Hyderabad: “Increased revenue generation can contribute to the rendering of social justice through allocation of budget to various sectors including the Social Sector. Natural disasters and political upheavals in the recent past contributed to the difficulties in revenue realisation and meeting the budgetary targets”, said the special chief secretary (Finance), Mr G Sudhir.
Mr Sudhir was speaking as the chief guest at a seminar on “Andhra Pradesh Economic Vision and Budget 2011-12” organised jointly by the Federation of Andhra Pradesh Chambers of Commerce and Industry and the Institute of Public Enterprise at the Surana Udyog Auditorium, FAPCCI House, here on Saturday.
Mr Sudhir noted that the fiscal deficit of Rs 17,500 crores was well within three per cent of the State GDP. Stating that there was a power versus irrigation challenge in the State, he informed that the paucity of resources in the State do not permit complimentary development of both the sectors. He said that the PPP projects are the highest in the State and the Hyderabad Metro Rail project was one of the biggest PPP projects in the country.
Mr Sudhir said that difficulties in revenue generation in State PSUs due to protests was causing dent in the expansion of the production and services. He appealed to various associations in the State to help identify the priority areas in conjunction with the research institutions and universities.
The president of FAPCCI, Mr Shekhar Agarwal, said that 10 to 15 per cent growth in the industrial sector was possible and six new industrial estates with the state of the art infrastructure was a boon for the State. “Plans were afoot to invest Rs 15,000 crores annually and generate five lakh new jobs and this could be possible only through proper reorganisation of the Department of Industries. He also said that competency should be the main focus of the budgetary programmes rather than dependency.
The chairperson of FICCI, Dr Sangeeta Reddy said that high rate of education, entrepreneurial spirit and a good infrastructure have contributed to higher growth rate in the industrial sector in the past 20 years. However, over the past few years, it has been lagging behind in growth rate and more importantly it has lost the opportunity to become an Auto hub. She added that hospitality, IT, tourism, agriculture and so on must be the focused areas. She also questioned as to how much of the Rs 31,000 crores of the Union Budget for the skill development could be tapped by the State?
Commending the Budget, the Director, IPE, Prof. R K Misra, said that the State has so far achieved only 40 per cent of what Tamil Nadu had done. He said that though climate, culture and food basket were the best here, relative and absolute productivity were declining. He also said that lack of constructive criticism and focus on the outcome and tolerance towards corruption were the impediments confronting the State. He also said that resources should be allocated for growth, achieving excellence, future progress and for the social sector.
Former IAS, Dr Gopala Krishna, the Principal Secretary of Planning and Finance, Mr L V Subrahmanyam, the Principal Secretary for Planning, Mr S P Tucker and noted journalist, Mr Potturi Venkateshwar Rao, also spoke. (NSS)