The Hindu : Andhra Pradesh News : Ex-Minister flays Government

Online edition of India's National Newspaper
Friday, Jul 30, 2004

Andhra Pradesh

Andhra Pradesh

Ex-Minister flays Government

By Our Staff Reporter

HYDERABAD, JULY 29. The former Minister, Y. Ramakrishnudu, on Thursday accused the State Government of not making budgetary allocations in accordance with the pre-election promises made by the Congress and expressed fears that new taxes might be imposed to meet the `additional commitment', including completion of irrigation projects.

Initiating the debate on the appropriation bill in the Assembly, he expressed serious doubts about the Government being able to honour the promises and commitments in view of the fact that they required mobilisation of huge funds.

Tax revenue

Mr. Ramakrishnudu pointed out that it was difficult for the Government to achieve a tax revenue growth rate of over 22 per cent when the annual average during the last several years was only 15 per cent.

The former Minister sought to know whether the Government want to widen the tax base on the basis of the report of the former principal of the Administrative Staff College of India (ASCI), while noting the Government's assertion that it did not want to impose any fresh taxes.

Prohibition

He also faulted the Government for promising to implement prohibition in a phased manner and expressing confidence in achieving excise revenue of more than Rs.1,000 crores. How will this be possible unless the Government did not want to implement prohibition this year and permit more belt shops.

He also expressed doubts about the Government's projections of netting an additional revenue of more than Rs.2,000 crores by the stamps and registration department, Rs.1,729 crores from sales tax.

White paper urged

Mr. Ramakrishnudu said the debt of Rs. 8,803 crores this year was the highest since Independence. The Government would require to borrow around Rs.10,000 every year during the next five years to fulfil its promises and by then the total debts would be more than Rs. 100,000 crores.

He urged the Government to publish a white paper on taxed revenue during the first quarter.

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Andhra Pradesh