AP will not become like Sri Lanka as debt is lower than Centre: YSRCP

YSR Congress Party general secretary V Vijay Sai Reddy on Thursday said Andhra Pradesh will not become like Sri Lanka as its debt is much lower than the Centre and within the permissible limit.

Andhra Pradesh's public debt was at 32.4 per cent of the state gross domestic product (SGDP) at the end of 2021-22, lower than the Centre's debt at 57 per cent of the GDP during the same period, he said.

Andhra Pradesh was in the fifth position in terms of debt to SGDP ratio after Punjab (47 per cent), Rajasthan (39.8 per cent), West Bengal (38.8 per cent) and Kerala (38.3 per cent) in the same period, he added.

 

Briefing media in the presence of a delegation of YSRCP MPs, Reddy said: Andhra Pradesh's public debt stood at Rs 3,75,751 crore at the end of March 2022, while the central government's borrowing was at 135.88 lakh crore in the same period".

"So, the allegations of Telugu Desam Party (TDP) chief Chandrababu Naidu on state financial condition is totally unfounded and untenable," he noted.

Reddy also mentioned that the state's fiscal deficit to SGDP ratio is less than 2.10 per cent, which is within the limit of 4.5 per cent recommended by the 15th Finance Commission.

Andhra Pradesh's fiscal deficit is lower than the Centre's 6.9 per cent at the end of 2021-22 fiscal, he said, adding that this shows the state's financial condition is in a better situation.

He further said the exports from Andhra Pradesh rose over Rs 2 lakh crore during 2021, while remittances to USD 4.35 billion in the last fiscal.

TDP Chief and former chief minister's allegations are "baseless," YSRCP general secretary said, adding that "Andhra Pradesh will not become like Sri Lanka but Chandrababu Naidu and his ex-minister son are the next Rajpakshas and will have to seek refuge in another country...."

Public debt during the TDP regime in 2014-19 has grown 117.42 per cent, which is almost double of the Centre at 60 per cent in the same period, he said.

Attacking the BJP-ruled Centre for reducing Andhra Pradesh's share in gross tax revenue, Reddy said it is coming down year-on-year from 1.50 per cent in 2015-16 to 1.32 per cent in 2021-22.

The Centre is not giving the state's 41 per cent of the gross tax revenue as recommended by the 15th Finance Commission. The maximum it has given is 36 per cent in 2018-19 and 2020-21, it has just given 29.35 per cent, he said.

"Therefore in the past 7 years, Rs 11.26 crore have not been given to the states by the Central government," he noted.

Reddy also said the Centre is raising surcharge and cess above tax every year but that revenue is not shared with the states.

"Had the Centre given that share, Rs 45,000 to Rs 50,000 crore could have come to Andhra Pradesh. This is injustice being done to the state," he added.