The Andhra Pradesh state BJP has called upon the Centre to delve into allegations surrounding liquor sales and the state’s financial integrity.
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Purandeswari, the AP BJP President, has not only urged for a thorough investigation by the Serious Fraud Investigation Office into purported irregularities at the AP State Beverages Corporation but has also petitioned Union Finance Minister Nirmala Sitharaman to order a specialized forensic audit of the state’s financial standing.
In her submission to the Union Minister, Purandeswari highlighted a past response from the Finance ministry, which stated the state’s debt at Rs 4.42 lakh crore from the RBI, without accounting for corporation debts.She noted the state’s default on multiple payments and its admission in the state High Court of its inability to pay for power procurement from IPPS, despite court orders.
Furthermore, Purandeswari underscored the state’s failure to remit payments to suppliers and contractors for four years.She emphasized the absence of provisions for interest payments, despite the government levying 18 percent interest on delayed payments of property taxes, electricity bills, and state GST dues.
Purandeswari pointed out that numerous members of trade bodies had sought their dues, along with interest.She emphasized the need for a mechanism ensuring that all legitimate suppliers are reimbursed with interest within a specified three-month timeframe.
Addressing the fiscal quagmire, the BJP leader noted that the state’s autonomous revenue stood at a modest Rs 90,000 crore.When coupled with the Union government’s tax share of Rs 35,000 crore, the total revenue reached a mere Rs 1,25,000 crore.
However, she observed that as per budget figures, state expenditure amounted to Rs 2,60,000 crore.The shortfall, she asserted, was met through Union grants, RBI borrowings, and corporate loan diversions.
Raising pertinent questions, Purandeswari pondered how the state could continue to borrow an additional Rs 50,000 crore annually on a revenue base of Rs 90,000 crore.She revealed that the current state debt teetered close to Rs 11 lakh crore.
“The annual interest outlay at eight percent is an astounding Rs 88,000 crore.Repayment of the principal would require a minimum of Rs 36,000 crore over 30 years.To service the debt, the state would need at least Rs 1.24 lakh crore annually,” she emphasized.
Purandeswari implored the Union Finance Minister to ensure that all outstanding payments and sovereign guarantees to the state were encompassed within the FRBM limit, underscoring the importance of fiscal prudence and accountability in state affairs.
