K. Atchannaidu writes to ECI seeking curbs on spending of ₹4,000 crore by ‘outgoing YSRCP govt.’

TDP State president demands ECI to stop Andhra Pradesh government from spending ₹4,000 crore borrowed until after June 4.

TDP State president and former Minister K. Atchannaidu on Monday wrote to the Election Commission of India (ECI) demanding that the Andhra Pradesh government be directed not to spend ₹4,000 crore mobilised by it through auction of bonds, until a change of guard happens after June 4, stating that it would be an act of impropriety to make any payment out of the borrowings on a day when general election results are scheduled to be declared.

Mr. Atchannaidu said the State government had been abusing power right from the very first day of its term, and added that the State’s finances spiralled out of control due to its reckless borrowings and favouritism in making payments to contractors.

He insisted that the ECI should curb the spending for the sake of constitutional propriety and keeping in view the precarious condition of the State exchequer. He alleged that the government had raised loans in blatant violation of established norms and procedures.

“The government has already exhausted the Fiscal Responsibility & Budget Management (FRBM) limit fixed by the Government of India (for A.P.) by June 1 itself and made most of the borrowings after the Model Code of Conduct came into effect. The highly objectionable thing was using those borrowings to make payments to its own firms and benami contractors,” he said.

Mr. Atchannaidu further said that the government was poised to make payments out of the said loan of ₹4,000 crore (which has just been raised) in violation of the first-in-first-out rule in the CFMS system.