*Arbitrary violation of FRBM regulations
*Juggling the Word of Guarantees
*Illegitimate on Corporation Loans
* Injustice in spending Capital Expenditure.
— BJP Political Feedback Pramukh’s Lanka Dinkar
The Union Finance Ministry had asked to adjust for reduce the debt to Rs 18,000 crore in the financial year 2021-22 financial , which would exceed the limit for the financial year 2020-21 as against to FRBM lits. Whether the State Government of Andhra Pradesh had requested for that amount to be accepted for adjustment in the next 3 years instead of adjust in the year 2021-22 alone? Even in the current financial year 2021-22, according to the monthly accounts on the CAG website, the budget estimates the debt at Rs 37,029.79 crore for the whole year, but as on 31 January 2022, which has reached Rs 58669.79 crore. It is a well-known fact that the state finance minister who is supposed to be in the state is roaming around for debts there like a minister in Delhi.
Corporates’ debts in the state are raising by violation of the basic principles of financial management practices and systems. It is not any wrong to give guarantees for debts as per the rules, but according to What terms was the tax revenue on liquor sales to be shown in the budget had transferred to APSDC to borrowed Rs 25,000 crore through GOs 90 and 91 had specifically issued? and Who would have believed that the guarantee agreement would not have come into force as per the argument of Special Secretay to CM when the Corporations already raised loans with the government guarantee and not showing it in the 2021-22 budget. State Civil Supply Corporation loans exceeded Rs 31,000 crore, were those loans made without government guarantee? .
In the meantime, if we ask for details of loans of various corporations under the RTI, we are left to take details from those concerned corporations from the Srate Finance Department that the information is not with the government as per their information and the information given by the Special Secretary, Whether guarantees given by the government have been utilized by the corporations or not. When the government gives a guarantee, the government has to put in the budget note of accounts whither the guarantee that the amount has been utilized by the corporations or not. It is absurd to say that the guarantee should be shown only when used, that someone with a minimum of knowledge would say that a guarantee is given as an opportunity to avail loans.
If the government gives a GO for guarantees, what does it mean to look at it from a legal point of view when it has been ratified by the Cabinet? According to legal principles, a government allowing any guarantee, that must be in a due process and it must be duly compiled, and the completion of this process on gurantee means that as soon as the responsibility of the state government begins, there is an obligation to look at all those guarantees in the notes on account.
In contradiction of Special Secretary to CM commented that CAG approved accounts haven’t available, let put aside the CAG calculations for some time, does the government have the actual accounts maintained by the government itself? The fact is that if the accounts are finalized by the government, the CAG will review and report on them. Hence, Government can’t escape by it’s answer that accounts are available after CAG verification.
Despite repeated warnings from the Union Finance Ministry that the corporation was overstepping its bounds and violating the rules, the state government repeatedly made the mistake of raising loans through APSDC, which has no own revenue and no assets, State Government misguided approach came out only when they said they were making loans as compared to the NHAI, it has with billions of crores of own revenue and millions of cash generating assets.
The fact that the Chief Minister in his letter sought the recommendation of the Prime Minister to release the APSDC loan through SBI, But Prime Minister’s Office said that making such recommendations is not possible in the governance. The central government will approve the regulations if there is appropriate financial management, but it will not accept to maintain the Finance of the State like a private limited company.
If the state government finds it difficult to answer on capital expenditure, the state government will take out the incompetence by examining the details as follows.
Andhra Pradesh’s Capital Expenditure – Propaganda vs Fact:
When there is a pandemic and when there is an economic slowdown, the government raises the Capital Expenditure and creates assets that provide future income to the state by providing employment to the people with the available funds, but the CM’s special secretary says the Reverse concept in this aspect and he is trying to compare with other states without proper study, Jaganmohan Reddy is the CM for the AP only, so he can not escape comparing the rest of the states with his lies.
According to the budget for the financial year 2019-2020, Capital Expenditure was Rs 32,293 crore and loans, advances were Rs 1,789 crore and total was Rs 34,082 crore as per estimation and as per the budget for the financial year 2020-21, Capital Expenditure a d capital loans and advances together amounting to Rs 29,907.62 crore.
According to CAG approved accounts, Actual Capital Expenditure incurred for the year 2019-20 was Rs. 12,242 Crores for asset creation and Loans, Advance for Rs. 5,356 Crores, total Rs. 17,598 Crores and for the financial year 2020-21 Capital Expenditure for Asset creation & Loans, Advance total for Rs. 18,975 Crores.
If we make Analysis, when the State Government say that Capital Expenditure on asset creation is a priority of their government, Can they say why the state government has not achieved the 45% and 75% capital expenditure target as per the central government norms to achieve for additional incentive debt in the second and third quarters of the current financial year 2021-22?
Can You estimate in true spirit about the Capital expenditure in the Budgeted or Actually incurred for at least 2019-20 & 2021 financial years? This is a sign of an attempt to divert the people from the situation where the state government, which has achieved only 45% to 55% of the Capital Expenditure estimates including advances and loans, has to be deposed. Isn’t it true that the CAG has found that Rs 4,779 crore was miscalculated out of the Actual Capital Expenditure of Rs 12,242 crore, as per the figures given by the state government in the Financial Year 2019-20?
The Estimated Capital Expenditure for the current financial year 2021-22 was Rs 31,198 crore, while the actual expenditure by the end the month of January 2022 was for Rs 12,072 Crores only. At the present moment the state government is squatting on the issue of achieving additional incentives through Capital Expenditure target as fixed by the Union Finance Minister.
At least, at present let the facts be known to the people rather than spreading untruths to away from the truth by the State Government of Andhra Pradesh under the leadership of YS Jagan Mohan Reddy.
