The Hindu : Andhra Pradesh News : YSR nails criticism on bank loan

Online edition of India's National Newspaper
Friday, May 20, 2005

Andhra Pradesh

Andhra Pradesh

YSR nails criticism on bank loan

W. Chandrakanth

No compromise on socio-economic agenda, says the Chief Minister

HYDERABAD: The Chief Minister, Y.S. Rajasekhara Reddy, has dismissed the criticism that his Government has succumbed to the World Bank conditionalities to secure a loan of Rs. 7,510 crores for irrigation and slum area development.

Talking to The Hindu on Thursday, the Chief Minister said: "The criticism is baseless in the light of our welfare measures. Have we sought prior approval of the World Bank to implement free power supply, waiver of power dues and hike in old age pension? There is no compromise on our socio-economic agenda."

Dr. Reddy said he objected to borrowings during the Telugu Desam rule because of the conditionalities. Closure of public sector enterprises and corporations and privatisation of power board were all anti-people measures, he said.

No similar agreement was in place now, Dr. Reddy said, and added that the World Bank was impressed by the Government's successful effort in bringing down the revenue deficit and increasing capital expenditure. Fiscal discipline had ensured that no Ways and Means advances were required during 2004-05 in contrast to Rs. 7,356 crores availed a year before.

The fiscal deficit had come down from Rs.7,450 crores to Rs.7,283 crores and the annual plan achievement was Rs.11,183 crores against Rs.10,699 crores of the year before. He felt that the World Bank might have insisted on reforms during the TDP rule because of its non-productive investments and fiscal indiscipline.

The latest Christian Aid's report on the farmers' suicide strengthened the theory that fault lines in planning were not rectified by the TDP Government. "But, today the World Bank is dealing with a Government that prudently uses its resources. Any lending agency will look into the loanee's repayment capacity. Our progress, perhaps, made them impose no conditionalities," he argued.

Krishna waters

The tough talk by the Karnataka Irrigation Minister, Mallikarjun Kharge, on the issue or Krishna waters `is more a political posture,' he said, ruling out any compromise on the stand of Andhra Pradesh. "Our irrigation potential is threatened by Karnataka and we definitely work in the direction of ensuring a `right' over the use of surplus waters of the Krishna.

On the tour undertaken by the TDP president, N. Chandrababu Naidu, of drought-hit areas in Karimnagar district, Dr. Reddy said: "he should go to people to apologise for all those suicides of farmers and handloom weavers since his wrong policies continue to have an impact even now. He must be held accountable for all those deaths."

Dr. Reddy said Mr. Naidu had not developed any respect for established norms and democratic canons even after defeat. He found it strange that the TDP made a complaint to the Election Commission when its leaders had instigated violence and attacked policemen with bombs.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh