AP Credit Rating Touching a New Low alleged Yanamala Ramakrishnudu
TDP senior leader Yanamala Ramakrishnudu alleged that in just one year of its governance, the YSRCP government took such massive loans that were equal to the total loans procured by the previous governments over a period of 30 years
Amaravati: TDP senior leader Yanamala Ramakrishnudu alleged that in just one year of its governance, the YSRCP government took such massive loans that were equal to the total loans procured by the previous governments over a period of 30 years.
Ramakrishnudu, in a press release on Sunday deplored that the credit rating of Andhra Pradesh has now touched a new low even as its interest and principal loan payments are expected to touch Rs. 1 lakh Cr in the next four years. The State's financial crisis was fast becoming unmanageable because of the failed policies of the ruling party.
He said AP has already reached 4th place in the country in giving highest guarantees for loan repayments while, at the same time, the State has climbed to 6th place in taking the largest loans. In his first 14 months rule itself, Chief Minister YS Jagan Mohan Reddy became popular as a reverse growth CM and created a record thanks to cancellation of PPEs and reverse tendering.
Ramakrishnudu expressed alarm that at the current rate of taking loans, the interest and principal repayments would touch Rs. 50,000 Cr per year. By the time the YSRCP 5-year-rule ends, these repayments would reach about Rs. 1 lakh Cr per year. The Credit Rating was badly hit because of the heavy dependence of the State on loans. In future, nobody would come forward to lend loans to AP. The State would fall into total bankruptcy due to total lack of development as well as welfare.
The TDP leader said that the average loans taken by successive governments since 1956 till 2020 came to Rs. 5,000 Cr per year while the Jagan regime got dubious distinction of procuring Rs. 70,000 Cr in just one year, during 2019-20. Along with loans taken by YSRCP government, the total outstanding loans of AP now stood at Rs. 3,04,500 Cr. Going by the current trend, a total of Rs. 3.5 lakh Cr loans would be brought in YSRCP's five-year rule at the rate of Rs. 70,000 Cr per year, Ramakrishnudu predicted.