Jagan lambasts Andhra govt for fiscal mismanagement, mishandling state finances

Jagan criticised the recent issuance of non-convertible debentures (NCDs) by Andhra Pradesh Mineral Development Corporation

By Newsmeter Network
Published on : 27 Jun 2025 8:39 AM IST

Jagan lambasts Andhra govt for fiscal mismanagement, mishandling state finances

Amravati: Jagan criticised the recent issuance of non-convertible debentures (NCDs) by Andhra Pradesh Mineral Development Corporation

Amaravati: YSR Congress Party (YSRCP) President and former Chief Minister YS Jagan Mohan Reddy has launched a scathing attack on the Telugu Desam Party-led NDA government, accusing it of fiscal mismanagement and constitutional violations in handling state finances.

In a detailed post on social media platform X, Jagan criticised the recent issuance of non-convertible debentures (NCDs) by Andhra Pradesh Mineral Development Corporation (APMDC) at an interest (coupon) rate of 9.3 percent, calling it fiscally irresponsible and suspect in intent.

APMDC is paying 2.6 percent more than market rates

According to Jagan, the APMDC issued its second tranche of NCDs on June 25, raising Rs 5,526 crore at an interest rate significantly higher by 2.6 percent than the prevailing State Development Loan (SDL) rate. This, he said, would result in an additional annual interest burden of Rs 235 crore on the corporation.

He claimed the total value of bonds raised now stands at Rs 9,000 crore, even as the matter is sub judice in the Andhra Pradesh High Court, which had issued notices regarding the issue.

Private Parties given direct access to State funds

The former Chief Minister also alleged that the TDP government had bypassed legal and administrative protocols by granting private parties access to the Consolidated Fund of the state via an RBI direct debit mandate. He termed this an unprecedented and unconstitutional move.

ā€œThis is a blatant violation of Articles 203, 204, and 293(1) of the Constitution,ā€ he said, warning that it allowed entities to draw public funds without any formal action by state officials.

Government mortgaged its mineral wealth

Jagan further accused the government of mortgaging mineral assets worth Rs 1.91 lakh crore as security for the bond issuance, an amount more than 20 times the actual funds raised. ā€œWith such a massive guarantee, one would assume these bonds are even more secure than government SDLs,ā€ he remarked.

Questions over borrowing spike

Highlighting what he termed as reckless borrowing practices, the YSRCP chief said that the total budgetary and off-budget borrowings in just 13 months under the TDP-led government had already exceeded 50 percent of what his government borrowed in five years.

He demanded an explanation from Chief Minister N Chandrababu Naidu over the high interest rates and the beneficiaries of the transaction. ā€œWho has pocketed the excess burden imposed on APMDC?ā€ he asked.

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