Yanamala Ramakrishnudu said there was a glaring mismatch between budget allocations and government spending on various heads.
Yanamala Ramakrishnudu, Politburo member of the Telugu Desam Party (TDP), demanded that the government form a state-level “Tax Council” to streamline finances, which were out of control, and also to ensure that budgetary rules were scrupulously followed.
In a statement on Monday, Ramakrishnudu said there was a glaring mismatch between budget allocations and government spending on various points.
The government often sought additional grants. In principle, additional grants should not exceed 10% of the target. Yet it was an infinite number of times.
The spending has been made at the whim and whim of Chief Minister YS Jagan Mohan Reddy, he said, adding that additional grants may exceed initial budget allocations in the future.
Over the past 32 months, the CM has committed countless budget rule violations. Budget allocations have been thrown into the wind and funds have been misappropriated indiscriminately. The budget manual has been totally ignored.
Fiscal responsibility and budget management (FRBM) guidelines and basic constitutional standards have been buried, he said.
The FRBM review committee has called on all state governments to form tax councils, but AP has so far failed to comply. This council would ensure the expenditure of public funds in accordance with budget allocations approved by the state legislature, he said.
Mr Ramakrishnudu said that if immediate steps were not taken to control fiscal indiscipline, the state would sink into an irremediable financial crisis. A high-level review should be held on government failures and violations. Fiscal rules must be implemented correctly, he added.