Yanamala blames YSRCP policies for collapse of state economy

Vijayawada: Blaming the policies of previous YSRCP government for the collapse of state’s economy, senior TDP leader and former finance minister and MLC Yanamala Ramakrishnudu said the NDA government is now trying to bringing the finances back on track.

Taking part discussion state budget in Legislative Council on Thursday, Ramakrishnudu said the capital expenditure had drastically declined in the state in five years of YSRCP rule,resulting in collapse of the economy.

When some YSRCP Council members alleged that the state government failed to implement the Super Six promises and allocations were meagre in budget, the TDP member said the Andhra Pradesh rank had slipped from top five to 11 in the country in the development due to the policies of the YSRCP government. “Unproductive expenditure had increased drastically in the state in YSRCP rule leading to negative growth. During TDP rule earlier, AP achieved 10 per cent GDP growth from 2014 to 2019 while negative growth of four per cent recorded in the YSRCP tenure,” he said.

He said overdrafts had increased thus raising burden of interest and loan repayments. Around Rs 50,000 crore has to be paid towards debt servicing every year by the government.

He alleged the YSRCP government had never cared about the economy despite alerts by him. The TDP senior leader pointed out YSRCP never conducted PAC meetings and discussed the economic scenario of the state. Then government had also not given accurate details of the economy to the CAG.

Ramakrishnudu said bill worth Rs 1.3 lakh crore were pending which have to be cleared by the current government.

He said the AP has to achieve 15 per cent GSDP growth rate in order to reach Vision 2047 target set by the state government, adding that such a rate is difficult though not impossible.

Ramakrishnudu lamented that capital expenditure was reduced to single digit in five years that caused huge loss to the state. Besides, revenue and unproductive expenditure increased leading to increase of loans from various sources and financial institutions. He said the state government had taken six types of loans.

Referring to economy, the TDP leader said the aquaculture, dairy, agriculture, industry and other sectors were badly affected in the state. While the state achieved 35 per cent growth in aquaculture during TDP rule, it fell to 20 per cent later because the YSRCP government did not provide subsidies to farmers.

He asked the Leader of the Opposition in the Council Botcha Satyanarayana to give details of the borrowings made by the YSRCP government. “Loans from Central government had increased by 68 per cent. The state government under YSRCP went for overdraft every alternate day,” he said.

Ramakrishnudu felt capital expenditure should be more to achieve economic development by any state but it had not happened in AP under YSRCP rule and capital expenditure was confined to only single digit and loans had increased exorbitantly leading to collapse of state economy.