Andhra Pradesh govt lacks fiscal discipline, says YS Jagan Mohan Reddy

Former Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy on Thursday accused the TDP-led NDA government of lacking fiscal discipline and exceeding 50 per cent of the borrowings incurred by the previous YSRCP regime in just 13 months.

Reddy said that the Andhra Pradesh Mineral Development Corporation (APMDC) concluded the second tranche of its NCD (bond) issuance at a coupon rate of 9.3 per cent on June 25 to raise Rs 5,526 crore, taking the aggregate value of the issuance to Rs 9,000 crore.”With this NCD issuance, the total budget and off-budget borrowings availed and secured in this 13-month period by the TDP alliance government exceeded 50 per cent of what was borrowed by (the) previous government over a 5 year period,” said Reddy in a post on ’X’.

Alleging that the N Chandrababu Naidu-led government disregards constitutional framework, the YSRCP supremo said APMDC went for the second tranche of its NCD (bond) issuance despite this matter being admitted in the Andhra Pradesh High Court and notices served over it.

"Further, it is quite apparent that the proceeds of the issuance would be utilised for financing government revenue expenditure,” he said.”With total disregard to the constitutional provisions and in an unprecedented manner,” Reddy alleged that the NDA alliance government granted private parties access to the consolidated fund of the state through RBI direct debit mandate.Owing to this arrangement, the opposition leader claimed that private parties ”can access the state exchequer and withdraw funds without any requirement of any action from the state government officials.”