War of words erupts between YCP, TDP over capital expenditure

Vijayawada The YSRCP Government, while accusing the TDP for fiscal management during its stint from 2014 to 2019, has said that despite the fallout of the pandemic, the capital expenditure increased significantly during the first four years after the general elections. The average capital expenditure during the five-year TDP Government was Rs 15,277.80 crore. However, during the four-year YSRCP Government, the average capital expenditure, even if provisional estimate for FY 2022-23 was taken into consideration, is Rs 16,095.90 crore. “This was despite extremely trying circumstances owing to the outbreak of the Covid-19 pandemic that adversely impacted economies across the globe for more than two financial years. The capital formation in an economy is measured by the Gross Fixed Capital Formation, which is a part of the GDP estimation. A declining trend with respect to it was witnessed with one year witnessing a contraction to the tune of 7.34 per cent. Despite this, the capital expenditure under the present government is not discouraging when compared with the performance of the previous government,” an official release stated.

The figures on the government’s viewpoint were kept in the public domain following a report in a section of the media as the Capex under the YSRCP rule had turned dangerously low threatening the future of the State.

The trading of charges on fiscal situation has deepened with the elections slated to be held nine months later. While TDP accuses the YSRCP Government with fiscal mismanagement, the ruling party very often defends its policies and blames the TDP for handing over empty coffers to the YSRCP when it assumed power in 2019 after winning a landslide mandate.Quoting the provisional estimates released by the CAG for FY 2022-23, the YSRCP Government said it clearly conveyed that the capital expenditure incurred by the State Government for the FY was Rs 7,581.58 crore. This was an estimate released by the CAG and the audited accounts of the State Government for that year will only be available in March, 2024. Last year, when the CAG released provisional estimates for FY 2021-22 conveying that the fiscal deficit of the State Government for that year was only 2.1 per cent of GSDP, historically amongst the lowest the State could ever achieve demonstrating a remarkable recovery from the Covid-led economic distress, the principal Opposition party in the State TDP and its affiliated media, unable to digest this, had alleged that this is only a provisional estimate and should not be taken seriously while evaluating the State Government’s performance, the release said.

It pointed out that in fact, TDP leaders even made disparaging remarks against the integrity of the CAG, alleging that the CAG is only conveying the lies being presented by the State Government.

“Today even this figure of Capex for FY 2022-23 is also only a provisional estimate, however, because they believe it is suiting their interests, the TDP and affiliated media are attaching utmost importance to it,” the release contended.

According to the government, till the time the accounts are finalised, the accounts audited by the CAG and the results placed before the legislature, the actual capital expenditure during that period will not be known.

TDP’s charge

Refuting the government claim, TDP national spokesperson Kommareddy Pattabhiram said during 2014-19 then Chief Minister N Chandrababu Naidu had created assets with maximum allocations to capital expenditure, but during 2019-23 Chief Minister Y S Jagan Mohan Reddy has ‘massively reduced’ the allocation for CAPEX and looted the State only to become the richest Chief Minister of the country.

He alleged that the Capex touching the rock bottom level now is the classic example of Jagan Mohan Reddy’s destructive rule. He told the media at Amaravati that the YSRCP Government which always moves in the reverse direction also moved in the same way in Capex too, taking the State to the first position from bottom, said Pattabhi with a note of sarcasm.

He pointed out that the Bank of Baroda in its report for 2022-23 clearly mentioned how 25 States have spent the CAPEX adding Andhra Pradesh stood in the 25th position by spending a mere 23 per cent, which is really shameful for the people of the State. Between 2014-19, the Chandrababu Naidu-led Government had spent on an average 93 per cent allocated in the budget for CAPEX while the YSRCP Government spent only 44.2 per cent of the budgetary allocations from 2019 to 2023, he stated.