AP debt is Rs 4 lakh crore, 15.42 pc annual increase in debts under Jagan government
Special Secretary to CM (finance and economic affairs) Duvvuri Krishna said the state is taking loans as per RBI and central govt norms
VIJAYAWADA: The debt of Andhra Pradesh has been put at Rs 4 lakh crore. The debts increased by 20% annually till 2019. From 2020, there is an increase of 15.42% under the Jagan Mohan Reddy dispensation. This was stated by Special Secretary to CM (finance and economic affairs) Duvvuri Krishna, at a press meet here on Tuesday.
He said the state government is taking loans as per RBI and central government norms but “untruths are being propagated about the financial situation of the state.”
According to the RBI report, at the time of state bifurcation (2014), the government debt was Rs 1,18,050 crore. By 2019, the debt increased to Rs 2.71 lakh crore.
By March 2023, AP's debts level reached Rs 4 lakh crore. While the debt increased by 20 per cent every year during the Telugu Desam period (2014-19), the annual debt increase during the term of the YSRC government is only 15.42 per cent, the officials stated.
He said, “It is incorrect to attribute all the loans of AP to the present government. We are taking loans as per the norms of FRMB and all these calculations are confirmed by CAG and RBI.”
“The debt of electricity DISCOMS was Rs 2893 crore before bifurcation (2014) but it increased to Rs 21,541 crore during the TD period. This debt was reduced to Rs 11,602 crore under the Jagan government.”
The total debts of power companies were Rs 32,596.27 crore at the time of bifurcation. This increased to Rs 91,137 crore during the TD term. These debts increased to Rs 1,09,094 crore during the term of the present government.”
The debts of power distribution companies increased by 30.74 per cent in the previous TD government’s term, and the debts decreased by 5.79 per cent under the term of the present government.
Krishna questioned how the government can make loans against the Constitutional provisions and against law. Loans will be given subject to the central limits. Banks will give loans only if the rules are followed.
The debts of Rs 1,53,346 crore at the time of formation of the TD government in 2014 increased to Rs 4,12,288 crore by 2019. The TD government incurred debts of Rs 2,58,941 crore in five years.
The official said the RBI did not warn AP when the state’s debt increased by 7.45 per cent during the TD term. Why would the RBI warn AP about the debt now, when it is less than 5.21 per cent under the Jagan government without any increase, he asked.
Duvvuri Krishna explained the outstanding liabilities of the state government and PSUs. As of June 2014, it was 1,53,346.80 crore, which increased to Rs 4,12,288 crore by May 2019 during the TD government’s term. This was an increase of Rs 2,58,941.20 crore under the TD government and the liabilities increased as per GSDP ratio during the five-year TD period was 7.45 per cent.
The official said the outstanding liabilities of state govt and PSUs as of May 2019 was Rs 4,12,288.00 crore which increased to Rs 6,38,212.72 crore by March 2023. The Rs 2,25,924.72 crore is the increase in liabilities during the YSRC’s term. The liabilities increased as per GSDP ratio during the YSRC period is only 5.21 per cent,” he stated.
