The Telugu Desam party has demanded immediate imposition of ‘Financial Emergency’ charging that the primary sectors of agriculture, electricity, irrigation and welfare were in a crisis, because of the “corruption, and incompetence of rulers for the past 8 years”.
In a statement here on Monday, party Politburo member Yenamala Rama krishnudu has said that the present crisis was caused by the series of scams that occurred during the rule of Y S Rajasekhara Reddy and the continuing corruption and incompetence of the later government.
Rama Krishnudu has lamented that despite taxing the common man in an unprecedented manner, the state was buried in debts. Prices of essential commodities had skyrocketed and the common man was not in a position to purchase rice, pulses, cooking oil or any other commodity, he said and added that because of the irregularities committed by the government, coffers of the state had become empty. He said the government was expressing its total helplessness as it was unable to bring the economy back on rails. Stating that the fiscal deficit was ever increasing, he said the revenue deficit was not hopeful. The government has forced people to take their problems to the streets as it had imposed cuts on subsidies on agriculture and welfare, he has alleged. He has also stated that because of the cuts in the planning sector, there was no development in any sector and welfare has taken back seat.
The former finance minister has said that the RBI report has stated that as long back as 2009-10 itself a situation arose when the government had to depend on ways and means. He said the government had resorted to drawing from ways and means to the extent of Rs. 218 crore in 2010-11, and as per the revised budget estimates, in 2011-12 to the tune of Rs. 1000 crore. He said as per the 2012-13 budget estimates, the government would resort to ways and means to the tune of Rs. 1500 crore.
Rama Krishnudu has said that while the government’s revenue through taxes was Rs. 13,805 cr. during 2003-04, it shot up to Rs. 66,025 cr. In 2012-13, marking an increase of Rs. 53,000 cr. He said still the government has imposed a burden of Rs. 1,16,000 crore through taxes and debts. He said the government had the distinction of turning the state bankrupt, despite considerable growth of revenue and borrowings. He has said because of the alarming situation, Financial Emergency should be immediately imposed under article 360, and 360(3). He has also demanded that steps should be taken to set right primary sectors like agriculture, energy, irrigation and welfare, which were in shambles. (NSS)