Jagan's misgovernance scissored future debts of Andhra, says BJP leader

Bharatiya Janata Party (BJP) leader Lanka Dinakar on Tuesday lashed out at the YS Jagan Mohan Reddy-led Andhra Pradesh government and said that his "misgovernance" has scissored future debts of the state.

Dinakar, while tabling data, stated that the estimated debt limit of the state for the financial year 2021-22 is Rs 42,472 crore, which is 4 per cent of the state's Gross Domestic Product, of which 0.5 per cent is based on Capital Expenditure targets fixed by the Union Finance Ministry.

"Actual capital expenditure was only Rs 8,739 crore by the end of October 2021 as against the total capital expenditure needs to be incurred for Rs 31,198 crores for the financial year 2021-22. It means that while the actual capital expenditure has to be made up to about 55 per cent by October 2021, but actually it had spent 28 per cent only," the leader said.

"At the present calculations as the base, it is not believed to achieve that 75 per cent of the estimated capital expenditure as a target in the third quarter for an additional loan as an incentive. Hence, that it is unlikely to achieve the 100 per cent targeted capital expenditure by the end of the current financial year 2021-22," he added.

Further slamming the Chief Minister, Dinakar said that, after the reply in the Parliament by the Union Finance Minister, it was identified that Jagan Mohan Reddy led YSRCP Government had raised Loans for Rs 17,924 crore for the financial year 2020-21 beyond and in addition to Fiscal Responsibility and Budget Management (FRBM) limit.

The Centre has proposed scissoring from future debt limits in the next three years as per the request of Andhra Pradesh when the Union government had proposed to adjust in this current financial year 2021-22.

"At this juncture, there is a doubt to allow the estimated debt limit of Rs 42,472 crore for the financial year 2021-22 for Andhra Pradesh. We need to analyze carefully the reply of the Union Finance Minister in the Parliament. The Centre is scissoring from future debt limits for Rs 17,924 Crores of excess borrowings of the state in the next three years is impacting to the extent of Rs 6,000 Crores for the current financial year and further Rs 10,500 Crores borrowings will have been reduced due to the failure to achieve the capital expenditure targets in this current financial year 2021-22 itself,' Dinakar said.

"Hence, allowable net debt to Andhra Pradesh is less than for Rs 26,000 crores instead of 42,472 crores for the current financial year 2021-22," he added.

The BJP leader then questioned the state government on the borrowing limits of the current financial year 2021-22, which the state has allegedly already crossed in the "first seven months".

"In this extreme condition, how many years in the future will be required to adjust these additional debts and it will be shed by those who run the state government in the future?" he asked.

"The debts beyond the FRBM limits incurred for this financial year will have to be adjusted for future years. Will it not be a curse to those who run the future state government? Impact of Jagan regime failure sins the new governments in future," Dinakar added.

( With inputs from ANI )

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor