 crores). The Chief Minister, Shri Y.S. Rajasekhara Reddy’s promise of providing free power to farmers at a cost of Rs. 437.59 crores and the setting up of an agriculture technology mission were also included.

The Finance Minister programmed a plan outlay of Rs. 13,291.20 crores for 2004-05, an increase of 21.15 percent over last year. Inclusive of Centrally-sponsored schemes, the overall plan size is Rs. 15,207 crores.

Asserting that the massive mandate secured by his party in the Assembly elections had placed a great responsibility on the Congress Government to put the economy back on the rails, Shri Rosaiah went hammer and tongs at the TDP government’s policies in his 70-minute long speech. "I feel sad that I have inherited a completely debt-trapped State, with adverse asset-liability ration, lower GSDP rate, eroded human development index and a State with an annual agricultural growth rate of 1.14 percent for the last 10 years against 3.19 percent for the preceding decade."