Seeking to turn the tables, Finance Minister Buggana Rajendranath Reddy on Friday asserted that the finances turned red during the Telugu Desam Party (TDP) rule in the State. The total liabilities, including off budget borrowings, stood at about ₹65,000 crore when the YSR Congress Party came to power in June.
The pending payments alone were close to ₹42,000 crore. The previous government diverted crores of rupees borrowed through corporations for other purposes, he said addressing a press conference at the Secretariat.
OverdraftADVERTISEMENT
ADVERTISEMENT
Referring to TDP national president N. Chandrababu Naidu and former Finance Minister Yanamala Ramkrishnudu’s comments on the State finances, Mr. Reddy asserted that they had no locus standi to comment on the financial management governance. The previous government opted for the overdraft (OD) for 43 days in 2018, and for 14 days in April-May. In a single day, it borrowed ₹3,358 crore worth loans in March, just before elections, he said. “In comparison, our government did not go for the OD in July, August and September. The government went for OD for mere eight days in June. It shows the financial health of the State,” he said.
The Finance Minister recalled that the public debt increased to ₹2.58 lakh crore by 2018-19 from ₹1.23 lakh crore in 2014. If all liabilities were to be added, it would touch ₹3.62 lakh crore. Usually, the pending bills by outgoing government would not be more than ₹5,000 crore. But, the TDP government has to clear bills worth of ₹41,900 crore, Mr. Reddy said.
Clearing billsADVERTISEMENT
ADVERTISEMENT
While it cleared bills of all big companies and contractors of its choice, the bills relating to Mid Day Meals, DIET charges, power dues, local bodies, etc., were kept pending for 9 to 12 months, Mr. Reddy pointed out adding, “It is too early to judge a government which was formed in June. It takes some to clear the mess created by the previous government.”
To a question, the Minister said the government would have to bring down dependence on off budget borrowings in a phased manner. It was not possible to discontinue the off Budget borrowings at one go, he added.