The Hindu : Andhra Pradesh News : Give up loan plan: CPI(M)

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Friday, May 20, 2005

Andhra Pradesh

Andhra Pradesh

Give up loan plan: CPI(M)

Staff Reporter

B.V. Raghavulu writes letter to YSR

HYDERABAD: The CPI (M) has asked the Government to give up its plan to secure structural adjustment loan from the World Bank and to enact a law through an ordinance on fiscal responsibility and budget management.

In a letter to the Chief Minister, Y.S. Rajasekhara Reddy, the party secretary, B.V. Raghavulu, sought to justify his party's demand not to go in for the loan on the plea that if the Government `thoughtlessly' agreed to it, the State and people would be harmed.

`Harmful' step

He described as `a mirage' the view that the World Bank viewed any aid-seeker with a humane angle. He claimed that issue of ordinance on fiscal responsibility was a conditionality laid down by the bank.

The Government, Mr. Raghavulu asserted, was planning the ordinance on an urgent basis. Such a step was not only dangerous but also harmful, he said.

The CPI (M) leader described the proposed ordinance as `undemocratic' since there was no discussion in the Assembly.

Besides, it would amount to "succumbing to the bank's pressure and pose a threat to sovereignty and self-respect."

He recalled that the Telugu Desam Government had taken structural adjustment loan and agreed to the bank's terms. The conditionalities had jeopardised the State's development and people's welfare.

Dr. Reddy, Mr. Raghavulu pointed out, had opposed the World Bank loan when he was the Opposition leader.

"It is regrettable that you are going in for the same loan", the letter stated.

He accused the Chief Minister of `misleading' people by claiming that there would not be any conditionalities now.

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