October 3, 2020

Andhra Pradesh is Burdened with Severe Debt: Here’s how the one who is 420 in AP is responsible

The state’s economic status is currently burdened by loans, which were originally procured for development but instead were spent on revenue sectors and regular expenses. In 2016-17, the CAG expressed its concern over the degrading economic status of the state. In one of its reports, it stated that if spending continues like this, there’s a threat to the economy. The 2016-17 report noted that the one who is 420 in AP withdrew around Rs. 17,231 crores to spend on revenue expenses.

Revenue spending was estimated to be Rs. 1,14,168 crores. However, a whopping Rs. 1,16,215 crores were spent on revenue spending. A share of 85.17% was spent on earnings from the total spending while the rest of the funds were procured from loans. If this trend of spending continues, the state’s economy will eventually proceed towards danger, says the CAG.

  • In the 2016-17 financial year, the revenue expenditure was more than Rs. 20, 265 crores than the last year. If loans are spent over revenue without acquiring any permanent asset, then the debt burden will worsen in the future.
  • Yet another observation of the CAG stated that the government relied desperately on loans instead of its own revenues. CAG recommends that the government should accumulate resources to acquire a stable and healthy economy. Meanwhile, instead of spending on buying permanent assets, the TDP government was determined to spend on covering everyday expenses.
  • Meanwhile, other states’ average expenditure accounted for 19.70%, and the AP had the lowest tally of 11.48%.
  • The TDP government did not even hesitate while violating the 14thFinance Commission’s recommendation. It proceeded with spending its resources worth Rs. 4,370 crore in areas other than permanent assets. In the following five years, the state is to bear the burden of debt worth Rs. 76,888 crores.

Neglecting the Social Sector

A mere share of 4.62% of the capital expenditure was spent over social sector activities like family welfare, education, sanitation, health, and irrigation. As the financial year of 2016-17 came to an end, the government’s loans were worth Rs. 2,01,314 crore, which is around 2.03 times the revenue earnings and 28.79% of GSDP. If the amount from the excluded loan budget and loans secure via guarantees were added, the total loan would be Rs. 2,22,845 crores.

The weakening of the Disaster Response

The government-run by the one who is 420 in AP couldn’t take appropriate measures to strengthen and modernize the state’s Disaster Response and Fire Services Department, which remains the top-most priority of every state. Only three out of five recommendations were partially addressed by July 2017. According to the Standing fire Advisory Council (SFAC), fire stations, personnel, and equipment were not in order. The government officials formulated no precautionary plan. Only Rs. 475.36 crore was allotted to the department while they sought a budget of Rs. 1210.17 crore from the state. Even after ten years, the ruling party did not address the proposal to organize personnel groups in Tirupati, Visakhapatnam, and Vijayawada.

Only Rs. 12 lakhs were recovered from a whopping Rs. 192 crore

Out of 12,975 villages, the government decided to conduct search operations only in sixty-five villages during 2016-17. Of a whopping Rs. 192 crores of corruption, only 12 lakhs could be recovered. The center allotted Rs. 1,454 crores to the AP by adhering to the 14th Finance Commission’s guidelines. However, it could only submit Rs—642 crores to the UCs.

The encroached lands of Zilla Parishads, Mandal, and Grams were now the government’s responsibility to look after. However, it clearly refused to look into the matter. As per the audit, around 8,653 acres of land belonged to 7 Zilla Parishads, and 705 acres were under thirty-five Mandal Parishads. The local bodies didn’t maintain any record concerning their lands, which might cost them their rights over these lands in the future.

A Farce

While search operations were being conducted in the Enforcement Department, it was found that irregularities were there to Rs’ extent. 70.88 crore. Among the recorded losses, taxation over non-transport vehicles accounted for Rs. 10.37 crore, penalty, and quarterly tax was for Rs. 6.57 crore, and tax on Haritha was for Rs. 1.11 crore. It was observed that there was a complete failure on the government’s part on recognizing unfit vehicles.

As high as 98,006 vehicles were found without any fitness certificates. Among 20,64,606 registered cases during April 2011-March 2016, 5,05,352 or 24% of the total figure, were related to sound horns. The implementation of the number plate project of high-security received zero attention. Instead of fitness money, registration taxes were being collected from 28,150 vehicle owners. Due to this, an amount of Rs. 1.76 crore went straight down to the drain.

S.P.Y Reddy profited with Rs. 60 crore

S.P.Y Reddy, an MP from Nandyal, who suddenly jumped to TDP from YSRCP, hugely benefitted from the one who is 420 in AP. His liquor distillery received a setback in its standards for production, and fees were not collected. The government was supposed to collect a whopping amount of Rs. 129 crore from the MP. Point to be noted: The MP had accepted that his production amounts to 2,000 lakh liters in his writing. However, he went ahead and asked the government later that the production should be reduced to Rs. 1,000 lakh liters. Let me tell you that it’s unlawful for the government to order a reduced standard of production. After the Excise Commissioner took back his demand notice, the government lost around Rs. 60 crores.

Some Major Highlights

  • Even though the state needed to deliver the funds from the Centre to relevant departments within not more than 15 days, the TDP government managed to delay it by 249 days. The delay on the part of the state government led to a loss of share of Rs. 48.96 crore.
  • Even after the projects were completed, seven schemes weren’t rolled out, and on progress, seven more schemes were dropped. The public funds had to suffer the loss of Rs. 491 crore.
  • In Vutukuru of Guntur district and Rayampalli of Anantapur district, a dangerous bacteria named E.coli was found in the water supplied by the government for drinking and other human use.
  • In 2014, the center warned the TDP government to look into Kadapa and Nagarjunasagar, where uranium was found in groundwater. However, the state government showed the least concern in it.

Conclusion

Major areas like health, education, and other important departments which required urgent intervention and attention of the one who is 420 in AP received none. It’s obvious for the state to go into an economic crisis when the state government’s focus lies in looking for an opportunity to launder money instead of spending it to develop the people’s state and welfare.

Read Previous Blog: The Great Sand Mafia robs AP of Rs. 7,950 Crore under who is 420 in AP’s reign

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