The Jagan Mohan Reddy Government has been resorting to economic violations, ever since it came to power, pushing the State into a deep financial crisis, alleged former finance minister and senior TDP leader, Yanamala Ramakrishnudu.
On the one side the ruling party is ignoring budgetary proposals and on the other defying the FRBM norms. The recent letter to the State by the Union Finance Secretary, Somanathan, amply reflects these facts, Ramakrishnudu said.
The Jagan Mohan Reddy Government, bypassed the Comprehensive Financial Management System (CFMS) and paid the bills through backdoors. In total contravention of the Treasury Code, the ruling dispensation paid the bills amounting to a whopping Rs 48,284.32 cr to their close associates.
The GO 80 was released only to defend itself from the violation of norms and its backdoor operations. There are no accounts for the Rs 1.04 lakh cr raised under ways and means and another Rs 31,000 cr overdraft (OD), Ramakrishnudu deplored.
The Rs 8,305 cr raised through liquor bonds and another Rs 25,000 cr loan are totally in violation of the laid down norms under Article 293 (3) of the Constitution. The YSRCP Government is on the top in the country in borrowing funds.
In the past three years, the Government has raised funds through OD for a total of 306 days, in 2019-20, 57 days, in 2020-21, for 103 days and 2021-22, for 146 days, he said. However, in contrast the TDP during its 5-year tenure has gone for OD only for 35 days, the former finance minister felt.
Going by this trend, by that time the Jagan Reddy Government term ends, the State will be in a total debt of 10,000 lakh cr. The State is pushed into a deep financial crisis due to the Jagan Reddy Government’s faulty economic policies and the total collapse of the system.
No employment creation and no investor is willing to set up industry in the State. Following this, the youth in utter confusion and disappointment and the unemployment rate has risen to 12 per cent now, Yanamala maintained.
