Vijayawada: The new government, which is getting ready to take over, will inherit a state reeling under severe financial stress.
The debt which was around Rs 97,000 crore in 2014 has gone up manifold up in just five years to Rs 2.5 lakh crore. The new government needs to cut down on extravagant expenses which the earlier regime was used to and also the recurring expenditure which doesn’t bring in any returns.
Experts in the financial field pointed out that the new government needs to explore all the revenue generating sources and also tap the funds and grants from the Centre.
Dhone MLA and former Public Accounts Committee chairman, Buggana Rajendranath, said that the outgoing government indulged in off-budget borrowings through various government corporations with the state standing guarantor that this did not reflect in the budget. He added that the earlier government borrowed at indiscriminate interest rates burdening the state exchequer.
“The borrowings were also spent on recurring expenditure instead of capital investments that assure some returns. Most of the borrowings were used for various expenditures that did not fetch any returns. The outgoing government had also indulged in extravagant expenses.
All these need to be re-looked at and reviewed. There were many confidential GOs that were issued, under which orders were given to borrow.”
