AP financial health is fine, says CMO official

[Anta Assamey]

The Andhra Pradesh government on Tuesday clarified that the financial health of the state is absolutely stable and the debt position of the state is absolutely within the limits.

Reacting to the allegations made by the opposition parties and the reports in a section of media about the alarming financial situation, Duvvuri Krishna, Special Secretary to CM (Finance and Economic Affairs), the borrowings indulged in by the previous TDP government were much more than by the Jagan government.

“Just days before the 2019 general election to the Legislative Assembly of Andhra Pradesh, the TDP government hurriedly disbursed scheme related amounts to lure voters. In this regard, the TDP government 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,” he said.

Sharing facts from the RBI report, Krishna shared that it was a herculean task for the YSRCP government to improve the health of the state's finances. The outstanding liabilities had increased by 138.84% during the 5-year TDP rule. This translates to a compounded annual growth rate of the liabilities of 19.02% during 2014-19. 

As against that, the increase in liabilities during the period of the YSRCP Government increased by only 62.78% during the 4-year period of YSRCP government. This translates to a compounded annual growth rate of the liabilities of 13.55% during 2014-19, Krishna revealed. 

The Special Secretary then busted the fake claims of the opposition that the debts of the state government has doubled in the YSRCP rule.

Referring to the RBI report, Krishna said, "In 2014, liabilities of the TDP Government was ₹1,13,797 crores as per the RBI report which increased ₹2,71,797.56 crores in 2019. This is an increase of 238%. Compared to this, the debt of the YSRCP government has not doubled during the first 4 years of the present government, as alleged. It has only increased by 62.78%." 

"As alleged by the opposition, if the liabilities were to double during the period of the present government, the borrowing during the final year of the present should be to the tune of ₹1,01,150 crore and this is just impossible. We should appreciate the efforts of the YSRCP government. Spewing venom and spreading lies without looking into the facts is deplorable," Krishna lamented.