AP's financial position strong, says YSRCP Govt

Vijayawada/Visakhapatnam: The YSRCP Government on Thursday stated that its financial position was better due to fiscal discipline observed while spending on various projects.

In a detailed clarification, the government said in a statement that owing to fiscal discipline, the Government's debt to GDP has come down in the subsequent year. Even with respect to the State of AP, the debt situation in FY22 is quite encouraging. The provisional figures released by the CAG convey that for the financial year 2021-22, the State Government has managed the finances in the most fiscally prudent fashion with the revenue deficit being limited to Rs 8,370.51 crore and fiscal deficit to Rs 25,194.62 crore.

The statement said "this translates to a fiscal deficit to GSDP ratio of less than 2.10 per cent. In the light of the fact that the 15th Finance Commission has recommended a fiscal deficit to GSDP ratio of 4.5 per cent for the financial year 2021- 22, the performance of the State can be regarded as being extremely prudent."

As can be seen, during every year of the TDP period, the deficit to GSDP exceeded the then prevailing limit of 3 per cent. The deficit to GSDP ratio recorded this time is the lowest during the last eight years. Despite this admirable performance by the State Government, through a misinformation campaign, attempts are being made to create widespread concern amongst the RBI, Central Government, banks & financial institutions, Parliament and public.

The government feels that this is essentially to tarnish the image of the State and thereby cripple the State financially to reap political gains. Till recently, the TDP people and their affiliated media have been referring to the data from CAG and have been constantly blaming the State Government for borrowing, even when such borrowing is within the limit stipulated by the Ministry of Finance, Government of India. Now, when the data provided by the CAG is so encouraging, the TDP affiliated media is trying to make allegations against the integrity of the AG and CAG as well, the government alleged.

The statement said the misgovernance and expenditure profligacy of the TDP Government has resulted in the undue swelling of the liabilities of the State of AP. At the time of bifurcation, the debt of combined State assigned to government of successor State of AP was Rs 97,123 crore and when public account share is also added to the same, the figure was Rs 1,20,556 crore, the same has, over the five years, increased to Rs 2,68,225 crore.

The provisional figures released by the CAG convey that for the financial year 2021-22, the AP Government has managed the finances in the most fiscally prudent fashion with the revenue deficit being limited to Rs 8,370.51 crore and fiscal deficit to Rs 25,194.62 crore

- AP Government in a statement