AP Credit Rating touching a new low

Yanamala Ramakrishnudu

AMARAVATI: Former Finance Minister Yanamala Ramakrishnudu on Sunday alleged that in just one year of its regime, the YSRCP government took such massive loans that were equal to the total loans procured by the previous governments over a period of 30 years. Mr. Ramakrishnudu deplored that the credit rating of Andhra Pradesh has now touched a new low even as its interest and principal loan payments are expected to touch Rs. 1 lakh Cr in the next four years. The State’s financial crisis was fast becoming unmanageable because of the ‘failed’ policies of the ruling party.

The TDP Floor Leader in Council, in a statement here, said AP has already reached 4th place in the country in giving highest guarantees for loan repayments while, at the same time, the State has climbed to 6th place in taking largest loans. In his first 14 months rule itself, YS Jaganmohan Reddy has become popular as a ‘reverse growth CM’ and created a record thanks to cancellation of PPEs and reverse tendering.

Mr. Ramakrishnudu expressed alarm that at the current rate of taking loans, the interest and principal repayments would touch Rs. 50,000 Cr per year. By the time the YSRCP 5-year-rule ends, these repayments would reach about Rs. 1 lakh Cr per year. The Credit Rating was badly hit because of the heavy dependence of the State on loans. In future, nobody would come forward to lend loans to AP. The State would fall into total bankruptcy due to total lack of development as well as welfare.

Yanamala Ramakrishnudu in Assembly

The TDP leader said that the average loans taken by successive governments since 1956 till 2020 came to Rs. 5,000 Cr per year while the Jagan Reddy regime got dubious distinction of procuring Rs. 70,000 Cr in just one year, during 2019-`20. Along with loans taken by YSRCP rule, the total outstanding loans of AP now stood at Rs. 3,04,500 Cr. Going by the current trend, a total of Rs. 3.5 lakh Cr loans would be brought in YSRCP’s five-year rule at the rate of Rs. 70,000 Cr per year.

Accusing the CM of taking all reverse policies, Mr. Ramakrishnudu said selling away the government lands in the name of ‘Build AP Mission’ was another bankrupt policy. Actually, it was a ‘Build YCP Mission’ being used by the ruling party leaders to grab prime lands at cheap rates. This would lead to lack of any government lands for infrastructure and development projects in future. Even the courts were commenting these days asking whether Andhra Pradesh has become bankrupt. The government should take this as a wake-up call.

The former Minister said all the goodwill of AP as a favourite investment destination was lost because of the discredited and chaotic policies of CM Jagan. The Chief Minister has no time for review of any project or programme, which was why nobody was talking about what was happening really. Sand shortage crisis was created because of the ruling party leaders’ greed only. Along with that, the Coronavirus epidemic has dealt another serious blow.

Mr. Ramakrishnudu deplored that not a single project was taken up or completed, nor a single road was laid nor a single bridge was constructed in the past one year. The daily incomes of the people were badly hit because of sand shortage and thoughtless financial policies. At such a juncture, the proposal to take massive loans from foreign private firms was another ruinous and disastrous policy. Jagan Reddy should take responsibility for all the destruction that was going on. He should set aside vendetta and start reconstructing the State.