‘AP’s debt stands at Rs 4L cr’

Special Secretary to the Chief Minister for Finance and Economic Affairs, Duvvuri Krishna has said that as of 2023, the debt of Andhra Pradesh (AP) stands at Rs 4 lakh crore.
Addressing a press conference on Tuesday, he said that the annual increase in debts during the Jagan Mohan Reddy government was only 15.42%, contrasting with the 20% annual increase observed until 2019.
Krishna asserted that the State government adheres to the norms set by the Reserve Bank of India (RBI) and the Central government, debunking false narratives surrounding AP’s financial health.
According to Krishna, the RBI’s report indicated that the government debt was Rs 1,18,050 crore at the time of State bifurcation in 2014, escalating to Rs 2.71 lakh crore by 2019. By March 2023, AP’s debt had further risen to Rs. 4 lakh crore. He underscored that while the annual debt increase was 20% during the Telugu Desam regime, it has now decreased to 15.42% under the present government. Krishna clarified that attributing all of AP’s loans to the current administration is inaccurate, highlighting adherence to the Fiscal Responsibility and Budget Management (FRBM) norms, with calculations verified by the Comptroller and Auditor General (CAG) and RBI.
Regarding electricity distribution companies (DISCOMS), Krishna noted that their debt was Rs 2,893 crore pre-bifurcation (2014), reaching Rs 21,541 crore during the Telugu Desam regime, and subsequently reducing to Rs 11,602 crore under the Jagan government. The total debts of power companies, which were Rs 32,596.27 crore at the bifurcation, increased to Rs. 91,137 crore during Telugu Desam’s tenure and further rose to Rs 1,09,094 crores in the current government’s four-and-a-half years. Krishna emphasized a 30.74% increase during the previous Telugu Desam government and a 5.79% decrease in the Jagan government.
Krishna questioned the constitutionality of loans and said that loans are granted within Central limits and in compliance with established rules. He pointed out that the debt, which was Rs 1,53,346 crore at the formation of the Telugu Desam government in 2014, escalated to Rs 4,12,288 crore by 2019, with the RBI failing to issue warnings when the debt increased by 7.45% during that period. He questioned the timing of the RBI’s warnings, given that the current debt increase is lower at 5.21%.
Krishna provided insights into the outstanding liabilities of the State government and Public Sector Undertakings (PSUs), indicating that liabilities as of June 2014 were Rs 1,53,346.80 crore, surging to Rs 4,12,288.00 crore by May 2019 during the Telugu Desam government—a rise of Rs 2,58,941.20. Comparatively, liabilities increased to Rs 6,38,212.72 crore by March 2023, marking a Rs 2,25,924.72 crore increase during the four years of the Yuvajana Sramika Rythu Congress Party (YSRCP) government. The liabilities to GSDP ratio during the four-year YSRCP period was reported as 5.21%.