White Paper Exposes How CBN Hurt AP Financially

Wed Jul 10 2019 22:35:08 GMT+0530 (IST)

YSR Government released White Paper to make people aware of how AP got plunged into huge financial crisis in the past five years of TDP rule.

Finance Minister Buggana Rajendranath Reddy told YCP Government had to deal with huge debt, almost empty treasury and unpaid bills amounting to thousands of crores. He blamed TDP Government's poor governance, financial mismanagement and corruption for the dire situation of the state.

YCP Government estimates the debt of AP has risen to Rs 2.58 lakh crore in the past 5 years. While Off-Budget Borrowings amount to Rs 58,000 crore, Outstanding Dues to Power Sector (Rs 18,375 crore), Civil Supplies Department (Rs 10,000 crore) and Other Departments (Rs 18,000 crore) are massive. Revenue Deficit which was Rs 16,078 crore during 2014-15 went up to Rs 66,362 crore by 2018-19.

One of the major reasons behind the Financial Mess of AP was raising loans for unproductive means by the previous Government. Diversion of funds meant for one purpose to the other resulted in severe damage to many sectors. Pasupu Kunkuma Scheme alone costed the state exchequer Rs 4,800 crore.