Hyderabad, April 24 (PTI) The YSRCP On Thursday objected to the proposed bonds of the Andhra Pradesh government for raising loans by the Andhra Pradesh Mineral Development Corporation Limited (APMDC), and mentioned the conditions “undemocratic”.
YSRCP leader Buggana Rajendranath Reddy, who approached a press conference here, criticized the alleged movement of the state government to give access to private entities to consolidated funds through off-budget loans and bond issue.
“The turnover of APMDC is much lower than the value of the bonds that are issued, and the collected money is diverted to income expenditure,” said Reddy.
The inclusion of a direct debit clause from the consolidated fund is undemocratic and unconstitutional, bypassing legislative supervision and the violation of several provisions of the Constitution, “he claimed.
He claimed that the income that was increased by the non-convertible bonds (NCDs) would burden the State Square, as a result of which the obligations increase, because it is said that it would not be spent on productive infrastructure.
Reddy said the alleged plan of the TDP-guided alliance to lift £9,000 crore via APMDC via NCDS emphasizes coarse malice management and constitutional violations.
He asked the AP government's decision to remove the preservators of private bonds directly from the RBI, and claimed that it was “unprecedented and a serious violation of democratic standards”.
He added that the financial actions of the NDA Coalition contradicted the earlier criticism of similar practices by the previous YSRCP government.
Despite the COVID-19 crisis, the previous regime provided careful expenditure and focused on well-being. The current coalition, he claimed, now serves private interests at public costs.
He claimed that none of the promised welfare schemes has been released and that all sections – including farmers and employees – are disillusioned.
The YSRCP leader demanded accountability for the £1.40 Lakh Crore borrowed in the past 10 months, claiming that the funds have no transparency and do not provide public benefits.
He argued that APMDC has minimal needs for capital expenditures, because its activities are outsourced, but is said to be pushed into mass guilt to finance the government's income expenses.
The YSRCP leader said that the debt-gain, taxes, depreciation and amortization (EBITDA) Ratio would exceed more than 8.25x, which would be untenable and would increase the dependence on the Stadcaling Government for future debt service.
