Hyderabad: YSRCP has taken strong objection to the financial indiscipline of the coalition government and its decision to allow private players to have access to government funds while going for off-budget borrowings.

Speaking to media here on Thursday, former Finance Minister Buggana Rajendranath Reddy said the government’s decision to pledge all future borrowings of State Mineral Development Corporation (APMDC) and allowing private parties to have direct access to the consolidated fund is highly objectionable and undemocratic.

The amount being raised by the issue of bonds would be used for revenue expenditure which increases the burden on common persons, he said, adding that the issuance of NCD (non-convertible debentures) would further burden the State and its servicing would take a heavy toll.

‘Issuing bonds is normal, but giving permission for private party, which is the custodian of the bonds to directly draw from the RBI, is unprecedented and objectionable and we demand that such coalition partners should take a serious view of this anomaly and question the Chandrababu government,’ the former Minister pointed out.

The amount to be raised through bonds is many times more than the revenue of the APMDC and the amount would be going into miscellaneous account and for revenue expenditure and for a government that boasts about wealth creation this is in total contrast, he said.

Rajendranath reminded that when YRCP pledged some properties, the coalition partners had raised a hue and cry and spoke in high decibels about off-budget borrowing, but now the same coalition seeking such financial impropriety is highly condemnable.

When compared to Jagan Mohan Reddy government, the coalition government’s loans have gone up and revenue has come down. The loan taken so far by the Naidu government runs into Rs 1.4 lakh crore and there is no account as to where did this money went.

He alleged that no welfare scheme has been implemented as promised during elections, all sections of people from farmers, to students, to women to employees and traders are disappointed with the government. During our term, the additional VAT collected was used for welfare schemes and we did not misuse Corporation money, he said.

Despite Covid, we have managed finances in a better manner besides fulfilling our agenda of welfare of the poor while the coalition has been trying to benefit the private individuals from the ex-chequer, he said.

The failure to continue welfare schemes and the concept of wealth creation falling flat has exposed the deceit of the coalition government as every section of the society is affected, Rajendranath stated.