Leader of Opposition in Andhra Pradesh Legislative Council, Yanamala Ramakrishnudu, on Monday expressed surprise as to why either the union government or the Reserve Bank of India (RBI) was not taking it seriously when the state's total debt burden has crossed a whopping Rs 12.50 lakh crore. The Telugu Desam Party (TDP) leader and former Finance Minister alleged that the state has "totally collapsed" after Y S Jagan Mohan Reddy has become the Chief Minister and the people have never witnessed such a dire situation. "Still, why neither the Centre nor the RBI is taking the situation seriously," he asked.
Ramakrishnudu told reporters that the YSRCP government not only created problems for the people of the state but also crippled the whole economy. He remarked that Jagan has the credit of pushing the economy to the lowest level.
Expressing serious concern that every individual carries Rs 5.5 lakh debt on his or her head now, he said that by March 2024, the outstanding debts will go up further.
Despite all this, the RBI is according permissions to the state to borrow more funds and the people in the coming days will be facing a massive burden of Rs 15,000 crore in the shape of revision of RTC and power charges and to meet the daily needs, Yanamala alleged.
Though the state government has been claiming that thousands of crores are being spent for welfare schemes, the report of the Comptroller and Auditor General (CAG) says that the funds are not reaching completely to the beneficiaries, he pointed out.
By that time the YSRCP government completes its five-year term, the funds spent on welfare schemes alone will reach Rs 2.70 lakh crore, he said, adding that the financial imbalances are increasing by the day. The CAG has clearly mentioned in its report that Rs 48,000 crore has been misused in the 2019-20 fiscal while there are no accounts for Rs one lakh crore in the financial year of 2020-21, he stated.
The CAG also mentioned in its report for 2021-22 that accounts for Rs 1,18,000 crore have not been shown, Yanamala said and asked what the state government is doing with these funds without giving details of the accounts. This clearly indicates that these funds worth lakhs of crores are being diverted, the former Finance Minister alleged and expressed concern that in the coming days the interest on these loans itself will be in lakhs of crores per annum.
Ramakrishnudu asked as to why salaries in lakhs of rupees are being paid for the advisors. "What additional qualifications do they have," he questioned and said that public money should not be paid as salaries for political advisors. All this is causing a huge burden on the exchequer, he said and asked how volunteers can be appointed with public funds.
He also felt that the Central funds too are being diverted and expressed surprise that the union government is not questioning this. The Leader of the Opposition in the Upper House felt an immediate need for the union government to intervene and the RBI too should initiate proper steps to correct the situation.