CM Jagan Mohan Reddy asks Centre to let Andhra Pradesh borrow more money

Vijayawada: Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy called on Prime Minister Narendra Modi on Monday and requested him to allow the state to borrow Rs 42,472 crore. He also asked the PM to ask the Centre to release the pending revenue deficit cover of Rs 18,830 crore to help the state overcome its financial crisis.

Jagan Mohan Reddy met the Prime Minister for more than an hour in New Delhi and held discussions on several issues of the state and submitted a representation containing several key and pending issues.

The CM told the PM that the sum of Rs 42,472 crore was fixed as the net borrowing ceiling for AP under the Fiscal Responsibility and Budget Management Act by the Centre for 2021-22, as against the revised net borrowing ceiling of Rs 17,923.24 crore set by the Union ministry of finance.

The CM said that the then Prime Minister Dr Manmohan Singh had assured AP that the Centre would help it overcome its revenue deficit and bridge the resource gap from the date of bifurcation as well as implement the XIV  Finance Commission recommendations through Union Budget 2014-15 allocation.

However, the resource gap estimated from June 2014 to March 31, 2015, by the Comptroller and Auditor General was Rs 16,078.76 crore. In the subsequent period, the Centre by initiating standardised expenditure brought down the revenue deficit to Rs 4,117.89 crore.

The CM stated that the then government failed to clear its bills and Pay Revision Commission arrears in 2014-15 due to shortage of funds. If the pending bills and arrears are taken into account in 2014-15, AP’s revenue deficit shot up to Rs 22,948.76 crore. The Centre had released only Rs 4,117.89 crore so far, the CM said and asked Modi for the release of the remaining amount Rs 18,830.87 crore to cover the revenue deficit.

The CM stated that AP had received the lowest income in the form of tax devolution from the Centre, which was down by 3.38 per cent as economic growth was sluggish in 2019-20 and the Coronavirus pandemic impacted the economy in 2020-21. The state had received only Rs 28,242 crore in the form of taxes against the expected Rs 34,833 crore.

Jagan Mohan Reddy told the PM that apart from the shortfall in taxes from the Centre, the state itself had spent Rs 8,000 crore to fight the Covid-19 pandemic. Despite facing such financial hardships, and having its economy buffeted by the pandemic, the YSRC government had implemented several welfare schemes with commitment in a transparent manner.

The CM asked for Modi’s intervention to get the Centre to accept the revised cost estimates of Polavaram irrigation project at Rs 55,657 crore at 2017-16 price level, and issue direction to the Union ministry of finance to release the pending bills amount of Rs 2,100 crore.

Jagan Mohan Reddy asked Modi to issue directions to the Telangana state government to release the power dues to Andhra Pradesh to the tune of Rs 6,284 crore for supply of power from June  2, 2014, to June 10, 2017, by APGenco.

The CM asked for renewal of night clearance approval pertaining to construction of Bhogapuram international airport and also help to execute integrated steel plant in Kadapa district.

Jagan meets Nirmala to discuss on SCS, others

The CM met Union minister for finance Nirmala Sitharaman and discussed several issues including special category status and other issues in New Delhi.

Jagan submitted a representation to Sitharaman seeking her intervention to resolve issues like accepting revised cost estimates of Polavaram irrigation project, the release of revenue deficit amount from the Centre, release of power arrears from Telangana and several other issues.

Jagan seeks support for developing Bhogapuram greenfield airport

Reddy sought the support of Union minister for civil aviation Jyotiraditya Scindia for development of a greenfield international airport in three years at Bhogapuram, during his visit to New Delhi.

Submitting a representation to the Union minister, Jagan Mohan Reddy said that the Centre had assured support to the state as per the AP Reorganisation Act, 2014 to develop several sectors including civil aviation.

The government felt the need for financial support for the airport as well as requisite permissions for developing it.  The CM said that as there was no chance to develop the existing airport in Visakhapatnam due to the presence of Eastern Naval Command.