The Annual Plan for the year 2013-14 for the state of Andhra Pradesh was finalised here at a meeting between Deputy Chairman, Planning Commission, Mr. Montek Singh Ahluwalia and Chief Minister of Andhra Pradesh, Shri N.Kiran Kumar Reddy. The plan size has been agreed at Rs.53,000crore.
Mr Ahluwalia complemented the State Government for efforts to make development truly inclusive and also for the efforts aimed at promoting public private partnership in the development of both social and physical infrastructure. He said better involvement of private sector would be needed during 12th plan period as State funds would not be enough to meet the needs of infrastructure development. He said the State Governments should come forward with the suggestions that can improve efficiency of flagship schemes and commission would consider them while finalizing plan document. Efforts are on to permit state specific flexibility in the guidelines of Centrally Sponsored Scheme for this purpose. On plan performance of the State, Mr Ahluwalia said the State has been doing fairly well on all sectors. Both financial management and social welfare are well prioritized in the planning strategy. He said the State has been truly following Planning Commission’s policy of more inclusive growth with focus on farmers and under privileged. Appreciating performance in the agriculture, he said Andhra is among the large States which have registered four per cent plus growth.
Performance in Human Development is satisfactory. There was a fall in the IMR during the Eleventh Five Year Plan but the achievement fell short of the target of 28. The total IMR of the State is 43 per thousand live births with wide disparity in IMR between rural and urban sectors. It is 47 and 31 per thousand live births in rural and urban sectors, respectively. The decline in MMR during the plan period was also less than the target of 65 during the plan period. The State may consider introduction of 4th ANC to emphasize planned delivery, strengthening of referral transport system and commencing mobile linked mother and child tracking system in all the districts.
It was pointed out that in the 11th plan outlay for Andhra Pradesh was approved at Rs. 187797 crore of which it has achieved Rs. 161756 crore, i.e. 86% of the approved outlay. The 12th Five Year Plan of the State has targeted plan outlay is Rs.342842 crore of which Rs.48935 crore was approved for 2012-13.The GSDP growth of the State is more than the national level growth rate and the sectoral growth rates also places the state above the national growth rates. In terms of mobilization of resources, Balance from Current Revenue (BCR) has remained positive at about 43% of the aggregate plan resources, with State’s Own Resources (SOR) contributing about 50% of aggregate resources during the 11th Five Year Plan. In 2012-13, BCR (Latest estimates) account for 40% of the aggregate resources and SOR is 40% of the aggregate resources. Tax-GSDP ratio for Andhra Pradesh has improved to about 8.5% of GSDP in 2012-13 as compared to 7.9% of GSDP in 2007-08. The State is revenue surplus, and fiscal deficit is within a comfortable level of 3%.
Planning Commission expressed concern over the slow progress in the literacy rate and pointed out that as per Census 2011, the State’s literacy rate is 67.6% with male literacy at 75.6% and female literacy at 59.74%. The State’s literacy rate is much lower than the national average of 74.0%.
In the agriculture sector, it was suggested that crop diversification and intensification in the rice fallows of coastal districts through oilseeds and pluses should be pushed under National Food Security Mission and RKVY. The processing facilities for fruits and vegetables may be promoted in PPP mode. The state may utilise the funds provided in the new initiatives on Public Private Partnership for Integrated Agricultural Development (PPPIAD) under RKVY.
On Communication and information technology the State was asked to formulate a suitable e-governance plan for the State may and implemented and also re-engineering of the present processes for weeding out obsolete processes and procedures must be undertaken for implementing any e-governance project on priority basis. The state government was also advised to get impact study done on Industrial Investment Promotion Policy (2010-15), under which various incentives/concessions like 15% capital subsidy, 100% VAT/CST reimbursement, 100% stamp duty remission and other subsidies are given to micro, small and medium enterprises.
Giving an account of plan performance and future strategy, Mr Reddy said that despite constraints State has been able in maintaining a satisfactory growth rate while pushing for truly inclusive growth strategy. He said human development indicators are exhibiting positive trend as State continues to focus on faster development of backward areas, education, health and infrastructure of SC/ST population.
He said the 12th Five Year Plan has recognized the importance of giving a big push to the Industry sector for accomplishing the envisaged growth, whose contribution to the State GSDP remained around 25% during the last decade. A targeted approach giving focus to MSMEs and small industries for generation employment through skill up-gradation remained core agenda for the 12th Plan. He said the State would target a growth rate of ten per cent during 12th plan. It would broad-base growth involving all sectors and all sections of people. Facilitate and enhance the ability of all sections of society to contribute to the development process and thereby benefit from growth.
He requested the Planning Commission for pushing central Government to expedite implementation/ completion of projects which have major bearing on the development of the State. He also requested that Indira Sagar Polavaram Project be given early revised investment clearance and along with Ambedkar Pranahita project be declared national projects.