Amaravati: White paper sought on financial crunch

Amaravati: TDP MLC P Ashok Babu on Friday demanded that the state government release a white paper on the state's financial situation in view of the alarming reports that even Prime Minister Narendra Modi has taken a very serious view of the excessive loans taken by it in violation of the rules and FRBM limits.

Ashok Babu said that the state government was in such a position that it had no funds to pay salaries to its employees next month. It was a fact that the State had no budget for paying salaries and pensions now. Chief Minister Y S Jagan Mohan Reddy and finance minister Buggana Rajendranath Reddy owed an explanation to the people on the deep financial crisis and resultant reports about the PM's seriousness.

Addressing a press conference here, the TDP MLC accused the Jagan regime and the ruling YSRCP leaders of propagating lies on the loans of the state. In just two years, the YSRCP regime brought over Rs 2.40 Lakh crore loans. In the past, the ruling party leaders raised huge concerns and did a lot of vicious propaganda that Rs 3 Lakh crore loans were made under the TDP regime.

He said that now, the overall debt burden of AP came to over Rs 5 Lakh crore. The government got Rs 2 Lakh crore revenue in the past two years while it spent Rs 95,000 crore on the welfare programmes. The Central government was now stopping all new loans just because the AP government was taking massive loans disproportionate to its revenue. If the CM would not clarify on the state's financial situation now, then it would be deemed that the PM had taken a serious view of the AP loans.

The TDP leader asked whether it was not a fact that the state government would have to take Rs 6,000 crore loans to pay salaries and social pensions next month. Moreover, another Rs 4,500 crore was needed for the monthly debt servicing. The YSRCP government would require at least Rs 10,000 crore loans every month to pay salaries, give pensions and implement various programmes.

The finance minister and his finance secretary were making hectic efforts in Delhi to get loans but there seemed to be huge problems.