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Only book adjustments, no cash outgo, says Andhra Pradesh Finance Minister's office – Economic Times

The Andhra Pradesh Finance Minister’s Office (FMO) on Sunday said the Finance Department made only book adjustments but did not spend Rs 48,000 crore through special bills (during 2020-21) and denied any misappropriation as was alleged.

In a 13-page note, the FMO refuted former Finance Minister Yanamala Ramakrishnudu’s charge on the issue and said there was no fraud, as no cash transaction took place. The FMO, however, remained silent on the objections by the Comptroller and Auditor General (CAG) on the issue by saying the Finance Secretary wrote an explanatory letter to the CAG.

The FMO blamed it all on the comprehensive financial management system (CFMS) put in place by the previous TDP (Telugu Desam Party) government. “The CFMS has not been systemized. Hence, book adjustments were shown as special bills,” it said. Also, the FMO evaded any reference to the observations of CAG on the financial mismanagement by the Jagan Mohan Reddy government and spending of public money to the tune of Rs 1.10 lakh crore in gross violation of the constitutional provisions.

Referring to the reports of CAG on the accounts presented to the Legislature on March 25, Yanamala asked, “Into whose pockets has Rs 48,284 crore gone.” Yanamala, who is the Leader of Opposition in the Legislative Council, demanded an investigation by the CBI into the misappropriation of Rs 48,284 crore.

The FMO said it was only a book adjustment transaction towards the end of the financial year, which was the practice. This existed even in 2018-19 when Yanamala was the Finance Minister, it added. In 2020-21, there was a shortfall of Rs 29,946 crore in revenue yet Rs 65,447 crore was disbursed to people under freebie schemes. “Our government focused more on handholding the poor during the Covid-19 crisis than spend money on infrastructural development. The TDP has no right to talk on welfare,” the FMO said.

On Saturday, the TDP asked the Centre to invoke Article 360 of the Constitution and clamp financial emergency in Andhra Pradesh to protect it from the alleged gross mismanagement by the YS Jagan Mohan Reddy regime.

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