KAKINADA: Former MP from Rajamahendravaram, Vundavalli Arunkumar, said on Saturday that Andhra Pradesh has been put in a huge debt trap involving a sum of Rs 6 lakh crore, which required a payment of interest at the rate of 7 per cent. “This is not a good sign for the state,” he said.
He said the state government has lost its credit-worthiness and the banks were demanding that henceforth some 10 per cent of the value should be mortgaged if they were to give loans to the AP Government.
Arunkumar expressed the fear that the government was moving towards insolvency under chief minister Jaganmohan Reddy and urged the government to publish a white paper on the financial condition of the state and how it can repay the loans.
Arun Kumar, who was a close associate of the late chief minister Rajasekhara Reddy, said, “The state government is taking loans right, left and centre. When Jagan assumed charge as CM, the outstanding debt was Rs 90,000 crore. In addition to this, the present government has raised Rs 2,500 crore, pledging the circuit house and other assets in Visakhapatnam.
“The people can imagine how critical the situation is’’ he said and predicted that even up to March-2022, it may be difficult for Jagan to run the government. “What will happen after March, I am afraid to even imagine.’’
Arun Kumar said Prime Minister Narendra Modi is also taking the country to a debt trap. His government has taken loans of the size no other government in the past did. “No one is able to question Modi,” he said.
Meanwhile, AP housing minister Cherukuwada Srirangantha Raju challenged the Opposition to dare say that the welfare schemes introduced by the chief minister should be stopped. Participating as chief guest at the Asara scheme meeting at Penumantra village in West Godavari district on Saturday, Sriranganatha Raju said the Opposition parties are saying that the government is taking loans indiscriminately without considering the repayment capacity. Well, can these opposition parties demand of the government to stop all the welfare schemes? Jagan wants to improve the living conditions of the poor,” he stressed.
Raju said paddy would be procured through Rythu Bharosa Kendras. “Jagan promised the Self Help Group women to clear the debts of SHGs in four phases. He was fulfilling his promises by crediting the amounts directly to the accounts of the SHGs.”
