YSRC govt caused debts of Rs 9.74 lakh crore to AP, says minister

Vijayawada: The YSRC government “resorted to large-scale borrowings totalling over Rs 9.74 lakh crore and spent Rs 600 crore without getting approval from the state legislature during its 2019-24 term.”

This was stated by finance minister Payyavula Keshav in the legislative council on Wednesday.

Replying to a question from D. Rama Rao, the minister said the previous government had set up the AP Beverages Corporation and the AP Development Corporation and diverted some funds from these “in violation of all norms” instead of depositing them in the state exchequer.

“When I brought the issue to the notice of Union finance minister Nirmala Sitharaman, she ordered changes to certain rules to avoid such diversion of funds in future. “Such a diversion of funds was done by the YSRC government even without the approval of the cabinet.”

He said that the previous government created a third corporation by name the AP Financial Services Corporation and diverted even the deposits of civil disputes in court cases. The YSRC government had escrowed the future revenues too, he said.

At this juncture, the Opposition YSRC members started to express their protest and trooped into the well. Chairman Koyye Moshen Raju tried to restore order by requesting the members to calm down.

The leader of Opposition, Botsa Satyanarayana, called for the setting up of a committee to ascertain the quantum of debts raised and allegations of diversion of the funds by the YSRC government.