PAC chief seeks explanation on Centre’s letter

VIJAYAWADA: Public Accounts Committee (PAC) Chairman and TDP MLA Payyavula Keshav has sought explanation from the State government on the objections raised by the Union Finance Ministry, in a letter dated June 30, 2021, against Rs 17,923 crore loans taken by Andhra Pradesh in excess of the ceiling imposed on it. He said the assistant director of the Union Finance Ministry, in the letter to the State government, has given reasons as to why the Centre is rejecting the AP plea for raising the open market borrowing of over Rs 17,810 crore.

In a statement issued on Saturday, the PAC Chairman asserted that the objections of the Centre were enough to understand how the AP finances and economy were crumbling under Jagan Mohan Reddy’s “misrule”. “More and more objections were coming from the Union Finance Ministry to the AP government’s efforts to take excess loans. The Chief Minister, Finance Minister and the AP Finance Department should give explanations to the public on the Centre’s letters,” he demanded.

Accusing the State government of not giving correct and factual information to the Assembly, the Opposition and general public, he said that it should at least explain the factual position to the Centre.
Keshav said the Union Finance Ministry gave its response to a letter received from the AP Finance Department, requesting issuance of the GoI consent for raising open market borrowing of Rs 17,810 crore for the first nine months of 2021-22. The Centre clarified that an amount of Rs 17,923.94  crore was adjusted with the available borrowing space of AP on account of over-borrowing by the State during the earlier years, he said.Accordingly, in the instant case of AP plea, repayments and other borrowings were considered based on the information provided by Andhra Pradesh only as per its letter dated April 22, 2021, he added.