Andhra Pradesh Witnesses 15.39% Increase In Outstanding Public Debt In 2020-21: CAG Report

The CAG stated that the State government was liable for off-budget borrowings amounting to Rs 86,260 crores, which was not disclosed appropriately in its budget reports.

Andhra Pradesh CM YS Jagan Mohan Reddy

Source : ABP Desam

The Comptroller and Auditor General of India (CAG), in its State Finances Audit Report for the Financial Year 2020-21, said that the Andhra Pradesh State government's outstanding public debt at the end of March 2021 increased by 15.39 per cent (Rs 46,444 crore) over the previous year. It also flagged the lack of transparency in the operation of Personal Deposit (PD) Accounts.

According to the CAG report, the state government has not followed the APFRBM Act's targets for the fiscal deficit and outstanding liabilities. The state's liabilities have been growing year over year. Much of the borrowing during the years 2020–21 was used to balance the state's revenue account, which impacted asset building in the state.

The CAG stated that the state government was liable for off-budget borrowings amounting to Rs 86,260 crores, which was not disclosed appropriately in its budget documents. A total of Rs 5,838 crores were given to the state as compensation for the revenue loss brought on by implementing the Goods and Service Tax (GST), with 3,527 crores coming in the form of grants and the remaining amount coming in the form of back-to-back loans from the government of India.

According to the CAG report, revenue spending increased by 11.06 per cent in 2020–21. As a result, the state's revenue deficit increased by 34.42 per cent compared to the previous year.

The CAG also observed that the state's total outstanding liabilities to GSDP during 2020–21 exceeded the target of 35 per cent, considering the additional borrowing cap of 2 per cent of GSDP authorised by the Center for 2020–21.

(With inputs from ABP Desam — It is a Telugu platform of ABP News. For more news, commentary and latest happenings from two Telugu states, follow https://telugu.abplive.com/)