Former Finance Minister Yanamala Ramakrishnudu has slammed the Jaganmohan Reddy Government for ‘mismanaging and hurting’ Andhra Pradesh state economy and its financial situation as a whole with a spree of retrograde and self-defeatist policies. Even the so-called welfare sector about which CM Jaganmohan Reddy makes tall claims was reduced to a mere farce with majority deserving sections not getting these benefits. In the first year of his rule, Jagan Reddy has miserably failed in all sectors pushing the sunrise AP into debts.
Mr. Ramakrishhnudu deplored that the development has come to a standstill while the people were being misled with a false misinformation campaign on welfare. The double digit growth rate achieved during the TDP regime was reversed and it came down to 8.16 per cent in just one year as per the Government records alone. In actual figures, the growth was just half of these claims. With an ulterior motive, the socio-economic survey was filled with lies. Revenues have come down drastically while revenue expenditure has gone up. Capital expenditure was raised two-thirds thereby causing a steep gap in fiscal deficit.
Stating that capital expenditure fell by 35 per cent in 2019-`20, Mr. Ramakrishnudu said this showed how YCP has brought nil development in its first one year rule. It is due to the utter failure of the Government. Revenue collections came down by Rs. 67,826 cr, which is about 37.9 per cent. But revenue expenditure went up by 6.96 per cent which is Rs. 8,949 Cr. Total budget expenditure also came down by Rs. 10,798 cr which is about 6.6 per cent. Whereas, the TDP achieved 100 per cent budget spendings in its five year regime. Capital expenditure fell by Rs. 7,131 Cr which is big blow to the economy.
The Opposition Leader in Council said in last one year, YCP failures were responsible for revenue deficit going up by Rs. 12,748 cr, about 91 per cent. This was due to increased and thoughtless spendings on unproductive sectors. Fiscal deficit went up by 14 per cent which is Rs. 5,053 cr. Public debt repayments and interest payments increased by Rs. 5,501 cr, nearly 20.9 per cent.
Mr. Ramakrishnudu expresed concern over market borrowings of Rs. 25,243 cr brought in just one year which came to over 72.6 per cent. If YCP goes on borrowing Rs. 60,000 cr per year, the total State debt would go up from Rs. 3,02 lakh cr now to Rs. 6.5 lakh cr by 2023-`24. The interest burden alone would go up to Rs. 3.47 lakh cr, about 115 per cent, in YCP five years. So, even interest payments would come to Rs. 34,000 cr per year. In the next four years, Jagan Reddy rule will have to get Rs. 1.6 lakh cr loans only to pay interest on loans it would take. It is obvious that YCP pushed the State into Rs. 60,000 cr debt while it took 64 years for AP to get Rs. 3 lakh cr debt over prior to Jagan Reddy regime.
The TDP leader deplored that when compared to the GSDP, debts were increased from 27 per cent to 34.5 per cent. YCP indifference to development projects was evident from how it spent just Rs. 4,000 cr on irrigation projects in 2019-`20 while TDP spent Rs. 14,000 cr in 2018-`19. Agriculture was totally ignored with false claims. Industrialisation took a back seat even as an anti-investment climate was deliberately created.
Mr. Ramakrishnudu said half of sub-plan funds meant for weaker and backward sections were not spent while even those meagre funds spent under sub-plans were being shown as welfare spendings for the downtrodden sections. All 34 welfare programmes of TDP were cancelled. Financial mismanagement of YCP has eventually caused steep socio-economic decline in the State.