Andhra Pradesh

Financial crisis deepens in Andhra Pradesh, alleges TDP leader

Payyavula Keshav. File

Payyavula Keshav. File | Photo Credit: PRASAD RVS

 The Telugu Desam Party (TDP) on Wednesday expressed concern over the “deeper financial crisis” in Andhra Pradesh, which is pushing the State into a state of “financial emergency.”

Addressing the media virtually, TDP MLA and Chairman of the Public Accounts Committee Payyavula Keshav that the TDP had been saying that a “Sri Lanka kind situation” was prevailing in the State.

Andhra Pradesh’s borrowings were four times the borrowings of Sri Lanka. The Central Government had flagged the “disturbing trends” in 10 States, including Andhra Pradesh, he said.

High off-budget borrowings, escrowing of future revenue and loans secured against public assets were the primary reasons for the disastrous situation in Andhra Pradesh, he said.

“If the State faces a situation like Sri Lanka, leaders may run away from the State, but the common man is the worst-hit as he will not find a place to go,” he said, asked whether the State government was ready for an open and special audit on the issue.

The TDP leader said a special financial situation was prevailing in the State. Accounts for ₹40,000 crore to ₹50,000 crore were not made public yet. “If that too comes into public domain, one can imagine the situation,” he said.

The Reserve Bank of India had prepared the risk analysis and the Union Finance Ministry made a presentation on this, in which Andhra Pradesh was either on top or in second place in all the index.

The risk analysis was made strictly on the guidelines of the International Monetary Fund (IMF).

“This is only a tip of the iceberg,” he said, adding, an in-depth study should be done on the financial situation of the State.

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Printable version | Jul 21, 2022 8:08:35 am |