To Date : 28th March, 2023
Smt. Nirmala Sitharaman Garu,
Honourable Union Finance Minister,
New Delhi.
I am congratulating you madam for yours presentation of Amrit Kaal Budget 2023 – 24 with the aim of Bharat to be the Viswa Guru in the next 25 Years as per the aspirations of Honourable Prime Minister Shri Narendra Modi ji. I am very happy to share with yours on my participation in Workshops in Universities and Colleges to interact with the students (Who are real future endeavours of Bharat as Viswa Guru) and Intellectual meetings with the notable citizens across the Andhra Pradesh.
My observation was that a Student from Gitam University asked the pertinent question about Freebies and it’s unproductive impact on the Country’s finances can be regulated through any Central enactment since many states depending on freebies to garner the share of vote bank, which creates financial hardship to the States and Country as well in the future. Most of the debts of the many States are using for unproductive means
(Freebies), it creates much pressure on future generations for serving those debts as borrowings obligations will be piled up without repaying revenues and productive assets. We noticed the real distinction between Welfare Measures and Freebies in our Workshops and Intellectual meets to the audience as Welfare means “ handholding to the eligible beneficiary till they attain self sufficient for their living needs “ and Freebies mean “ extending benefits without any future progress in the lives of beneficiaries and depend on the Government assistance forever”.
The primary aim of the Budget 2023 – 24 is, almost 1/3 rd of the 45 Lack Crore size of the Budget has prioritised for Capital Expenditure ( 10 Lacks Crores Direct Capital Expenditure + 3.70 Lack Crore for Capital assets creation with Central Sponsored Schemes + 1.30 Lack Crore for 50 years Long term Interest Free Loan to the State ), Where is such kind of the commitment from the States like Andhra Pradesh ( Unable to meet even 60% of the Budgeted Capital expenditure of the State in to the actual ) ?, Whether these kind of States will be hurdle to reach the objectives of the Nation or not?, Union Government needs to put it’s attention on this kind of issues, otherwise it will make adverse impact adversely on the Union and State Government Finances.
Main problem with the few States Governments is diversion of funds and failure of providing the matching grants to the Central Sponsored Schemes and Projects. Further, diversion of the funds received from the union government for using other than the designated purpose is the violation of the guidelines and the estimated objectives of the Union Government also not mitigating properly.
We noticed the performance of the State Government of Andhra Pradesh pertaining to the providing matching Grants for Central Sponsored schemes and projects have been almost negligible and diverting these funds to the State Government program called “ Navaratnalu”. Hence, specific funds transferred to the sate government for attaining specific goals of the Union Government have been temparing. In this circumstances, Union Government needs to instruct as the guidelines for open the Program wise Escrow account to maintain the funds of the Union and State Government on Scheme and Project wise with a condition that State Government schemes can not be clubbed together so as to maintain the Central Programs as unique and identifiable the performance of such schemes of the Union Government. Further, Sate Government matching grants for Central sponsored schemes and projects shall be mentioned the scheme wise and projectwise of the respective State Government in their budget and incur the actual expenditure at least as mentioned in their respective budget for the particular financial year – this instruction is very important for the State of Andhra Pradesh since the State Government of Andhra Pradesh violating the norms and guidelines of the Union Government’s Central Sponsored schemes and Projects by diverting as per it’s whims and fancies.
We want to inform you that a suggestion received from a person in the Intellectual meet in Tadepalli Gudem ( Narsapuram Parliament ) about the names of the Central Schemes as almost all schemes names changed by the State Government according to it’s convenience to propagate as their schemes. It becomes easy for the State Government due to the Union Government names resembles in hindi nativity likeKissan Smman Nidhi( same is Raithu Borosa in Andhra Pradesh ), PM Poshana ( Jganann Gorumudda ) PMAY ( Jagananna Colonies ) Ayushman Bharat ( YSR Arogya Sri ), Garib Kalyan Anna Yojana and Rice through PDS also not getting attention from the public as the Central Government schemes as those are distributing with CM YS Jagan Photos on the vehicles and so on. Even crop procurement from farmers have been showcasing as the state Government payments in the news papers advertisements. It is advisable to naming the schemes with in the nativity of the region in their regional language of the respective state, then that is easy to understand as the Union Government program and make it as mandatory to use that particular name in the State for the schemes including colours and content to use for the pamphlets, stickers and banners.
Last, but not least that Fiscal management of the states like Andhra Pradesh is imprudent, financial statements also not maintaining as per the accounting practices with appropriate standards pertaining to the borrowings, revenue and expenditure recognition. If we observe the financial statements in the monthly indicators submitted to the CAG by the State Government for the financial year 2022 – 23 between 31st December, 2022 to 31st March, 2023, those adjustments ( Window Dressing ) made in the last quarter of the financial year 2022 – 23 would not practise even few irregular private companies. We can notice the violation of FRBM limits by raising Borrowings through Corporations and servicing the debts through revenue from the diversion of Consolidated Fund of the Andhra Pradesh, Huge amount of outstanding bills are unpaid, Guarantees for loans and borrowings at high in the country in contradiction with Article 293 (3) and 293 (4). Our strong feeling is that, existing provisions are not meeting the objective due to lack of proper conditions to control the loans raised by the Governments, in this circumstances Central Debt Regulatory Authority (CDRA) is very much required with the composition of Union and State Government Finance Ministers and Chief Secretaries with the strong guidelines, rules and regulations with penalty clauses to regulate the Unproductive Debts and the mechanism of the CDRA shall be like GST Council or Electricity Regulatory Authority. Otherwise, the Imprudent Financial practice of the States will impact on the Nation in the future generations.
My strong appeal is, th Polavaram Project shall be completed as it being the Life Line of the entire Andhra Pradesh where the State Government non performing objectively as their priority appears for Unproductive means only. The people of Andhra Pradesh desire is Union Government shall intervene for the augment of the activities to complete the Polavaram Project.
Dhanyavadh Madam.
Yours Sincerely
Dinakar Lanka, F.C.A.
AP BJP Political Feedback Pramukh
&
Member of AP BJP for Union Budget
About the Author
