YSR Congress Party (YSRCP) leader and Leader of Opposition in Andhra Pradesh Legislative Council Botsa Satyanarayana on Wednesday accused the state government of misleading the state legislature by submitting an incomplete and inaccurate record on loans in the last two years.
In a letter to state Governor S Abdul Nazir, Satyanarayana said the government understated the loans made during the financial years 2024-25 and 2025-26, and also deleted key components, in its response to starred questions by three YSRCP MLCs.
“According to the reply, the total loans for 2024-25 $60,485 crores. However, the financial accounts reviewed by the CAG clearly show that actual net liabilities are about to occur $81,082 crores. This leaves a gap of more than $. 20,500 crores which is unjustified,” he wrote.
Satyanarayana claimed that loans under the Ways and Means provided by the Reserve Bank of India were not included, even though they are classified as internal debts in official records.
“Similarly, net liabilities in the general account such as deposits and reserve funds were also ignored, despite being used to meet the fiscal deficit. Adjustments relating to GST compensation loans were reduced without proper justification,” he added.
He added that when the financial deficit ended $81,000 crore, such omissions “create a false impression that the government’s debt burden is lower than it actually is.”
Botsa also claimed that the government’s claims of no off-budget loans in 2025-26 are incorrect. “Government-backed companies like AP Marketing Federation (MARKFED) and AP Civil Supplies Corporation have been allowed to raise loans with state guarantees. These entities are completely dependent on government support and these loans clearly fall under budgetary obligations as per the guidelines of the Government of India,” he wrote.
It also highlighted the lack of consistency in the financial management approach. “When details were sought for loans from 2014 to 2024, both the public debt and the public account were included. But in the periods 2024 and 2025 and 2025 and 2026, the public account was excluded. This change in approach raises serious concerns,” he said.
He asked the governor to intervene and ensure corrective action. “The response should be withdrawn and replaced with accurate figures consistent with the audited CAG accounts. Responsibility for the discrepancies should also be assigned,” he said.
State Biodiversity Corporation chairman and spokesperson N Vijay Kumar said there was no misleading of the House about market loans. “During the fiscal year 2024-25, it was the YCP that was in power for the first two months – April and May; during these two months, the then government resorted to borrowing $“Rs 27,205 crore,” he said.
Speaking about the demand regarding extra-budgetary loans, Kumar said that the current government has done well within the limits allowed by the Reserve Bank of India. “State Finance Minister Bayavula Kesav clearly said in the House that the government will not use extra-budgetary loans taken by companies like MARKFED or the Civil Supplies Corporation. They only represent a guarantee for the loans and, therefore, do not come into the account of the state government,” he said.
