VIJAYAWADA: Off-budget borrowings of the Andhra Pradesh government stood at Rs 79,815 crore during the last two financial years, Union Minister of State for Finance Pankaj Chaudhary said in a written reply to TDP Kanakamedala Ravindra Kumar’s query in Rajya Sabha on Tuesday.
Kumar sought to know if the Centre has taken note of the fact that the State government finances its socio-economic measures through debts and loans against guarantees instead of making efforts to mobilise additional resources to finance them. Chaudhary explained that as per information received, the State government issued guarantees to the State Public Sectors and Corporations for availing loans to the tune of Rs 22,366.08 crore in FY 2021-22 and Rs 57,449.55 crore during FY 2022-23.
He said AP has enacted the Fiscal Responsibility and Budget Management (FRBM) Act, making the State government responsible to ensure prudence in fiscal management and stability by progressive elimination of revenue deficit, reduction in fiscal deficit, prudent debt management consistent with fiscal sustainability and greater transparency in fiscal operations.
“Compliance to the State FRBM Act, including monitoring of debts of State-owned entities guaranteed by the State, is monitored by the Legislature of Andhra Pradesh,” the Union minister pointed out.
Asked about the Centre issuing any advisory to the State government on the borrowings, he replied that instances of borrowings by certain State Public Sector Companies, Special Purpose Vehicles (SPVs) and other equivalent instruments, where principal and/or interest are to be serviced out of the State Budgets, had come to the notice of the Ministry of Finance.