The YSRCP government in Andhra Pradesh headed by Chief Minister YS Jaganmohan Reddy has come under heavy criticism from the Comptroller and Auditor General of India (CAG) over financial mismanagement.

The AP government has tabled CAG report for 2019-21 in Legislative Assembly on Friday (today).

In its report, CAG said that the AP government is dealing financial matters in an ‘unconstitutional manner’.

The CAG also pointed out AP government’s ‘financial indiscipline’ in managing financial resources.

The CAG stated that the revenue earnings of AP government have increased by 3.17% in 2019-20 when compared with 2018-19.

The expenditure on account of new welfare schemes has increased by 6.91% in 2019-21 when compared with 2018-19.

The burden on account of repayment of debts has increased to over Rs 32,000 crore, the CAG stated.

Nearly two years after deciding to abolish Andhra Pradesh Legislative Council, the YSR Congress Party government took a U-turn with the state Legislative Assembly on Tuesday unanimously adopting a resolution.

Through this resolution, the state Assembly withdrew the earlier resolution seeking the abolishing of the Legislative Council, the upper house of the state legislature.

Moving the resolution, Minister for Legislative Affairs, Buggana Rajendranath recalled that the Assembly had adopted a resolution on January 27, 2020 urging the Centre to abolish the Council.

It was sent to Union Home Ministry for consideration and with response not coming and ambiguity and dilemma on the functioning of the House continuing, the government has decided to withdraw the earlier resolution, he said.

The minister said the decision for the abolition of the Council was taken to remove intentional and avoidable delays in the passing of Bills. However, despite constant persuasion of the matter at various levels and elapse of a considerable period of time of one year and 10 months, there was no action from the Centre, he said.

In the meantime, the Council has been functioning and discharging its bounden duties.

However, there was uncertainty among the members over the inordinate delay as the matter was kept pending with the Union Home Ministry and there being no time-frame for the process to be completed, it was considered necessary to put an end to the prevailing uncertainty and ambiguity.

He told the House this was affecting the dignity and decorum associated with the Council and its members.

Interestingly, this comes a day after the Jagan Mohan Reddy-led government withdrew two legislations to develop three state capitals and announced its decision to come out with a comprehensive legislation addressing concerns of all.

The decision to abolish the Council was taken after the government could not pass the Bills for trifurcation of state capital as the opposition Telugu Desam Party (TDP) in the upper house.

The passing of resolution last year had set in motion the process to do away with the bicameral system of legislature.

The resolution was passed in the absence of TDP, which stayed away from day-long special sitting to protest against the “undemocratic” move by the YSRCP government.

The resolution was sent to the Union Home Ministry for drafting a Bill and tabling it in the Lok Sabha and Rajya Sabha.

Chief Minister Jagan Mohan Reddy had then told the Assembly that the step was taken to protect the democracy as the Council was being misused by the opposition to create obstacles for the Bills passed by the Assembly which is directly elected by the people.

Reddy had said his government was proud to abolish the Council as it was being misused for political interests and was proving a burden on the state exchequer.

Jagan Mohan Reddy had said that his party can get a majority in the Council next year but public interest is paramount for them.

The YSRCP, which then had just nine members in the 58-member Council, has now gained an upper hand.

Interestingly, it was Jagan Mohan Reddy’s father Y.S. Rajasekhara Reddy as the chief minister of then undivided Andhra Pradesh who had got the Council revived in 2007. This was 22 years after the upper house was abolished during the TDP regime of N.T. Rama Rao in 1985.

The YSRCP government in Andhra Pradesh issued orders suspending three officials in finance department on charges of leaking confidential information on state government’s financial condition to media.

Of them, one is secretary-level officer and two are section officers.

The suspension orders were issued as per the directions of AP Chief Minister YS Jaganmohan Reddy.

The government claimed that they were suspended following the investigation done by vigilance department which detected media leaks by these three officials.

Jagan government has been facing severe embarrassment for the past few weeks with reports of financial mismanagement and bad financial condition of state government appearing in media prominently almost every day.

With this contractors are not coming forward to take up works and banks are refusing to give loans to AP government doubting repayment capacity.

Jagan government was shocked over confidential information leaking to media from finance department and ordered vigilance inquiry.

The YSRCP government in Andhra Pradesh has already pushed AP into a severe financial crisis within two years of coming to power.

Today AP tops in India in taking loans from banks and various financial instutions.

The recent CAG report also certified that AP is No.1 in loans.

Despite this, the Jagan government is least bothered to put state’s financial condition on track by adopting strict financial discipline.

It continues to waste public money for the benefit of YSRCP leaders.

Latest, Jagan government issued a GO (government order) extending Rs 20 lakh financial assistance to ministers in YSRCP government to purchase cars.

Earlier the limit was Rs 10 lakh which the Jagan government has now increased to Rs 20 lakh.

One wonders whether ministers are so poor in AP that they cannot afford to buy even cars on their own and need government’s financial assistance to purchase cars.

Already YSRCP ministers, MLAs and other leaders are accused of minting crores of rupees every month through illegal sand mining, liquor business, mining business etc and what not.

Leave ministers, even their family members and friends are roaming in luxurious cars worth several crores of rupees.

Where is the need for government to extend financial assistance to YSRP ministers, MLAs, MLCs to buy cars?