VIJAYAWADA: Payyavula Keshav took charge as the state’s Minister for Finance, Planning, Commerce and Legislative Affairs here on Thursday and signed the file for the first tranche of the 15th Finance Commission funds of Rs 250 crore to various local bodies in Andhra Pradesh.
Keshav took charge at the Secretariat with blessings from Vedic scholars. He made it clear that the state, facing financial strains, would have to depend on loans for more years.
“As per the promise given by Chief Minister Chandrababu Naidu to local bodies during the poll campaign, the government has sanctioned the grant of funds from the 15th Finance Commission for all Gram Panchayats. With these funds, Gram Panchayats would provide better amenities to the public, he explained.
Payyavula Keshav said the previous government had increased the taxes to such an extent that it getting difficult for businesses to function, and the overall economic situation was damaged. “As a result, vehicles are being bought in neighbouring states where the taxes are low and petrol is being pumped there, and RTC also took its diesel from Karnataka.”
He said that, for instance, when someone from AP purchased a high-end (Fortuner) car in the neighbouring states, AP lost Rs 16 lakh in taxes. Because of Jagan Reddy’s way of thinking to raise revenue by increasing taxes, businesses have disappeared from AP, he averred.
“Due to the mismanagement of the previous government, AP must depend on loans for some more years.”
Finance department principal secretary Piyush Kumar, secretaries KVV Satyanarayana, Janaki and Vinay Chand, chief commissioner for state taxes Girija Sankar, finance department special secretary K Adinarayana, treasuries director Mohana Rao, APGLI director Srinivas and others were present.
