Jagan Mohan Reddy hits out at TDP-led Andhra govt for lack of fiscal discipline

Amaravati, June 26 (IANS) YSR Congress Party President and former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy, on Thursday, criticised the Telugu Desam Party-led NDA government for what he called lack of fiscal discipline and disregard for the constitutional framework.

He alleged that the Andhra Pradesh Mineral Development Corporation (APMDC) non-convertible debentures (bonds) were issued at a coupon (interest) rate of 9.3 per cent, which is 2.6 per cent higher than the prevailing state development loan (SDL) rates.

Jagan Mohan Reddy posted on social media platform X that owing to the high interest rate, the additional yearly burden on the APMDC is to the tune of Rs 235 crore.

He asked Chief Minister N. Chandrababu Naidu to explain who pocketed this amount.

"It is learnt that, on June 25, 2025, APMDC concluded the second tranche of its NCD (bond) issuance at a coupon (interest) rate of 9.3 per cent and raised Rs 5,526 crore, taking the aggregate value of the issuance to Rs 9,000 crore. This is despite the matter being admitted by the Andhra Pradesh High Court and notices served. Further, it is quite apparent that the proceeds of the issuance would be utilised for financing government revenue expenditure," he posted on X, tagging Union Finance Minister Nirmala Sitharaman, Prime Minister's Office and others.

"Despite this, the APMDC NCDs (bonds) were issued at a coupon (interest) rate as high as 9.30 per cent, which is 2.6 per cent higher than the prevailing SDL rate. Owing to the high interest rate, the additional yearly burden on the APMDC is to the tune of Rs 235 crore and the term of NCDs is understood to be 10 years."

The former Chief Minister alleged that in total disregard to the constitutional provisions and in an unprecedented manner, the TDP-led NDA government granted private parties, access to the consolidated fund of the state through RBI direct debit mandate, owing to which, private parties can access the state exchequer and withdraw funds without any requirement of any action from the state government officials.

This, he said, is a blatant violation of Articles, 203, 204 and 293(1) of the Constitution of India.

"As an additional security for the NCDs (bonds), in a manner unheard of, the TDP government also mortgaged mineral wealth, which is government property worth Rs 1,91,000 crore for NCD (bond) issuances of aggregate value Rs 9,000 crore," the former Chief Minister added.

"With such permission to access state consolidated fund and mortgage of government property of disproportionately huge value, one would imagine that these bonds are even more secure than the SDLs issued by the state government," Jagan Mohan Reddy said.

The YSRCP President added that with this NCD issuance, the total budget and off-budget borrowings availed and secured in this 13-month period by the TDP-led NDA government exceeded 50 per cent of what was borrowed by previous YSRCP government over a five year period.

--IANS

ms/khz