BJP chief seeks forensic audit of AP state finances

Vijayawada: The state BJP seems to have taken up a relentless pursuit and wants the Centre to initiate probe against the state government over the alleged liquor sales ‘scam’ and state financial position.

AP BJP president D Purandeswari has not only sought an investigation by the Serious Fraud Investigation Office into the alleged irregularities that are taking place in the AP State Beverages Corporation but also urged Union Finance Minister Nirmala Sitharaman to order a special forensic audit of the state financial position.

In a representation submitted to the Union Minister, Purandeswari pointed out to the reply the Finance ministry had earlier given in Parliament that state’s debt was only Rs 4.42 lakh crore from the RBI without mentioning anything about corporation debts. She said the state had defaulted on several payments and had also submitted to the state High Court its inability to pay money for power purchases from IPPS despite the court orders to pay.

Purandeswari said that the state had not made payments to suppliers and contractors for four years and there was no provision to pay interest despite the government collecting 18 percent interest on delayed payments of property taxes, electricity bills and state GST dues.

Purandeswari said that several members of the trade bodies had sought dues paid with interest adding that if they approached court, several cases were filed against them. “A mechanism has to be in place where all genuine suppliers are paid with interest in a specified time frame of three months,” she said. Referring to the mess the state finances were in now, the BJP leader said the state’s own revenue was only Rs 90,000 crore and adding the Union government’s share of taxes of Rs 35,000 crore, the total revenue was only Rs 1,25,000 crore. However, she said, the state expenditure as per the budget figures was Rs 2,60,000 crore and the rest of it is from the Union grants or borrowings from the RBI and corporate loan diversions.

She said the people were asking how the state could borrow additional funds of Rs 50,000 crore every year on the same revenue of Rs 90,000 crore per annum. The BJP leader said that the current debt position of the state was close to Rs 11 lakh crore.

“The outgo as interest at the rate of eight percent per annum alone is Rs 88,000 crore. The repayment of the principal would be a minimum of Rs 36,000 crore if repaid in 30 years. The state would need a minimum of Rs 1.24 lakh crore per year for servicing the debt,” she said. She urged the Union Finance Minister to ensure that all the payables and sovereign guarantees to the state were included in the FRBM limit.