Blind borrowing pushed the state to the brink of bankruptcy: Former IYR Chief Secretary Krishna Rao

0

Mr. Krishna Rao further stated that central government grants for 2022-2023 amount to ₹56,000 crore

Mr. Krishna Rao further stated that central government grants for 2022-2023 amount to ₹56,000 crore

Former Chief Secretary and BJP IYR leader Krishna Rao said one thing that stood out in the budget presented by Finance Minister Buggana Rajendranath Reddy was the indiscriminate borrowing that pushed the state to the brink of bankruptcy.

He said in a press statement that according to the report of the Comptroller and Auditor General (CAG), the revenue shortfall for nine months in the financial year 2021-22 was ₹45,900 crore while it was fixed in budget at ₹19,545 crore for the full year. (2021-22). Taking the remaining three months, the revenue shortfall is believed to be over ₹45,900 crore.

This meant that the government had created an “artificial revenue shortfall” by posting less spending and avoiding payment of bills for the three-month period. The consequence would be the start of 2022-23 with the deferral of the burden of bill payments in addition to spending under other headings.

Mr. Krishna Rao further stated that the central government grants for 2022-2023 amount to ₹56,000 crore. For the financial year 2021-2022, the grants amounted to ₹57,930 crore and according to the revised estimate for the same year, the grants amounted to ₹43,632 crore, a reduction of just over 14 ₹000 crore.

Mr Krishna Rao said the state government failed to respond to a request made by the CAG in March 2021 to provide information on its debt position. In the 2021-22 financial year, Telangana had off-budget borrowings of just ₹45,000 crore, but the Andhra Pradesh government’s debt profile was kept secret, Rao added.

Share.

About Author

Comments are closed.