VIJAYAWADA: Special Secretary to the CM, Duvvuri Krishna, on Thursday objected to the comparison of finances of a state with the financial situation in Sri Lanka or with the huge financial debt there. AP has taken loans only by following the norms set by the central government, he has stressed.
Krishna addressed the media here with YSRC general secretary and government adviser (public affairs) Sajjala Ramakrishna. He said that, since 2014, the previous Telugu Desam government has been allowed to borrow only up to 3 per cent of the GDP. In no single year did they borrow under that limit. As a result, the fiscal deficit rose to 3.95 per cent in 2014-15, 3.65 per cent in 2015-16, 4.52 per cent in 2016-17, 4.12 per cent in 2017-18, and 4.06 per cent in 2018-19.
“After the present government came to power, the fiscal deficit in 2020-21 was 5.44 per cent. Due to Covid, the state suffered financially. All the states as also the Center had to face the same situation. However, due to the steps taken by the present government, AP’s debt decreased to 2.1 per cent of the GDP in 2021-22,” he said.
The special secretary, speaking about the state’s finances and debt situation in FY22, referred to the provisional figures released by the CAG. “It showed that, for the fiscal 2021-22, the AP government managed its finances in the fiscally most-prudent manner, with the revenue deficit having been limited to Rs 8,370.51 crore and the fiscal deficit to Rs 25,194.62 crore.
“This translates to a fiscal deficit to GSDP ratio of less than 2.10 per cent.”
The special secretary said, “In the light of the fact that the 15th Finance Commission has recommended a fiscal deficit to GSDP ratio of 4.5 per cent for the financial year 2021-22, the performance of the state can be termed as being extremely prudent.”
Ramakrishna Reddy said, “During the term of Telugu Desam, there was no account for more than Rs 1.10 crore. The Center had answered thus, a question from a TD MP in the Lok Sabha about the state’s finances. Yet, the TD leaders are carrying on with a propaganda that the state is in a financial mess. They are unnecessarily creating confusion among the people."
