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Naidu ruined finances, says white paper

Naidu ruined finances, says white paper

Andhra Pradesh’s financial position has plunged into huge financial mess in the last five years of Telugu Desam Party regime headed by N Chandrababu Naidu, the white paper released by the YSR Congress party government headed by Y S Jagan Mohan Reddy on Wednesday said.

Releasing the white paper at a press conference, finance minister Buggana Rajendranath Reddy said the new government had inherited a deeply indebted public financial system, empty treasury, and a gigantic debt, apart from unpaid bills amounting to more than Rs 16,000 crores.

The financial situation, as it stands today, stands crippled, the biggest legacy of the previous government.

He said the past five years of mis-governance, financial mismanagement, complete neglect of investment in human and physical capital, coupled with corruption had pushed the state into the dark ages that were never experienced in its history.

“The governance during the past five years was characterised by unbridled greed, blatant corruption, ruthless exploitation of natural resources for private gain, avaricious grabbing of land from small and marginal farmers, especially those from weaker sections, thoughtless and needless environmental destruction, privatisation of public institutions in favour of cronies and friends, failure to create employment for educated youth, politicisation of the government machinery at all levels, complete neglect of farmers, rural areas, youth, weaker sections, minorities, urban areas, and above all, serious mismanagement of the financial system,” Buggana alleged.

He said the new government had inherited a debt burden of Rs 2.58 lakh crore, besides off-budget borrowings of Rs 58,000 crore and outstanding dues of Rs 18,375 crore to power sector, Rs 10,000 crore to civil supplies department and Rs 18,000 crore to other departments.

The revenue deficit of the state which was Rs 16,078 crore during 2014-15 mounted to a whopping Rs 66,362 crore by 2018-19 and the state could get only Rs. 3,979 crore from the centre towards grants to offset revenue deficit, he said.

Reddy said the loans had increased manifold during the previous government which had raised loans for unproductive means and has shattered the financial morale of the state.

The previous government has diverted funds indiscriminately which resulted in huge damage to the financial and operational health of various sectors. 

Funds to the tune of Rs. 4,800 crores were diverted by the TDP Government for the hastily introduced Pasupu Kunkuma scheme and others.

There is also instances of government not releasing budgetary amounts has also become a liability.

“Despite the shoddy financial condition, we will boldly face the situation and go ahead by unwinding the damage strings of the previous government one by one and put the human resources into optimum use to achieve growth,” he said.

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Tags: Jagan Andhra Pradesh Chandrababu Naidu Buggana Rajendranath Reddy