AP CM defends debt, Cong points to insolvency

The Congress has accused TDP government of pushing the state into bankruptcy due to over-dependence on external borrowings, while chief minister N Chandrababu Naidu challenged the opposition to suggest better means to finance developmental projects.

While Naidu claimed that AP had received highest amount of grants from external agencies due to its prudent fiscal management while loans were obtained at lowest possible interest rates, the Congress legislature party leader, YS Rajasekhar Reddy, alleged that the state's financial situation had deteriorated during last eight years.

"Out of Rs 17,820 crore mobilised externally in last eight years, central assistance was Rs 15,363 crore and the grant was Rs 6,752 crore. Due to proper utilisation of funds on welfare and developmental sectors, AP received liberal grants," Naidu said, while presenting a 'progress report' on development and financial resources sector through an interactive programme telecast live by five regional television channels.

The CLP leader, however, came out with a parallel report highlighting fiscal mismanagement of TDP government, the declining GSDP growth rate and asset-liability ratio.

"After inheriting a very solvent government (from previous regimes) with a positive asset-liability ratio, Naidu is now guilty of pushing the state in to bankruptcy," Reddy alleged.