FRBM norms thrown to winds by Jagan Govt, says TDP

The Telugu Desam Party (TDP) on Saturday expressed serious concern over the alarming economic situation in the State.

Party spokesperson Kommareddy Pattabhiram told media persons at the party office here that for the past few months the whole nation has been discussing the financial crisis in the State, particularly after the scary Sri Lankan situation, the situation is more alarming. Serious debates are going on in the State going for debts under various heads, including in the name of corporations, and the huge amount of interest being paid, he said.

Pointing out that a whopping Rs 25,000 cr loan is raised from different banks by setting up a company in the name of Andhra Pradesh State Development Corporation and this amount is being diverted, Pattabhiram said and clarified that the TDP is opposing only such diversion of funds but not spending money to take up welfare schemes.

Even the Reserve Bank of India (RBI) pointed out that the guidelines issued by the bank are thrown to the winds while raising loans. After observing all this, the RBI issued revised guidelines to the scheduled banks on June 14, 2022 that the norms be strictly followed.

When the RBI issued such clear instructions, the State Government violated all the norms and issued various GOs setting up corporations like the APSDC, he said adding that this is the performance of the State Government. “Implementation and funding of Jagananna Amma Vodi Programme for the financial year 2020-21 by Andhra Pradesh State Development Corporation” mentioned in the GO No 3, issued on January 8, 2021, is nothing but to swallow the funds, he said.

The agreement made in the name of the Governor clearly mentions that even if the State revenue falls after imposing prohibition and the revenue from the Excise Departments falls, the banks are not responsible as the State Government stands guarantee to repay. Also, the pact clearly mentions that the State Government is considered as the principal debtor.

At least Rs 10 lakh crore is credited to Mr Jagan accounts and the people should, at least now, realise the economic condition of the State after the RBI’s letter and what reply the Finance Minister, Mr Buggana Rjendranath Reddy, will give now, Pattabhi asked.