Guide States on prudence of funds: Suresh Prabhu to PM Modi

Amaravati: Rajya Sabha member from Andhra Pradesh and former Union Minister Suresh Prabhu on Thursday urged Prime Minister Narendra Modi to guide the State Governments in striking "a fine balance" in utilizing funds for their development while adhering to the norms of FRBM principles.

He said, "while the State Government provides welfare measures, they do so with long-term financial stability of their public finances in mind, follow FRBM principles".

On Wednesday, the MP had forwarded a suggestion to Union Finance Minister Nirmala Seetharaman against the State Governments' practice of exceeding the FRBM limits in their borrowings and spending the same on welfare measures.

Referring to the just-announced economic output and GDP, he congratulated the Prime Minister for making the economy recover very fast and putting it on a positive course, Suresh Prabhu said it was evident that the Centre was doing a fine balancing act by fulfilling its social responsibilities too with sensitivity and compassion. Proper guidance would help States to steer clear of the pitfalls and hurdles in balancing the fiscal situation, he said.

Suggesting to the PM that all State Governments be guided by the Centre to adhere to fiscal norms "by following best possible prudential norms in such a difficult situation". He said he had brought to the notice of Union Finance Minister Nirmala Seetharaman, a suggestion against the State Governments' crossing the FRBM limits while seeking her intervention in helping the State Governments on to the right path of expenditure (on welfare measures).

As a representative of Andhra Pradesh, he said he was working closely with the AP Government to get more investment for the State and in starting skill development centres by assisting the State for its growth. Seeking support for the initiatives for the development of the State, he urged the Prime Minister to support his initiatives for faster growth of AP.