Intensifying its attack on the Andhra Pradesh government for the “financial irregularities” allegedly committed by it in the last four-and-a-half years, BJP State president Daggubati Purandeswari submitted a representation to Union Finance Minister Nirmala Sitharaman during her recent visit, seeking special forensic audit of the State’s financial position, and a probe into the affairs of the State-owned corporations such as the A.P. State Beverages Corporation Limited, in public interest.
Ms. Purandeswari said the party estimated the State’s total debt to be ₹10.77 lakh crore, but the Finance Ministry had, in a written reply in Parliament, pegged it at only ₹4.42 lakh crore, which were the funds raised from the Reserve Bank of India (RBI). There was no mention of the debts of corporations, she said.
She further said the State defaulted on several payments and had also informed its inability to pay for the power purchased from the Independent Power Producers, to the High Court in spite of orders of the court to clear its dues.
The State did not make payments to suppliers and contractors for over four years, and had also not paid the interest thereof, while collecting 18% interest on delayed payments of municipal taxes, electricity bills, and State GST dues, she said.
Ms. Purandeswari said the State expenditure was ₹2,60,000 crore, and it was getting huge sums in the form of grants from the Central government and borrowings from the RBI. It (the State) was borrowing ₹50,000 crore every year on the same revenue of ₹90,000 crore.
The State needs a minimum of ₹1.24 lakh crore per year for debt servicing and clearing the dues to suppliers / contractors legally at minimal interest rates. The Centre should ensure that all the State government payables and sovereign guarantees were within the FRBM limits.
