(MENAFN- IANS) Amaravati, July 26 (IANS) Andhra Pradesh faces a gap of over Rs 1.46 lakh crore for expenditure during 2024-25 due to the destruction of the state's Economy in the last five years, Chief Minister N. Chandrababu Naidu said on Friday.
The Chief Minister presented a White Paper on state finances in the Assembly on Friday, blaming the previous YSR congress Party government for the decline in growth rate, misgovernance, mismanagement of financial resources, mounting burden of debts, and reduced capital expenditure from 2019 to 2024.
CM Naidu explained that for the 2024-25 fiscal, the resource gap for essential expenditure is Rs 11,685 crore but if the outstanding dues to vendors, schemes, and employees are taken into account, this gap will be Rs 1,46,909 crore.
The outstanding dues to vendors and schemes are Rs 1,13,244 crore, while the same for employees stand at Rs 21,980 crore, he said.
According to the White Paper, the total receipts for the current financial year are estimated at Rs 2,39,140 crore, while the total essential expenditure is Rs 2,50,825 crore.
The Chief Minister claimed that the state's debts increased from Rs 3.75 lakh crore to Rs 9.74 lakh crore in five years, leading to a potential debt trap.
He also said there was a reduction in revenues for five years due to faulty excise, mining, and sand policies.
“There was loot of natural resources for personal gains at the cost of the public exchequer,” he said.
Stating that lack of capital expenditure and no private investment led to a breakdown of the economy, the Chief Minister said there was destruction of growth opportunities in the form of Amaravati and Polavaram.
He also alleged that the policy of targeting industries, services, and trade, coupled with the neglect of agriculture and aqua sectors resulted in further losses for the state besides destroying people's lives.
Elaborating on the 'mismanagement' in the Polavaram project, CM Naidu said delays led to damages and a cumulative loss of Rs 52,900 crore.
"The previous government abruptly halted all works in state capital Amaravati, devastating the hopes of 29,966 farmers who had voluntarily given 34,400 acres of land. There was a loss of potential wealth amounting to Rs 2 lakh crore during the construction phase,” he said.
CM Naidu also said that while his government had transformed Andhra Pradesh from an energy-deficit state to an energy-surplus state during 2014-19, there was misgovernance in the energy sector during the YSRCP rule.
"The cancellation of power purchase agreements put an additional burden of Rs 12,250 crore. Inefficient governance in the energy sector led to losses of Rs 1.29 lakh crore while tariffs for customers and industry increased," he said.
CM Naidu also alleged that illegal sand mining led to a loss of more than Rs 7,000 crore.
"There was a loss of Rs 9,750 crore in mineral revenue due to looting of mineral wealth. Mangrove forests spread over 101.16 acres were also destructed," he said.
The Chief Minister also accused the Jagan Mohan Reddy-led government of abusing power to harass political opponents and dissenting voices, leading to a decline in public trust and increasing social unrest.
The new government has published seven White Papers for every citizen to understand the real extent of the previous government's mismanagement, he said.
“The journey ahead is challenging due to the messed-up situation left by the previous government. Partnership, transparency, and public awareness are key to moving forward. Discussion and debate are essential for collective understanding and finding short, medium, and long-term solutions for the state's progress,” he said while exuding confidence in taking up this responsibility and delivering on the promises.
The Chief Minister also mentioned that the new government from day one implemented the promises made in the election manifesto.
These included abolishing the Land Titling Act, enhancing social security pensions to Rs 4,000, Mega DSC for filling up 16,347 teacher vacancies, skill census, re-opening the Anna Canteens to provide food to the poor for Rs 5, and resumption of free supply of sand, the Chief Minister said.
He also said the coalition government is committed to implementing 'Super 6' and other promises made in the poll manifesto
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