Already burdened with more than Rs 1.50 lakh crore debts, the State government is planning to go for yet another round of borrowing from external sources. The government is paying over Rs 7,000 crore towards interest on the borrowings every year. This year, Finance Minister Yanamala Ramakrishnudu is planning to borrow around Rs 30,000 crore to fill the coffers. This would be around 7.9 per cent rate of interest.
The TDP government has been leaving no source to borrow from the external sources to meet its expenditure. The State even after four years of its bifurcation could not create even a single source to raise its own resources. The GST had robbed it off, like all other States, to have local sources of revenue by raising taxes locally. The only option for the States now is to have their own resources that would bring assured income. The only source now is the liquor that gives some assured revenue to the State. The other sources like electricity, APSRTC, APIIC etc, are all running in losses. The Mines Corporation, shockingly, too is running in losses while the mineral wealth of the State is robbed every hour by the contractors across the State. The metal, sand, gravel and stone quarries are not adding any revenue to the State exchequer not because there is no activity but the revenue goes into the pockets of the politicians.
While the revenue goes unaccounted like this, the expenditure had not come down yet. Three years after total shifting of the Heads of Department (HoDs) from Hyderabad, not a single office is housed in its own building. More than 75 HoDs in the State are housed in rented buildings around Vijayawada and Guntur. The monthly rentals run into a few crores of rupees every month. It is only the Secretariat which is located in the own building where just less than 1500 employees work, while the rest of the government offices are in private buildings paying huge rent, which included handsome commissions shelling out from the exchequer.
The government had not focused on creation of its own assets. Like the temporary secretariat, it should have added two to three more blocks at Velagapudi to house these HoDs bringing down the monthly bill. This was completely ignored by the government which is more interested in promotional campaign for its every programme.
The spending on the part of the government had not come down, rather it had increased several folds over the last four years. The lavish spending by the Ministers and the officers, who follow the Chief Minister, continue unmindful of the revenue deficit that the State has started with. By the end of this five years term of the TDP, the State is in all probability, set to have a debt burden that crosses Rs 2 lakh crore, which no economist would see a health economy for the State.