AMARAVATI: Strongly refuting the charges that state’s debts were soaring beyond its limits, special secretary (finance and economic affairs) to the chief minister, Duvvuri Krishna has asserted that the fiscal health is well managed by the YS Jagan Mohan Reddy government.
He fumed that the opposition parties and media houses backed by them were deliberately spreading lies and false propaganda with regard to the fiscal health of the state only to create confusion in the public. He said that it was the TDP government which is chiefly responsible for the chaotic conditions in the state as it borrowed indiscriminately for cosmetic development.
Speaking to the media here in the secretariat on Tuesday, Krishna said that the state’s liabilities have more than doubled during TDP regime as the outstanding liabilities have increased by 138.84% between 2014-19. This translates to a Compounded Annual Growth Rate (CAGR) of the liabilities of 19.02%. In contrast, the outstanding liabilities have increased just by 62.78% during the 4 year period of YSRCP government which translates to a CAGR of 13.55%. “We should keep in mind we have achieved low rate of liabilities despite facing unprecedented difficulties in the light of the cyclical economic slowdown followed by the outbreak of Covid-19 pandemic. The AP’s debts grew at a slower pace,” asserted Krishna.
The liability of AP at the time of formation of the TDP government in 2014 is Rs.1,13,797 crores and the same has increased to Rs. 2,64,451 crores by March, 2019. The TDP, which remained in power till the end of May 2019, incurred borrowings at unprecedented scale.
He said that the TDP government has hurriedly introduced schemes and disbursed amounts just days before announcement of elections schedule to lure voters to vote. He said that TDP government had not only spent Rs.6000 crore in the first 10 days of April, but it had also raised a whopping Rs. 5,000 crores through SDL auction on a single day on 9th April, 2019, just two days before election.
“This would possibly be the highest amount of debt any State government would have raised on a single day. Nearly 15% of the annual limit for the financial year 2019-20 has been exhausted on the first day itself,” said Krishna.
He said that total liabilities rose to Rs. 2,71,797 crore by the time TDP demitted office. “The debt has increased by 238% as the closing debt is 2.38 times the opening debt. Compared to this, the debt has not doubled during the first 4 years of YSRCP regime as it has only increased by 62.78%. This means the closing balance of liabilities by the end of 4 years of the present government is only 1.63 times the opening balance of liabilities,” said Krishna.
TDP ruined state finances
*Share of AP’s aggregate fiscal deficit during TDP regime was 7.06%
*It is just around 5.76% during YSRCP regime: Krishna, special secretary to CM
*Loans of PSUs that are not guaranteed by the State Government cannot be regarded as a State debt
*TDP government over borrowed Rs.48,128 crore than the limited fixed by the Centre
*YSRCP government under-borrowed to the tune of Rs.2696 crore than the permitted amount
