VIJAYAWADA: Alleging that the YS Jagan Mohan Reddy government has resorted to various financial irregularities and the total debt of the State is estimated at Rs 11 lakh crore, BJP chief Daggubati Purandeswari urged Union Finance Minister Nirmala Sitharaman to conduct a forensic audit of AP finances and publish a white paper on its financial position.
In a two-page memorandum submitted to the Union Minister in Vijayawada, she said the white paper should contain the details of payable and corporation debts and mortgaged assets and sovereign guarantees.
Pointing out that the Ministry of Finance, in a written reply to an MP’s query during the recent Parliament session, stated that Rs 4.42 lakh crore was taken from the Reserve Bank of India without mentioning anything about other debts of AP, including corporation debts, she said, “By highlighting the Centre’s reply, the State government has successfully thwarted the BJP’s efforts to protect the AP’s interests pertaining to stainability of growth in the future.”
She indirectly suggested that the Finance Ministry further elaborate on the issue to give a clear picture.
The BJP chief also said the YS Jagan Mohan Reddy government had defaulted on several payments and also submitted to the High Court its inability to pay money for power purchases from IPPs in spite of the court orders. “The State government has not made payments to suppliers and contractors for over four years and there is no provision to pay interest though it is collecting 18% interest on delayed payments of taxes, electricity bills and GST dues,” she explained.
Stating that cases are being foisted against traders, if they approach court to get the dues cleared, she urged the Finance Minister to set up a mechanism where all genuine suppliers are paid with interest in a specified time frame of three months as their loans are becoming NPAs leading to a cascading effect on others.
“AP’s own revenue at present is Rs 90,000 crore only and its tax share from the Centre is Rs 35,000 crore, taking the total to Rs 1.25 lakh crore. However, the State’s expenditure as per the budget is Rs 2.60 lakh crore. The balance is either from the Central grants or borrowing from the RBI and corporation diversions,” she elaborated and sought to know how a State can borrow every year an additional Rs 50,000 crore on the total revenue of Rs 90,000 crore.
“The current debt of the State is Rs 11 lakh crore and the interest at 8% per annum amounts to Rs 88,000 crore. A minimum of Rs 36,000 crore needs to be paid per year, if the total debt is repaid in 30 years. The State will need a minimum of Rs 1.24 lakh crore per year for servicing the debt and repayment if it pays all suppliers legally with minimal interest. The future of AP will be uncertain if no preventive steps are taken now,” she added.
Reiterating her charges against the AP Beverages Corporation that it was selling cheap liquor and putting people’s lives at risk, she maintained that the revenue in excess of Rs 30,000 crore was being diverted in cash.“I seek an investigation by SFIO (Serious Fraud Investigation Office) into all the distilleries in AP and APBCL to ascertain truth,” she added.