Only accounting adjustments, no cash outflow, Andhra Pradesh finance minister’s office says

The Andhra Pradesh Finance Minister’s Office (FMO) said on Sunday that the finance ministry only made accounting adjustments but failed to spend Rs 48,000 crore through special bills (in 2020-2021) and denied any misappropriation as alleged.

In a 13-page memo, the FMO refuted accusations by former finance minister Yanamala Ramakrishnudu on the matter and said there was no fraud as no cash transactions took place . The FMO, however, remained silent on the objections of the Comptroller and Auditor General (CAG) on the matter saying that the finance secretary has written an explanatory letter to the CAG.

The FMO blamed everything on the Comprehensive Financial Management System (CFMS) put in place by the previous TDP (Telugu Desam Party) government. “The CFMS was not systematized. Therefore, the accounting adjustments were presented as special invoices,” he said. Furthermore, the FMO evaded any reference to the CAG’s observations on the financial mismanagement of the Jagan Mohan Reddy government and the spending of public funds to the tune of Rs 1.10 lakh crore in flagrant violation of constitutional provisions.

Referring to the CAG’s reports on the accounts presented to the Legislative Assembly on March 25, Yanamala asked, “In whose pockets have passed Rs 48,284 crore.” Yanamala, who is the leader of the opposition in the Legislative Council, has demanded a CBI investigation into the misappropriation of Rs 48,284 crore.

The FMO said it was only an accounting adjustment towards the end of the year, which was the practice. This existed even in 2018-2019 when Yanamala was finance minister, he added. In 2020-21, there was a shortfall of Rs 29,946 crore in revenue, but Rs 65,447 crore was paid out to people through gift schemes. “Our government has focused more on reaching out to the poor during the Covid-19 crisis than spending on infrastructure development. The TDP has no right to talk about welfare,” the official said. FMO.

On Saturday, the TDP called on the Center to invoke Article 360 ​​of the Constitution and block the financial emergency in Andhra Pradesh to shield it from the alleged gross mismanagement of the YS Jagan Mohan Reddy regime.