Hyderabad: AP finance minister Yanamala Ramakrishnudu said that the AP government was giving priority to matching funds for the Centre-sponsored schemes and was thus not being able to spend on capital expenditure as had been mentioned in the budget.
He said that the government had allotted Rs 7,000 core for capital expenditure but had spent only around Rs 2,000 crore.
He added that the government had stopped development works and salaries would be paid if necessary by borrowing. He also said that imposing fresh taxes was out of the question though he hinted at a possible hike in power charges.
Mr Ramakrishnudu said that due to decrease of petrol and diesel rates, the government had lost Rs 400 crore in the last seven months and like other states, the AP government too had taken a decision to increase tax on petrol and diesel.
AP Chief Minister N. Chandrababu Naidu, meanwhile, accused the previous Congress governments in the state and the Centre for the present financial crisis. He said that the Centre was also facing financial problems but the state was trying to get funds from the Centre.
He denied allegations that decisions like paying 10-year-old arrears of Rs 1,500 crore to industries had led to the present financial crisis. He said that the previous Congress government had neglected to pay the subsidies and concessions to industries; to build confidence among industrialists the government had decided to pay the arrears.
Mr Naidu said, “I am an optimist, I am doing my best to get funds and Special Category status. In the last seven months, I have visited Delhi five to six times to discuss funds and other issues with the Centre.” He added that he was hoping that the Centre would announce a financial package soon.
