YSRCP govt. diverted funds meant for capital infrastructure development, says Finance Minister Payyavula Keshav

Finance Minister Payyavula Keshav
| Photo Credit: File Photo

Due to diversion of funds meant for capital infrastructure development by the previous YSRCP government during the financial year 2023-24, the Central government has cut the borrowing capacity of State government by ₹7,600 crore, according to Finance Minister Payyavula Keshav.

“The NDA government in Andhra Pradesh has started clearing the dues and has updated the Central government about the same, and has requested that it be enabled to access its rightful debt capacity,” Mr. Keshav told The Hindu on Tuesday.

Mr. Keshav said the diversion of funds happened with respect to the Special Assistance to States for Capital Infrastructure (SASCI) Scheme.

He explained that as per the directions of Chief Minister N. Chandrababu Naidu, the government had been rectifying the financial issues for the last nine months. The verified accounts were also submitted to the Central government, as per the rectification measures taken, he added.

After submitting the rectified accounts in the current financial year 2024-25, the Central government approved ₹2,000 crore, he added. The Minister said the State government would submit further clarifications related to ₹1,600 crore, as requested by the Central government.

He said the YSRCP government had spent only ₹4,000 crore under SASCI for developing capital infrastructure in the previous financial year, while the NDA government spent more than ₹7,000 crore in the last nine months.