New Delhi: Chairman of the Fifteenth Finance Commission, N K Singh, met the Chief Minister of Andhra Pradesh, Y S Jagan Mohan Reddy, in Vijaywada yesterday and discussed various issues specific to state finances for the award period of the Commission from 2021 to 2026.
Reddy highlighted the State’s fiscal challenges arising out of the bifurcation of the erstwhile Andhra Pradesh and stressed on the requirement of financial management by the new State Government.
While stating that the new State Andhra Pradesh was the most backward among all the southern states, the Chief Minster urged the support of the Commission to rebuild the governance systems from scratch.
He also stressed on the need to support newly initiated unique welfare schemes, Navaratnalu, in order to achieve the Sustainable Development Goals (SDGs), Polavaram Project, and other flagship projects to cover all backward districts in Rayalaseema and North Coastal parts of the state. The CM also briefed the Chairman about the newly created Village Secretariats of the State.
CM Reddy listed out the commitments made in the State Reorganisation Act along with the demand for Special Category status to the state and requested the Commission to recommend immediate steps by the Centre to release all pending dues to the state to ensure that the progress of the new state is not hampered.
The State Government officials made a detailed presentation on the fiscal situation of the State and sought about Rs. 5 lakh crore as revenue deficit grant, increased limits for borrowings and waiving off the past liabilities of the State on account of NSSF loans.
The Chairman, NK Singh, assured that all issues raised by the State Government would be carefully examined and duly considered and the Commission will continue its dialogue with the State. He advised the State, however, to make serious efforts to invest the scarce resources in areas which will ensure future stream of income.
He was accompanied by Arvind Mehta, Secretary, and other officials of the Finance Commission.
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