Andhra Pradesh finances a worrying factor, says BJP

Three capitals concept is a blunder, says I.Y.R. Krishna Rao

The Bharatiya Janata Party (BJP) Andhra Pradesh unit has expressed serious concern over the precarious financial condition and stressed the need to rein in the State finances.  The BJP also asserted that the ‘three capitals concept’ itself was a blunder. 

Addressing a press conference here on Friday, BJP leader and chairman of  the BJP’s committee to identify public issues I.Y.R. Krishna Rao said there was no fiscal discipline in the State. The debts were much higher than the capital expenditure. It was the responsibility of the State government to strike a balance between welfare and development. Andhra Pradesh availed itself of over draft for 146 days in a  year. A 200% revenue deficit was a worrying factor. It was nothing short of hoodwinking the people to assert that Andhra Pradesh was faring well with its finances, he said. 

Mr. Krishna Rao, who served as the first Chief Secretary of residuary AP, said that the debts were about ₹1 lakh crore on Andhra Pradesh when combined Andhra Pradesh was bifurcated into Andhra Pradesh and Telangana. Later, the then Chief Minister N. Chandrababu Naidu took to it ₹2 lakh crore. Under present Chief Minister Y.S.  Jagan Mohan Reddy, the State debts touched ₹3.5 lakh crore. The onus lay on the Chief Minister to inform the State Assembly and the people how the debts borrowed by the government were spent, he said.

Mr. Jagan was making tall claims on the State finances, but it doesn’t reflect the ground realities. The employees used to come up with petitions for additional facilities as Deepavali festival approached. Now, the government was unable to pay the salaries, leave alone the additional facilities. The government had to run from pillar to post to pay the salaries painting a grim picture of the State finances, he said.

Mr. Jagan, who promised to develop the State Capital, has “killed Amaravati.”  The development works at Amaravati came to a grinding halt.  There would not have been any objections or disputes had the State government continued Amaravati as the Capital and developed Visakhapatnam online of Mumbai, Mr. Krishna Rao said.

In fact, the concept of three capitals itself was a blunder.  It was easy to stoke up regional passions but hard to control. The rulers should take cognisance of it and take necessary steps. The BJP stand was clear:  Andhra Pradesh High Court should be shifted to Kurnool, and Amaravati continued as executive capital, he added.