Raising serious concern over an “unprecedented financial crisis in the State,” former Finance Minister and TDP Member of Legislative Council (MLC) Yanamala Ramakrishnudu has urged the Union government to declare a financial emergency in Andhra Pradesh.
Addressing the media here on Saturday, Mr. Ramakrishnudu said a situation had emerged that endangered the State’s financial stability. “The economy is in a state of flux, and there is a need to declare financial emergency under Article 360 of the Constitution,” he insisted.
CBI probe sought
Mr. Ramakrishnudu also appealed to the Union government to order a CBI inquiry into the observations made by the Comptroller and Auditor General (CAG) on “possible misappropriation of ₹48,284 crore public funds during 2020-21.”
“The CBI should also find out why the YSRCP government is not ready to give clarifications sought repeatedly by the statutory auditor,” he demanded.
The immediate intervention of the Central government was needed to prevent the State from slipping into an irrevocable crisis, Mr. Ramakrishnudu said, and expressed fears that going by the scale of the State government’s “financial mismanagement,” the State debt might touch ₹9 lakh crore by 2024.
Going by the borrowing spree of the YSRCP government, the State, in the days to come, would require ₹31,000 crore annually to repay the interest and principal debts, the TDP leader said.
“If Chief Minister Y.S. Jagan Mohan Reddy is allowed to continue his misrule, none can save the State from the financial crisis,” he warned.
He said the government had not spent anything on development projects, while the expenditure incurred on implementation of welfare schemes was not in sync with Mr. Jagan’s tall promises.
‘Norms violated’
The State government’s policies were violative of the Fiscal Responsibility and Budget Management (FRBM) Act, treasury code, and the court verdicts, he alleged.
In 2020-21, the government had spent ₹1.73 lakh crore, but failed to show proper bills for ₹48,284 crore expenditure. The CAG had raised doubts about misuse of this unaccounted money, Mr. Ramakrishnudu said.
Only a CBI probe could bring to light the treasury code violations resorted to by those in the government, he observed.
