The YSR Congress Party (YSRCP) has strongly criticized the financial mismanagement of the coalition government, particularly its decision to allow private entities direct access to government funds through off-budget borrowings.

Former Finance Minister Buggana Rajendranath Reddy condemned the government’s move to pledge future borrowings of the Andhra Pradesh Mineral Development Corporation (APMDC) and issue Non-Convertible Debentures (NCDs) for revenue expenditure, calling it undemocratic and unconstitutional.

Reddy highlighted that the issuance of bonds, while common, is being misused as private custodians of these bonds are granted unprecedented access to draw funds directly from the Reserve Bank of India (RBI). This bypasses legislative oversight and violates constitutional provisions, including Articles 203, 204, 293(1), and 293(3). The funds raised through these bonds, amounting to Rs. 9,000 crore, far exceed APMDC’s revenue and are being diverted to miscellaneous accounts, undermining the corporation’s financial health and sustainability.

The debt burden on APMDC is set to exceed Rs. 10,000 crore, raising its debt-to-EBITDA ratio to an unsustainable 8.25x. This jeopardizes APMDC’s autonomy and forces reliance on the state government for debt servicing. Reddy accused the coalition government of mortgaging public resources, including minor mineral rights, to secure these borrowings, which he termed as fiscal indiscipline disguised as PSU operations.

Comparing the coalition government to the previous YSRCP administration, Reddy noted a significant increase in loans and a decline in revenue. He criticized the lack of welfare schemes and transparency in the utilization of funds, stating that the coalition’s focus on wealth creation has failed, leaving every section of society disappointed.