The fund crunch in Andhra Pradesh seems to be going through the roof what with the YCP government asking Centre’s permission to go for more loans, even after several organisations red-flagging the state for failing to clear their dues worth hundreds of crores of rupees.
YCP MP Vijayasai Reddy urged the Centre to allow Andhra Pradesh to seek loan of additional 0.5% in the Gross State Domestic Product (GSDP). This will allow implementation of welfare and development programmes in the state uninterruptedly. He told the Centre that AP had been struggling with the deficit budget since its formation. During bifurcation, much of the revenue generating sources have gone into the Telangana kitty. Unscientific division of united Andhra Pradesh , he pointed out.
Speaking in the Rajya Sabha, the YCP MP said that Chief Minister Y.S. Jagan Mohan Reddy had been putting in efforts to ensure all-round development of the state. He reminded that the 14th Finance Commission also pointed out that revenue deficit was certain in Andhra Pradesh.
The MP said despite the financial crisis and the meagre support by the Centre, Jagan had been implementing Navaratnalu, the CM’s pet project, successfully.
In the current fiscal, all the seven states which had met the capital expenditure targets for the first half, have been allowed to take an additional 0.5% loans by the finance ministry. He lamented that the Centre had done injustice to Andhra Pradesh once again by imposing the capex target rule.
The seven states which had been granted permission for more loans include Chhattisgarh, Kerala, Madhya Pradesh, Punjab, Rajasthan, Meghalaya and Telangana. These states achieved a target of 45 per cent of the total capital for financial year 2021-22 up to July-September.
For 2021-22, a capex target of Rs 5.79 trillion has been set for all states, and if their capital spending exceeds this target, they will be eligible to borrow an additional Rs 1.05 trillion over their permissible borrowing limit of Rs 8.46 trillion.
He welcomed the Union Finance Minister’s announcement that the Centre would speak to the states directly, try to resolve the challenges being faced by them and improve the financial position.
Opposition parties slammed the YCP government for ‘ruining the state in all aspects’.
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