Indiscriminate borrowings pushed the State to the verge of bankruptcy: former Chief Secretary I. Y. R. Krishna Rao

Mr. Krishna Rao further said the grants from Central government for 2022-23 were shown to be ₹56,000 crore

Former Chief Secretary and BJP leader I. Y. R. Krishna Rao said one thing that was conspicuous in the Budget presented by Finance Minister Buggana Rajendranath Reddy was the indiscriminate borrowings that pushed the State to the verge of bankruptcy. 

He said in a press release that as per the Comptroller and Auditor General (CAG) report, the revenue deficit for nine months in the FY 2021-22 was ₹45,900 crore whereas it was pegged in the Budget at ₹19,545 crore for the full year (2021-22). Taking the remaining three months, the revenue deficit is supposed to be more than ₹45,900 crore. 

It meant that the government created an ‘artificial revenue deficit’ by showing less expenditure and avoiding bill payments for the three-month period. The consequence would be the beginning of 2022-23 with the carried forward burden of bill payments in addition to expenditure under other heads. 

Mr. Krishna Rao further said the grants from Central government for 2022-23 were shown to be ₹56,000 crore. For the FY 2021-22, the grants amounted to ₹57,930 crore and as per the revised estimate for the same year, the grants stood at ₹43,632 crore, which was a reduction of just over ₹14,000 crore. 

Mr. Krishna Rao said the State government did not respond to a request made by the CAG in March 2021 to furnish information on its debt position. In FY 2021-22, Telangana had off-Budget borrowings of only ₹45,000 crore, but the Andhra Pradesh government’s debt profile was kept under wraps, Mr. Rao added.