Accusing the YSRCP government of raising loans in violation of the Fiscal Responsibility and Budget Management (FRBM) norms, BJP State general secretary and MLC P.V.N. Madhav has said that a delegation of his party would complain to the Union Finance Minister and the RBI Governor about the ‘financial mismanagement’.
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Mr. Madhav described what Finance Minister Buggana Rajendranath Reddy had been doing for the last two years as ‘magic’. “The Finance Minister has been painting a rosy picture of the State’s finances by glossing over some misdeeds for which he apparently has no proper explanation,” the MLC told the media here on Monday.
Mr. Madhav alleged that the State government was diverting about ₹4,100 crore given by the Central government for the welfare of Scheduled Castes (SCs) and Scheduled Tribes (Sts) to schemes such as the Jagananna Vidya Deevena and the YSR Cheyutha.
“Other funds sanctioned by the Centre are also being misused. The State government is resorting to massive borrowings for implementing welfare schemes including its flagship Navaratnalu programmes,” he said.
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Mr. Madhav said that the Central government had relaxed the FRBM rules to help the States grapple with the impact of coronavirus pandemic. However, the State government is taking aadvantage of it and it is evident from a ₹19,000-crore debt mobilised in April alone,” he said.
The BJP MLC further alleged that many expenses did not have the sanction under the Finance Bill and the 2021-22 budget was replete with ‘falsified accounts’.
“The Centre has the capability to service its debt, unlike the Andhra Peradesh government which is in dire straits due to bifurcation,” Mr. Madhav said in response to a comment purportedly made by Mr. Rajendranath Reddy that the NDA government had to borrow about ₹18 lakh crore to keep itself afloat.