AMARAVATI: Presenting a grim picture of Andhra Pradesh finances, Governor S. Abdul Nazeer told the joint session of the Assembly and Council on Monday that putting the governance back on track was truly a herculean task.
He revealed that it has become difficult for the new government to meet even the essential committed expenditure with the reduced revenue of the state.
“The overall debt has more than doubled in the last five years, with huge outstanding payments of salaries and pensions, debt repayments for the debt burden of about Rs 10 lakh crore, payments for power sector dues, Civil Supplies and other liabilities has become challenging. Putting the governance back on track is truly a herculean task, ” the Governor said in his address on the first day of the Budget session.
He appealed to people to understand the current alarming financial situation and cooperate with the government in rebuilding the state.
Stating that usually winning elections and assuming responsibility is a happy event, the Governor said perhaps for the first time in the country, the members are not in a position to rejoice and have the means to meet people’s aspirations immediately. Keeping this in view, the government is proposing to go for a Budget after meaningful deliberations, he said.
Abdul Nazeer stated that the massive destruction, which resulted in a huge loss of the natural resource base and human value system, really made the reconstruction process difficult and time taking one. To assess the complete loss, and plan for resource mobilization and development is a cumbersome task.
“It requires collective thinking, and extensive discussions with intelligentsia and academicians, to explore ways to overcome the current crisis. It also involves finding ways to restart the entire development ecosystem through short, medium and long-term plans in light of the new development paradigm of Vikasit Bharat@2047, ” he said.
Asserting that the extent of the real damage done to Andhra Pradesh in the last five years had not come into public discourse thus far, the Governor said the misgovernance from 2019-24, created a trust deficit with regulatory authorities and damaged the brand of Andhra Pradesh among investors.
He claimed that the damage and losses during the period 2019-24 have been more severe compared to the state reorganisation in June 2014. The government that assumed charge in June 2019 started on a destructive note with the demolition of ‘Prajavedika’ that continued unabated till the end of the regime in June 2024.
“The biggest damage was done to the ‘Brand AP’. No noteworthy companies came forward to invest in the state. The corrupt practices at all levels coupled with the weaponization of instruments of governance across revenue-earning Departments for personal gains; and the sabotaging of checks and balances made several state institutions and private companies defunct, and forced the existing enthusiastic investors and entrepreneurs to move out of Andhra Pradesh to other States, ” he said.
He mentioned that the capital expenditure was reduced by 60 per cent in 2019-24 compared to 2014-19. Departments such as Water Resources and Transport, Roads and Buildings which undertake substantial capital works were left critically short of funds to carry out any works.
He pointed out that the compound annual growth rate of the State’s Own Tax Revenue slipped from 12.8 per cent to 8.1 per cent during this period. On the other hand, the Revenue expenditure increased from 7.8 per cent to 10.5 per cent, whereas the capital expenditure growth declined steeply from 26.4 per cent to 3.4 per cent. Lower share of capital expenditure to public debt occurred during the period 2019-24 is a clear indicator that the government met revenue expenditure also through borrowed funds. The CAGR in per capita debt has been higher at 14 per cent while the CAGR in Per Capita Income is only 9.7 per cent. This reflects the fiscal profligacy of the previous regime as no capital formation took place.
He alleged that the Amaravati capital region envisioned as the focal point of growth for the nascent state of Andhra Pradesh, was totally destroyed. In an attempt to scrap the Amaravati dream, the government confused the people with its malicious three capital cities idea under the guise of decentralized governance.
“During the period 2019-24, no irrigation project, no new industries, no infrastructure relating to roads, buildings, hospitals, drinking water, was taken up. The cancellation of MoUs in the energy sector and other infrastructure projects further demonstrated the negative attitude of the Government. Such disastrous decisions, unmindful of consequences, have led to unrest among the youth and job aspirants. Prevalence of an uncertain environment has eventually led the youth towards addiction to illegal substances, causing a drug menace, ” he said.
The Governor claimed that the Telugu-speaking people all around the world were upset and demoralized by the uninspiring deeds of the government. They anxiously and desperately waited for a change in governance that would take them forward in the 21st century.
“A huge and historic mandate has been given to the NDA, hitting an unprecedented 93 per cent strike rate, thus reaffirming faith in democracy, ” the Governor said.
He told the joint session that the government has already started fulfilling the pre-poll promises and announced a steadfast commitment to ‘Super Six’ promises. “My government has launched its trademark people-centric governance soon after assuming office with a series of measures such as announcing a Mega DSC for filling up 16, 347 teacher vacancies, abolishing the Land Titling Act, enhancing social security pensions to Rs 4, 000, organising a Skill Census and re-opening the Anna Canteens to provide food for the poor at a very nominal rate of Rs 5, and supply of free sand. My government will initiate the other important measures also, ” he added.