The Hindu : "CM's borrowing spree will hit State"

Online edition of India's National Newspaper
Thursday, Feb 19, 2004

Andhra Pradesh

Andhra Pradesh - Hyderabad

"CM's borrowing spree will hit State"

By Our Special Correspondent

HYDERABAD, FEB. 18. Telangana Regional Congress Coordination Committee leaders have accused the Chief Minister, N.Chandrababu Naidu, of pushing the State into a debt trap. The `borrowed glory' of the Chief Minister should be ended, they said.

Talking to presspersons here on Wednesday, leaders of the TRCCC, G.Chinna Reddy, K.Keshava Rao, P.Goverdhan Reddy and P.Narsa Reddy, said that the Chief Minister had ushered in a de facto rule of the World Bank in the State, which would cripple the economy forever. The State had become economically bankrupt and the Government was depending on borrowings even for meeting the ways and means expenditure.

Referring to the Chief Minister's argument that Andhra Pradesh would be in no position to secure additional loans if the TDP was defeated in the elections, they said there could not be a greater shameful argument. The latest loan of $220 million given by the World Bank would only add to the burden.

They said that it was strange that the Government which had not invested money on productive purposes should blindly continue its borrowing spree, the interest on which itself amounted to Rs.9,000 crores per annum now. They added that 78 per cent of the fresh loans were being spent on servicing the previous loans.

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