TDP slams Govt for not forming Fiscal Council
Jagan rule known for fiscal irresponsibility: Yanamala
AP violated FRBM norms, mismanaged budget
AMARAVATI: TDP politburo member Yanamala Ramakrishnudu on Monday demanded the Government to form a State-level ‘Fiscal Council’ so as to check the ongoing budget mismanagement and prevent the financial crisis from going out of control.
Ramakrishnudu said the Review Committee of Fiscal Responsibility and Budget Management (FRBM) has asked all the State Governments to form Fiscal Councils but AP has not complied with it so far. This council would ensure the expenditure of public funds in accordance with the budgetary allocations approved in the State Legislative Assembly.
In a statement here, the Opposition Leader in Council said that AP became the worst example of fiscal irresponsibility and budget mismanagement under the YSRCP rule. The
Chief Minister was not giving any respect to the budget approved in the House. He was spending the State funds as per his whims and fancies with total disregard for the constitutional institutions and established systems.
Ramakrishnudu termed it as unconstitutional that the Government passed the budget in a single day without taking up a discussion. The budget allocations in AP had become total farce with no funds being released towards that. The Fiscal Council would check such violations and diversion of public funds. The developed countries and developing economies around the world have already acknowledged the importance of Fiscal Councils.
The TDP former finance minister deplored that the last 32 months of Jagan rule marked countless transgressions of budget rules. Budget allocations were thrown to winds and funds were indiscriminately diverted. Budget manual was frowned upon. The FRBM guidelines and the basic constitutional norms were buried.
Ramakrishnudu said because of the reckless policies of the YCP rule, the supplementary grants might exceed the original budget allocations in future. The rule for supplementary grants not to exceed 10 percent was violated totally. There was no development as the ruling party corruption scams and misuse of public funds overwhelmed the State economy.
Ramakrishnudu said not even one fourth of capital expenditure was spent in the first six months of the 2020-`21 budget. Less than Rs. 6,711 Cr was spent against the allocated Rs. 31,198 Cr. The expenditure on irrigation and medical and health was nominal. The allocation for irrigation was Rs. 13,237 Cr but just Rs. 1,729 Cr was spent in the first six months. Not even 15 percent was spent on irrigation.
The TDP leader recalled how the AP rulers threw into the dustbin the Centre’s letter asking for spending 64 percent of loans on capital expenditure. AP did not spend even Rs. 19,000 Cr as against Rs. 49,280 Cr to be spent on capital expenditure during 2020-`21 as per the norms. Loans reached 35.6 percent of GSDP and per capita income came down from 15 percent to an alarming 1.03 percent.
Ramakrishnudu said if immediate steps were not taken for checking fiscal indiscipline, the AP State would get stuck in an irretrievable financial crisis. A high level review should be held on the AP Government’s failures and transgressions. The budget rules should be implemented properly.
