The central government has once again focused on the heavy borrowings being done by the Andhra Pradesh government. In what can be termed as a warning, the Centre sought details of the off-Budget loans the YCP government had taken this year.
Following complaints that the AP government is hoodwinking the Centre and borrowing left, right and Centre through various means, despite being allowed to take loans beyond the FRMB limits, the officials concerned have taken a serious view of it.
The Principal Accountant General’s office shot off a missive asking for details of the loans taken by the government, expressing dissatisfaction over the reply given to the Centre’s query on debts earlier. Reportedly, officials in the AP finance department are worried over submitting the details of the borrowings taken in the name of public sector undertakings, corporations and societies, for which the state government stood as the guarantor.
In the past, the Union finance department had sent a 26-page letter asking the AP government to submit complete details of the loans taken beyond the FRMB limit, state’s income and expenditure. To this, the state government furnished some information but the officials at the Centre warned of complaining to the DoPT, for submitting incomplete details.
In the latest move, the Principal Accountant General’s office asked for the details and the finance department officials in the state know pretty well that if they do not give the info, the higher officials can easily get it from the banks.
Recently, the state government secured loans worth Rs 25,000 crore from a consortium of six banks. Earlier, the state also drew loans of Rs 75,000 crore in the name of AP Civil Supplies Corporation and others. These huge loans were taken by the state in the last one year itself.
On one hand, the YCP government has increased taxes and on the other, it is borrowing heavily but what is it doing with all the money, wondered the opposition parties. Even welfare schemes are being implemented for a very few number of people and for this, the money being collected through taxes is sufficient, a senior TDP leader said.
The public is also unable to understand where is all the money going.