Chandrababu, Where Is the Wealth Generation? What Happened to the Surety and Guarantee?

AP Former Finance Minister and YSRCP leader Buggana Rajendranath Reddy has strongly criticised the financial indiscipline of the coalition government, particularly objecting to its decision to allow private entities access to government funds and its reliance on off-budget borrowings.

Addressing the media at Press Club in Hyderabad's Somajiguda, Rajendranath Reddy condemned the government's move to pledge all future borrowings of the Andhra Pradesh Mineral Development Corporation (APMDC) and permit private players direct access to the Consolidated Fund of the State, calling it “undemocratic and highly objectionable.”

He alleged that funds raised through the issuance of bonds are being diverted for revenue expenditure, thereby increasing the financial burden on ordinary citizens. “The issuance of Non-Convertible Debentures (NCDs) will further strain the state’s finances, and the cost of servicing these debts will weigh heavily on the economy,” he said.

While acknowledging that issuing bonds is not uncommon, Buggana stated that allowing a private custodian of the bonds to draw funds directly from the RBI is unprecedented. “This sets a dangerous precedent, and we urge the coalition partners to recognise this grave anomaly and hold the Chandrababu Naidu-led government accountable,” he asserted.

Buggana also pointed out that the amount being raised through bonds far exceeds APMDC’s revenue capacity. “These funds are being pushed into miscellaneous accounts and used for day-to-day expenses. For a government that claims to champion wealth creation, this approach is completely contradictory,” he said.

Drawing a comparison with the previous YSRCP administration, he recalled how coalition leaders had vocally opposed even minor off-budget borrowings by the Jagan Mohan Reddy government. “Now, they are silent despite the coalition engaging in far more serious financial improprieties. The double standards are glaring and unacceptable,” he added.

Buggana claimed that under the current government, borrowings have surged while revenues have declined. “So far, the Chandrababu Naidu government has taken loans amounting to ₹1.4 lakh crore. There is no transparency regarding the utilisation of these funds, and not a single major welfare scheme promised during the elections has been implemented,” he noted. “From farmers and students to women, employees, and traders — all sections are disillusioned.”

He further defended the YSRCP’s track record, stating that despite the challenges posed by COVID-19, the party managed state finances prudently and prioritised the welfare of the poor. “We never misused corporation funds. The additional VAT collected was channelled into welfare schemes. In contrast, the present government appears to be enriching private interests at the cost of public welfare,” he said.

Concluding his remarks, Buggana said the coalition’s failure to continue key welfare initiatives and its failed promises of wealth creation have exposed its deceit and misplaced priorities, leaving every section of society disillusioned.