VIJAYAWADA: The Taxpayers Association (TPA) has demanded that the State Government withdraw GO 336, which facilitates the municipal administration department execute various infrastructure works in 110 urban local bodies (ULBs) in the State by availing loans from scheduled banks.
Addressing a press conference here on Monday, TPA’s secretary MV Anjaneyulu said the government issued GO 336 on October 22 which said that Rs 12,600 crore would be spent under Critical Infrastructure Investment Plan (CIIP) to improve basic amenities in the ULBs. “Ninety per cent of the total amount is to be availed as loans from scheduled banks with the government as guarantor and the rest 10 per cent will be borne by the State government,” he said.
He questioned the reason behind the department’s decision to avail financial assistance from banks for improvement in water supply, sewerage management, stormwater drainage and other civic works when it could instead utilise the funds provided by the government.
“Instead, the government should spend money collected from the tax for development in the ULBs.”
As the civic bodies will be repaying the principal amount, the move can end up in bankrupting them as they are already facing a financial crisis, he pointed out.
Stating that the government failed to spend Rs 461 crore sanctioned by the Centre towards execution of stormwater drainage project in the city three years ago TPA president V Sambi Reddy sought to know the planning for executing development works worth Rs 3,000 crore, the loan amount which is to be acquired in the first phase.