YSRCP defends debts, finds Oppn charges hollow

Visakhapatnam: THE YSR Congress Party (YSRCP) in Andhra Pradesh has found itself on a sticky wicket following deteriorating financial conditions with the opposition parties hitting out at the leadership for pushing the State into a debt trap.

The prolonged spell of the pandemic has led to falling revenue. The ruling party blames denial of benefits under Special Category Status promised to the State at the time of bifurcation and 'fiscal indiscipline' committed during erstwhile Telugu Desam Party rule from 2014-19 for the present predicament.

Opposition leaders have quoted the Ministry of Finance as saying that taking loans from public sector banks by pledging future revenue from excise and other departments is not in consonance with the Constitution.

BJP national secretary and in-charge of AP affairs Sunil Deodhar had tweeted in April "AP's debts have reached Rs 4 lakh crore and it is being spent on freebies and unproductive work. We oppose this move and we will see to it that when we come to power, a progressive government and good administration takes place."

TDP State president K Atchan Naidu told Bizz Buzz that the Jagan Mohan Reddy Government was taking the State backwards by its extravagant spending for rehabilitating his party people and supporters in various plum posts caring least for the interest of the State.

TDP MLC P Ashok Babu demanded a white paper on State finances alleging that the loans taken by the government and as well as for various corporations have exceeded Rs 5 lakh crore.

Rubbishing the Opposition tirade against the YSRCP Government on borrowings, Finance Minister Buggana Rajendranath Reddy said during TDP rule, the CAGR between 2014-19 was 10.03 per cent, whereas with the pandemic fallout between 2019-21, only 1.30 per cent has been registered, which resulted in a loss of Rs 7,947.07 crore.

During the first lockdown between April-May 2020, nearly Rs 4,709.24 crore revenue loss occurred and also expected revenue fall during 2021-22. Reddy said to fight against Covid-19 fallout, the State Government has spent Rs.7,130.19 crore for providing treatment, developing medical infra, testing, vaccination and many more irrespective of the Centre's support.

Taking a dig at TDP, he said that the previous government had crippled the State finances with abnormal borrowings and left a huge pile of debts.

According to FM, at the time of bifurcation, the total debt was only Rs 1,18,544.34 crore, but between 2014-19 it increased to Rs 2,57,509.85 crore. Besides these, through various corporations, the TDP government had left a debt of Rs 1,00,000 crore.

However, the current government is being accountable for every single borrowing, as on date Rs 1,27,195.81 crore have been borrowed and credited Rs 1,051,22.22 crore into the accounts of farmers and women during Covid crisis as financial support without resorting to any corruption.

He said that all the borrowings have been done as per the FRBM limits, where the Union Government permitted an additional borrowing of Rs 20,000 crore under Atmanirbhar Bharat Mission.

He claimed that the government has been prioritising public welfare schemes, and spending accordingly while even paying interests to the borrowings of TDP government and clearing the pending arrears left by them.