Amaravati: Finance Minister Buggana Rajendranath Reddy said that the TDP government had mismanaged the economy resulting in huge spike in inflation and left behind a debt burden of Rs 3.62 lakh crore on the State exchequer.
Reddy released a White Paper on the status of the economy in the State and addressed a press conference on Wednesday. He said in order to tide over the financial crisis that had gripped the State, the YSRCP government would lay more emphasis on leveraging human resources.
In the period between 2014 and 2017, the State registered a mere five percent GSDP growth rate, which had been way less the national average. While the nation-wide inflation had come down, it spiked sharply in Andhra Pradesh, the Finance Minister said.
Although the FRBM Act mandates that a state should not borrow more than three percent of the state GSDP, TDP government had taken debts beyond the prescribed limits. The income received by the State in form of taxes was also considerably reduced, even way less than Telangana. The investment made in key sectors had been extremely low. The State revenue deficit stood at whopping Rs 66,000 crore, the Finance Minister added.
The Finance Minister informed that their government would focus on improving the human resources' capability so as to increase the Human Capital. Therefore, education sector would be given preference. "Most of Kerala's revenue is drawn from human resources. This is because of the literacy there. We will also try to do the same thing," he explained.
He accused the TDP government of leaving behind Rs 18,000 crore pending arrears yet to be paid to various corporations. In order to reverse the depressing financial situation of the State, it would take some time, he clarified.