CM Jagan Mohan Reddy asks Center to let Andhra Pradesh borrow more money

Vijayawada: Andhra Pradesh Chief Minister YS Jagan Mohan Reddy called Prime Minister Narendra Modi on Monday and asked him to allow the state to borrow Rs 42,472 crore. He also called on the Prime Minister to ask the Center to release the pending income deficit coverage of Rs 18,830 crore to help the state overcome its financial crisis.

Jagan Mohan Reddy met with the Prime Minister for over an hour in New Delhi and had discussions on several state issues and submitted a performance containing several key and outstanding issues.

The CM told the Prime Minister that the sum of Rs 42,472 crore has been set as the net borrowing ceiling for AP under the Center’s Fiscal Responsibility and Fiscal Management Act for 2021-2022, compared to the revised net borrowing limit of Rs 17,923.24 crore set by the Union Ministry of Finance.

The CM said then Prime Minister Dr Manmohan Singh assured AP that the Center would help them overcome their income gap and close the resource gap from the fork date, as well than to implement the recommendations of the XIVth Finance Committee via the allocation of the 2014-15 Union budget. .

However, the resource deficit estimated from June 2014 to March 31, 2015 by the Controller and Auditor General was Rs 16,078.76 crore. During the following period, the Center, by initiating standardized expenditure, reduced the revenue deficit to 4,117.89 crore rupees.

The CM said the government of the day failed to pay its bills and the arrears of the Salary Review Board in 2014-2015 due to a lack of funds. If outstanding bills and arrears are factored in in 2014-15, AP’s revenue deficit climbed to Rs 22,948.76 crore. The Center had released only Rs 4,117.89 crore so far, said the CM and asked Modi to release the remaining amount of Rs 18,830.87 crore to cover the revenue shortfall.

The CM said AP received the lowest income in the form of fiscal devolution from the Center, which was down 3.38% as economic growth was sluggish in 2019-2020 and the coronavirus pandemic took an impact on the economy in 2020-21. The state had only received Rs 28,242 crore in taxes against Rs 34,833 crore expected.

Jagan Mohan Reddy told the Prime Minister that in addition to the Center’s fiscal shortfall, the state itself has spent Rs 8,000 crore to fight the Covid-19 pandemic. Despite such financial difficulties and an economy shaken by the pandemic, the YSRC government had implemented several social protection programs with commitment in a transparent manner.

The CM requested Modi’s intervention to get the Center to accept the revised cost estimates for the Polavaram irrigation project at Rs 55,657 crore at the 2017-2016 price level, and instruct the Ministry of Finance of the Union to release the amount of pending invoices of Rs 2,100 crore.

Jagan Mohan Reddy called on Modi to instruct the Telangana state government to release the electricity charges to Andhra Pradesh to the tune of Rs 6,284 crore for the supply of electricity from the 2 June 2014 to June 10, 2017, by APGenco.

The CM requested the renewal of the overnight clearance approval for the construction of Bhogapuram International Airport and also assistance in the execution of an integrated steel plant in Kadapa district.

Jagan meets with Nirmala to discuss SCS, others

The CM met with Union Finance Minister Nirmala Sitharaman and discussed several issues including special category status and other issues in New Delhi.

Jagan submitted a representation to Sitharaman requesting his intervention to resolve issues such as accepting revised cost estimates for the Polavaram Irrigation Project, releasing the Center’s income deficit amount, releasing electricity arrears of Telangana and several other issues.

Jagan seeks support for the development of Bhogapuram greenfield airport

Reddy requested the support of Union Minister of Civil Aviation Jyotiraditya Scindia for the development of an entirely new international airport in three years in Bhogapuram, during his visit to New Delhi.

Submitting a representation to the Union Minister, Jagan Mohan Reddy said the Center has assured its support to the state in accordance with the 2014 AP Reorganization Act to develop several sectors, including civil aviation.

The government felt the need for financial support for the airport as well as the necessary permits to develop it. The CM said there was no chance of developing the existing airport at Visakhapatnam due to the presence of Eastern Naval Command.

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