Fact Check: Liabilities Grew at 169 Percent In TDP Rule, 55 Percent in YSRCP Rule

Dec 20, 2023, 07:20 IST

Amaravati: Andhra Pradesh government released a liabilities statement on the state's fiscal situation here on Tuesday. In the detailed statement, the YSRCP government has highlighted how the liabilities swelled during the previous Chandrababu Nadidu-led TDP regime.

Vexed by the ‘continuous misinformation propaganda’ by the opposition parties and their friendly media especially Eenadu which painted an alleged concerning picture of financial mismanagement of the state by quoting baseless figures, the Finance Department has released a detailed outstanding liabilities statement to rebut their claims. It has also shared the actual figures from the State government as well as central institutions like CAG, RBI etc.

In its report, the Finance Department has said the outstanding liabilities of the undivided State of Andhra Pradesh on 31st March 2014 was Rs. 1,96,202.40 cores. As 58 percent of the liabilities were devolved to the successor state of Andhra Pradesh, the liabilities of AP stood at Rs 1,18,050 crores when TDP formed government in the state and the liabilities swollen to Rs. 2,71,797.56 crore by the end of TDP’s tenure in May 2019. Thus, the outstanding liabilities increased by 169 percent during the 5 year period, it added.

Comparative Analysis:

TDP Rule (2014-2019)

* Outstanding liabilities increased by 169%

* Compounded Annual Growth Rate (CAGR) of liabilities: 21.87%

YSRCP Rule (2019-2023)

* Outstanding liabilities decreased from a whopping 169% to 55% in just 4 years ( 2019 June - March 2023)

* Compounded Annual Growth Rate (CAGR) of liabilities annually: 12.07%

When all forms of debt taken are aggregated regardless of whether they are being serviced by the State Government or not, increase of liabilities as a percent to GSDP during the 5 year period 2014-19 is as high as 7.45 percent and comparatively during the period 2019-23, the figure is only 5.21 percent and needless to say the state was hit by massive waves of Covid-19 pandemic and associated economic meltdown. The Finance Department has shown the comparison of actual debt vs the debt as ‘conveyed by Eenadu’ paper item wise.

Meanwhile, Duvvuri Krishna, Special Secretary (Finance and Economic Affairs) to Chief Minister told media persons that there’s a difference between a borrowing from an RBI and a marwari financier.

“State finance is not a joke! No state can borrow without the consent of RBI and the Central government. Obviously a proper thorough procedure is followed. RBI only allows the borrowings when they are sure as to when and how a state will repay. It’s a serious matter. It’s not like borrowing from a Marwari financier!” Duvvuri Krishna said.

These revelations come as a blow to the TDP's narrative of economic growth under their leadership. The Finance Department has requested the opposition affiliated media to exercise restraint and not publish articles without doing a fact check as misinformation can badly affect the overall development of an economy and welfare of the state.