Chairman 15th Finance Commission holds meeting with the CM Andhra Pradesh

The Chairman Fifteenth Finance Commission Shri N K Singhmet  theChief Minister of Andhra Pradesh, Shri Y S Jagan Mohan Reddy in Vijaywada on 19th December, 2019 and discussed various issues specific to state finances for the award period of the Commission from 2021 to 2026.  Shri 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 theCommission to rebuild the governance systems from scratch. He also stressed on the need to support the newly initiated unique welfare schemes, Navaratnalu, in order to achieve the Sustainable Development Goals, Polavaram Project, and other flagship projects to cover all backward districts in Rayalaseema and North Coastalparts of the State. The CM also briefed the Chairman  about the newly created Village Secretariats of the State.

Shri Reddy listedout 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 stepsby 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, Shri N K 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. However, he advised the State to make serious efforts to invest the scarce resources in the areas which would ensure future stream of income. He was accompanied by Arvind Mehta, Secretary and other officials of the Finance Commission.