Dr. Purandeswari, the State President of the BJP in Andhra Pradesh, is urgently appealing for a thorough assessment of Andhra Pradesh's financial state, coupled with the publication of a comprehensive white paper on the subject.

In the past, I had the opportunity to meet with you and submitted a representation dated 26/7/2023 highlighting various financial irregularities that have occurred under the governance of the Andhra Pradesh government. I estimated that the total debt of the state stood at a staggering 10.77 lakh crores.

However, a recent response from the Ministry, given in writing in Parliament, states that the debt amounts to only 4.42 lakh crores, specifically borrowed from the Reserve Bank of India. Notably, this response failed to address other outstanding debts, including those owed by state-owned corporations, which were also inquired about by a Member of Parliament.

The media outlets owned by the state government, often criticized for promoting its family-owned publications, widely publicized this discrepancy. Their coverage has cast a shadow on the efforts made by the state BJP to protect the interests of the public, especially regarding the future generations' financial security, debt sustainability, and loan repayments.

she urgently request that a forensic audit be conducted on the state's finances and that the findings be published in a white paper. This report should include details about outstanding payables, corporation debts, mortgaged assets, and issued Sovereign Guarantees.

It is essential to bring to your attention that the state has defaulted on several payments, even admitting its inability to pay for power purchases from Independent Power Producers (IPPs) despite court orders to do so.

Suppliers and contractors have gone unpaid for over four years, with no provision for interest, while the state collects an 18% interest on delayed payments of municipal taxes, property taxes, electricity bills, and State GST dues. Many members of trade bodies have sought assistance in receiving their dues with interest, fearing legal action if they are compelled to approach the courts.

She urge you to establish a mechanism to ensure that all genuine suppliers are paid with interest within a specified timeframe of three months, as their unpaid loans are contributing to a growing crisis of non-performing assets and defaults.

As of now, the state's revenue stands at a mere 90,000 crores, with an additional 35,000 crores coming from the central government's share of taxes, totaling 135,000 crores. The state's budget indicates expenditures of 2,60,000 crores, with the rest sourced from central grants or RBI borrowings and diversions from state-owned corporations.

The state has been borrowing an additional 50,000 crores each year, despite maintaining a constant annual revenue of 90,000 crores. The current debt has escalated to nearly 11 lakh crores, and the interest alone, calculated at 8% per annum, amounts to 88,000 crores.

Repayment would necessitate a minimum of 36,000 crores annually if spread over 30 years, requiring a total minimum of 1.24 lakh crores each year to service the debt and repay all suppliers within the bounds of the law, with minimal interest.

This grim financial situation underscores that without immediate preventive measures, future governance in Andhra Pradesh could become a nightmare.

In addition to the financial concerns, Andhra Pradesh Beverages Corporation sells low-cost liquor solely in cash to approximately one crore consumers daily, impacting their health and financial well-being.

The estimated revenue per person from this source is around 200 rupees per day, amounting to an excess of 30,000 crores in annual cash revenue. Notably, all aspects of manufacturing and distribution are controlled by ruling party leaders.

She earnestly request an investigation by the Serious Fraud Investigation Office (SFIO) into all distilleries in Andhra Pradesh and the Andhra Pradesh Beverages Corporation to uncover the truth.

Furthermore, I urge you to ensure that all state payables and Sovereign Guarantees are included within the Fiscal Responsibility and Budget Management (FRBM) limit.

It is of utmost importance that these irregularities are thoroughly investigated, and measures are implemented to ensure financial discipline, thereby safeguarding the future generations of Andhra Pradesh from financial collapse and default.

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