AP Govt Within Borrowing Limits Fixed by Centre, Says CM YS Jagan

AMARAVATI:  Andhra Pradesh Chief Minister YS Jagan Mohan Reddy called out the Opposition Telugu Desam Party's (TDP) smear campaigns about the State economy and against the AP government in an exclusive interview published in the Deccan Chronicle on Friday 

It is known that the state has taken big strides which were evident in the 11.43 percent GSDP growth in the Financial Year 2022. This was the highest growth rate among all major states and in the past three years, AP exports have increased growing 9.3 percent annually. The YSRCP  government has also undertaken several reform initiatives to strengthen governance, business environment, policy stability, and competitiveness, enhance transparency, to boost the investment climate.

AP government is well within borrowing limits fixed by the Centre

Dismissing the allegations of excess borrowings and reckless spending by the TDP’s allied Yellow Media houses the Chief Minister stated that his government was always well within borrowing limits fixed by the Centre.

Elaborating the same with statistical data, the Chief Minister stated that the Direct Benefit Transfer (DBT)  amounting to nearly two lakh crore rupees given to people under various welfare schemes,  not only helped them survive but also contribute to the economy. Welfare schemes like YSR Aasara, Jagananna Chedodu, and YSR Cheyutha were launched to assist people from weaker socio-economic backgrounds by providing financial benefits so that they could establish their businesses and stand on their own feet and in turn, contribute to the State economy.

YS Jagan pointed out that the borrowings resorted to by the TDP  government were much higher than the YSRCP government’s at a time when the economy had nosedived due to the global pandemic.

Also Read: AP Tops In Gross State Domestic Product (GSDP) For FY 2021-22 Despite COVID Crisis

 The compounded annual growth rate of state debt during 2014-19 was 19.02 percent against 13.55 percent between 2019-23, he explained.

When compared with the Centre, the state’s debt grew at 19.02 percent CAGR during 2014-19 while that of the Centre was just 9.89 percent.

On the contrary, the state’s debt grew at 13.55 percent between 2019-23 during which period the Centre’s debt growth stood at 13.85 percent.

AP’s debt grew at a very fast pace when there was no significant economic stress during the Chandrababu Naidu’s regime. However, it grew at a slower pace in YS Jagan Mohan Reddy’s regime when the debt burden increased across economies.

Net borrowing ceiling fixed by the Centre

State financial adviser D. Krishna said the TDP government had resorted to borrowing of Rs 48,128 Crore in excess of the ceiling in the first five years post-bifurcation, while the YS Jagan Mohan Reddy government borrowed Rs 2,696 crore less than the permitted ceiling.

Contributing to the national income

With the constructive economic policies of the YSRCP government, the average contribution to national income which was 4.45 percent during the TDP regime, had risen to 5 percent now.

Even during the Covid-19 lockdown, the state government has taken strict economic measures to ensure that the agricultural and industrial sectors are not hindered at any point despite the uncertainties. AP also achieved double-digit growth of 12.78 percent in the industrial sector in 2021-22, mainly due to measures taken to ensure the continuation of MSME activities. (Inputs from Deccan Chronicle)

Also Read: Set Shops in Andhra and Do Business with Ease: CM YS Jagan to Investors at Delhi Meet