Botcha Satyanarayana Claims AP Understated Borrowings By Rs 20,500 Cr

(MENAFN- AsiaNet News)

Botcha Satyanarayana, Leader of the Opposition in the Andhra Pradesh Legislative Council (MLC) and YSR Congress Party (YSRCP) leader, on Wednesday wrote to Governor S. Abdul Nazeer claiming that the State Finance Department presented incorrect and incomplete information on government borrowings for 2024-25 and 2025-26 in the Council. In his letter, Botcha said the reply given by the Principal Finance Secretary to a starred question in the February 2026 Assembly session understated the actual borrowings and omitted key components. He requested the Governor to intervene and impress upon the government the need to provide accurate and complete data to the legislature.

Discrepancy in Borrowing Figures

"The Finance Department stated that total borrowings for 2024-25 were Rs. 60,485 crore. However, the CAG audited Finance Accounts clearly show that the actual net liabilities are about Rs. 81,082 crore. This leaves a gap of more than Rs. 20,500 crore, which is not justifiable," he said.

Omitted Financial Components

Explaining the discrepancy, Botcha pointed out that three major components were possibly excluded. "Borrowings under Ways and Means Advances from RBI were not included, even though they are classified as internal debt in official records. Net liabilities under Public Account, such as deposits and reserve funds, were also ignored, despite their being used to bridge the fiscal deficit. Adjustments related to GST compensation loans were reduced without valid justification," he said.

He added that when the fiscal deficit itself is over Rs. 81,000 crore, presenting a much lower borrowing figure gives a misleading picture of the State's finances. "Such omissions create a false impression that the government's debt burden is lower than it actually is," he said.

Allegations of Off-Budget Borrowings

Raising another issue, Botcha said the government's claim that there were no off-budget borrowings in 2025-26 is incorrect. "Government-backed corporations like MARKFED and Civil Supplies Corporation have been allowed to raise loans with state guarantees. These entities depend entirely on government support, and such borrowings clearly fall under off-budget liabilities as per Government of India guidelines," he said.

Inconsistent Reporting Approach Highlighted

He also highlighted the inconsistency in the Finance Department's approach. "When details were sought for borrowings from 2014 - 2024, both Public Debt and Public Account were included. But for 2024-25 and 2025 - 26, the Public Account was excluded. This change in approach raises serious concerns," he said.

Call for Transparency and Accountability

Botcha stressed that providing incorrect or incomplete information to the Legislature undermines accountability. "Officials are expected to present facts transparently. Any deviation from this principle affects the credibility of the Finance Department and weakens public trust," he said.

He requested the Governor to intervene and ensure corrective action, "The reply should be withdrawn and replaced with accurate figures that are consistent with CAG audited accounts. Responsibility must also be fixed for the discrepancies," he said.

He said, "The Legislature represents the people, and any misleading information placed before it amounts to misleading the public. It is essential that transparency and integrity are upheld in matters of public finance." (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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