Latest news with #BugganaRajendranathReddy
India.com
25-04-2025
- Business
- India.com
YSRCP flags 'Unconstitutional' move in Andhra Pradesh's APMDC bond plan; government refutes allegations
Former Andhra Chief Minister Jagan Mohan Reddy Arrested in Attempt to Murder Case Amaravati: The YSR Congress Party (YSRCP) has raised serious concerns over the Andhra Pradesh government's decision to raise funds through the Andhra Pradesh Mineral Development Corporation (APMDC), alleging it violates constitutional and financial norms. Addressing the media on Thursday, former finance minister Buggana Rajendranath Reddy criticized the reported plan to issue Non-Convertible Debentures (NCDs) worth Rs 9,000 crore, arguing that the borrowings would be used for revenue expenses rather than capital investments. He alleged that pledging APMDC's future revenues and allowing a private entity to access funds directly from the Reserve Bank of India (RBI) marks an 'unprecedented and unconstitutional' departure from established practices. Reddy claimed that the financial burden on the state would increase significantly and accused the Chandrababu Naidu-led government of lacking transparency. He also pointed out that the amount proposed to be raised far exceeds APMDC's annual revenues, raising concerns over debt sustainability. In response, the government has defended its decision, stating that the funds will be deployed for infrastructure and mining development projects. Officials rejected the YSRCP's allegations as 'baseless and unsubstantiated,' maintaining that the bond issuance process follows due financial procedures. The political row adds another layer of tension between the ruling coalition and the opposition, with both sides trading charges over fiscal management and governance practices. (With PTI Inputs)
Hans India
25-04-2025
- Business
- Hans India
Gross financial indiscipline by coalition govt: Buggana
Hyderabad: YSRCP has taken strong objection to the financial indiscipline of the coalition government and its decision to allow private players to have access to government funds while going for off-budget borrowings. Speaking to media here on Thursday, former Finance Minister Buggana Rajendranath Reddy said the government's decision to pledge all future borrowings of State Mineral Development Corporation (APMDC) and allowing private parties to have direct access to the consolidated fund is highly objectionable and undemocratic. The amount being raised by the issue of bonds would be used for revenue expenditure which increases the burden on common persons, he said, adding that the issuance of NCD (non-convertible debentures) would further burden the State and its servicing would take a heavy toll. 'Issuing bonds is normal, but giving permission for private party, which is the custodian of the bonds to directly draw from the RBI, is unprecedented and objectionable and we demand that such coalition partners should take a serious view of this anomaly and question the Chandrababu government,' the former Minister pointed out. The amount to be raised through bonds is many times more than the revenue of the APMDC and the amount would be going into miscellaneous account and for revenue expenditure and for a government that boasts about wealth creation this is in total contrast, he said. Rajendranath reminded that when YRCP pledged some properties, the coalition partners had raised a hue and cry and spoke in high decibels about off-budget borrowing, but now the same coalition seeking such financial impropriety is highly condemnable. When compared to Jagan Mohan Reddy government, the coalition government's loans have gone up and revenue has come down. The loan taken so far by the Naidu government runs into Rs 1.4 lakh crore and there is no account as to where did this money went. He alleged that no welfare scheme has been implemented as promised during elections, all sections of people from farmers, to students, to women to employees and traders are disappointed with the government. During our term, the additional VAT collected was used for welfare schemes and we did not misuse Corporation money, he said. Despite Covid, we have managed finances in a better manner besides fulfilling our agenda of welfare of the poor while the coalition has been trying to benefit the private individuals from the ex-chequer, he said. The failure to continue welfare schemes and the concept of wealth creation falling flat has exposed the deceit of the coalition government as every section of the society is affected, Rajendranath stated.
Mint
24-04-2025
- Business
- Mint
YSRCP slams Andhra govt over financial indiscipline, calls bond plan undemocratic
Hyderabad, Apr 24 (PTI) The YSRCP on Thursday objected to the Andhra Pradesh government's proposed bonds for raising loans through the Andhra Pradesh Mineral Development Corporation Limited (APMDC), calling the terms "undemocratic." YSRCP leader Buggana Rajendranath Reddy, addressing a press conference here, criticised the state government's alleged move to allow private entities access to consolidated funds through off-budget borrowings and bond issuance. "APMDC's revenue is much lower than the value of the bonds being issued, and the money raised is being diverted toward revenue expenditure," Reddy said. The inclusion of a direct debit clause from the Consolidated Fund is undemocratic and unconstitutional, bypassing legislative oversight and violating multiple provisions of the Constitution," he alleged. He claimed that the revenue raised through the Non-Convertible Debentures (NCDs) would burden the state exchequer, increasing liabilities, as it would allegedly not be spent on productive infrastructure. Reddy said the TDP-led alliance's alleged plan to raise ₹ 9,000 crore through APMDC via NCDs highlights gross mismanagement and constitutional violations. He questioned the AP government's decision to allow private bond custodians to draw directly from the RBI, claiming it was "unprecedented and a serious breach of democratic norms". He added that the NDA coalition's financial actions contradicted the earlier criticism of similar practices by the previous YSRCP government. Despite the COVID-19 crisis, the previous regime ensured prudent spending and focused on welfare. The current coalition, he alleged, is now serving private interests at public cost. He claimed that none of the promised welfare schemes have materialised, and all sections—including farmers and employees—are disillusioned. The YSRCP leader demanded accountability for the ₹ 1.40 lakh crore borrowed over the past 10 months, asserting that the funds lack transparency and fail to deliver public benefits. He argued that APMDC has minimal capital expenditure needs, as its operations are outsourced, yet it is allegedly being pushed into massive debt to fund the government's revenue spending. The YSRCP leader said that the debt-to-earnings before interest, Taxes, Depreciation, and Amortisation (EBITDA) ratio would exceed 8.25x, making APMDC's finances unsustainable and increasing itsdependence on the state government for future debt servicing. First Published: 24 Apr 2025, 03:56 PM IST
