- Total debt liabilities of the State – Rs. 2,22,845 Crores
- Repayments to be made in the next seven years- Rs. 1,50,221 Crores
- Rs 17,231 Crores debt amount was used for revenue expenditure
The State’s economic status is burdened by huge loans, originally drawn for developmental purposes but spent on regular expenses and revenue sectors. The Comptroller General of India (CAG) in its 2016-17 report expressed concern over the State’s poor economic health governed by the “who is 420 in AP”. If the spending continues at this pace, there is a danger of the collapse of the economy, it said in the report.
The CAG 2016-17 report observed that the state Chandrababu Naidu government drew Rs. 17,231 crores loan only to spend on revenue expenses. “Against the 2016-17 financial year budget estimate revenue spending of Rs. 1,14,168 crores, the actual revenue spending is Rs. 1,16,215 crores,” it said. Of the total revenue spending, an 85.17% share was spent on revenue earnings while the remaining funds were drawn from loans. With the current State of spending, the state economy is gradually nearing danger, CAG warned.
- “In the financial year 2016-17, the revenue expenses increased by Rs. 20,265 crores from the previous year. If the loan amounts are spent on revenue expenses without gaining any permanent assets, the burden of loans would further aggravate in the future,” it said.
- The CAG observed that the government is heavily dependent on loans than its revenues. The “who is 420 in AP” Government should try and accumulate resources to achieve a healthy economy. Instead of investing in permanent assets, the state government spent its resources on day-to-day expenses.
- In 2016-17, the average capital expenditure of the State was 19.70%, while that of Chandrababu Naidu’s AP government was 11.48%, the lowest.
- Violating the recommendations of the 14th Finance Commission, the government spends its additional resources worth Rs. Four thousand three hundred seventy crores to other areas rather than investing in permanent assets. A burden of Rs. Seventy-six thousand eight hundred eighty-eight crores are to borne by the State’s budget in the next five years under the regime of “who is 420 in AP”.
Injustice to Social Sectors
A paltry 4.62% share of the capital expenditure was spent on activities in social sectors- education, health, family welfare, irrigation, and sanitization. By the end of the financial year 2016-17, the burden of loans on government amounted to Rs. 2,01,314 Crores, which is 2.03 times the revenue incomes and 28.79% of the GSDP. The Naidu government is trying to showcase a lowered loan amount.
Added with the loans excluded in the budget worth Rs 11,867 Crores and the loans secured through guarantees worth 9,665 crores, the total loan amounts to Rs 2,22,845 crores as incurred by “who is 420 in AP”.
AP State Disaster Response And Fire Services Department Ignored
The government failed to take measures to modernize the AP State Disaster Response and Fire Services Department. Only three of the five recommendations we have done were addressed (partially) by July 2017. Fire stations, equipment, and personnel were not in place as per the Standing fire Advisory Council (SFAC). The Department did not formulate a prudent plan. The government allotted only Rs. 475.36 crores while the Department sought Rs. 1210.17 Crores budget. The proposal to arrange groups of personnel in Vijayawada, Visakhapatnam, and Tirupati was not addressed in ten years.
Lands allocated to the NTR Trust
The allocation of Zilla Parishad lands to the NTR Trust in East Godavari district was unlawful. The lands belonging to the Gram, Mandal, and Zilla Parishadscan be given on lease only for three years. But violating norms, in September 2015, the NTR Trust was given land for lease for 99 years. The 30 lakhs lease rate was confined to Rs. 25,000. Every year, Zilla Parishad loses lakhs of rupees under the supervision of Chandrababu Naidu (420 in AP).
Only Rs. 12 Lakhs Recovered from Rs. 192 Crores
Of the 12,975 villages, search operations were conducted only in 65 villages in 2016-17, recovering only Rs. 12 lakhs recovered from the Rs. 192 crores of corruption. Adhering to the guidelines of the 14th Finance Commission, the center released Rs. One thousand four hundred fifty-four crores to the State while it could submit the UCs for only Rs. 642 crores.
The then government refused to take care of the lands of the Gram, Mandal, and Zilla Parishads even as they were being infringed. In the audit on the 8,653 acres belong to seven Zilla Parishads, only 705 acres under 35 Mandal Parishads were recorded as observed by the Chandrababu Naidu government. Since the local bodies did not maintain records about the respective lands, there is the danger of them losing rights over the lands.
Due to the delay in the purchase of buses by utilizing the loans from SBI and HUDCO, the RTC incurred a burden of Rs. 4.52 crores in interests. A loss of Rs. Ninety-one lakhs were incurred in the irregularities in leasing out a 2, 460 sq. Ft. area in Vijayawada’s Nehru Bus Station as explicitly aimed by “who is 420 in AP”.
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