VIJAYAWADA: Finance Minister Yanamala Ramakrishnudu has lashed out at Prime Minister Narendra Modi and YSRC chief YS Jagan Mohan Reddy, holding them responsible for the State economy going into the doldrums. He said the two have conspired against the State and saw that the funds due to AP were not released.
In a press release issued on Tuesday, Ramakrishnudu said Jagan deputed his party MPs to file complaints, again and again, to hinder fund flow to the State and even conspired to ensure NREGA funds do not reach the State. .
The Finance Minister said despite such obstacles, the State government, with its own funds, has taken up various development and welfare projects. “Seventy per cent of Polavaram project was completed, 23 projects were constructed and construction of the capital city has been put on the fast track,” he said.
He said that in the last five years, tax income was not up to the expectations, but the capital expenditure and revenue expenditure have increased enormously. “The gap between inflows and outflows has increased,” he observed.
Ramakrishnudu said the Modi government has been eyeing the contingency funds from RBI and took Rs 1.5 trillion and at the same time obstructed RBI from giving funds to the States. The minister maintained that borrowing (FRBM limit) did not cross 3 per cent of GSDP and accused BJP leaders of obstructing the proposal from the State to increase FRBM limit. “But, they did nothing. At the same time, it was increased for Telangana, Gujarat and Karnataka,” he said.
Yanamala said the present State government is clearing the debt burden on AP accumulated since 1956. As of March 2019, the outstanding debt of the State is Rs 1,92,687 crore. “We inherited 58 per cent of the debts of the undivided AP based on population. Further, the Centre has put UDAY bonds of Rs 8,256 crore on the State. In the last five years, the debt burden on the State was Rs 95,564. Had the Centre filled the revenue gap of Rs 16,000 crore, 80 per cent of the State’s debt would have been lessened,” he said and claimed that due to the 14th Finance Commission lapses, the State has suffered a loss of Rs 20,000 crore.
Instead of Rs 42,000 crore, the State was paid only Rs 22,000 crore. Faulty fundings from the Centre made the State suffer losses to the tune of Rs 1 lakh crore. He said in the last five years, small savings burden was brought down from Rs 14,000 crore to Rs 12,000 crore and through other measures has ensured that growth rate in last five years was in double digit,” he said.