Hyderabad (Telangana) [India], April 24 (ANI): Former Finance Minister and YSR Congress Party (YSRCP) leader Buggana Rajendranath Reddy alleged that the present Telugu Desam Party (TDP)-led coalition government in Andhra Pradesh by issuing Non-Convertible Debentures (NCD) they were giving direct debit mechanism access to service the bonds which is extremely harmful to the interests of the state.
Addressing the media on Thursday, former Finance Minister Buggana Rajendranath Reddy stated that the TDP government’s decision to pledge all future borrowings of the Andhra Pradesh Mineral Development Corporation (APMDC) and to grant private entities direct access to the consolidated fund is highly objectionable and undemocratic.
Rajendranath Reddy said, “By issuing NCDs, that is bonds, and unfortunately amongst the various guarantees that they’ve given, they’re giving direct debit mechanism access to service the bonds which we feel is extremely harmful to the interests of the state because the minute you give direct debit mechanism access, the custodians of the bonds, they have the facility to directly debit from the consolidated fund of the state that is with the RBI. Therefore, we are bringing it into the public domain so that the government can notice this and stop whatever they’re doing presently.”
He pointed out that the funds being raised through the issuance of bonds are intended for revenue expenditure, which would ultimately increase the financial burden on the common people. He further added that the issuance of Non-Convertible Debentures (NCDs) would add to the state’s debt and servicing them would impose a significant strain on the state’s finances.
“While issuing bonds is a common practice, granting a private party–custodian of the bonds–permission to draw funds directly from the Reserve Bank of India (RBI) is unprecedented and highly objectionable. We demand that coalition partners take serious note of this anomaly and question the Chandrababu Naidu-led government,” he stated.
He emphasised that the amount proposed to be raised through these bonds is several times more than APMDC’s revenue, and the funds would be diverted to miscellaneous accounts and revenue expenditure. “For a government that claims to focus on wealth creation, this move is in complete contradiction,” he remarked.
Buggana recalled that when the previous YSRCP government had pledged certain properties, the current coalition partners had raised an outcry over off-budget borrowings. “Now, the same parties are justifying this financial impropriety, which is highly condemnable,” he said.
He alleged that under the coalition government, debt levels have increased while revenues have declined.
“The Chandrababu Naidu government has already borrowed Rs 1.40 lakh crore, but there is no transparency on how or where this money has been spent. No major welfare schemes promised during the elections have been implemented. Farmers, students, women, employees, and traders–all sections of society–are disappointed,” he said.
He concluded by stating, “Despite facing the challenges of the COVID-19 pandemic, our government managed state finances more efficiently and prioritised welfare for the poor. In contrast, the current coalition appears to be using public funds to benefit private individuals. The failure to sustain welfare schemes and the collapse of the wealth creation narrative have exposed the deceit of the coalition government, as every section of society continues to suffer.” (ANI)