The YSRCP leader claimed that the government was floating beverages bonds to raise ₹5,750 crore at 9 percent interest, effectively mortgaging future income.
Published Dec 14, 2025 | 6:27 PM ⚊ Updated Dec 14, 2025 | 6:27 PM
Buggana Rajendranath Reddy
Synopsis: YSRCP leader Buggana Rajendranath Reddy on 14 December accused the TDP-led NDA government in Andhra Pradesh of hypocrisy, alleging that it was raising ₹5,750 crore through beverages corporation bonds at 9 percent interest by mortgaging future liquor revenues, without Cabinet approval or a formal government order. He criticised the move as hypocritical, noting that the TDP had been vehemently opposed to a similar measure when the previous YSRCP government adopted it to fund welfare schemes.
Former Finance Minister and Yuvajana Sramika Rythu Congress Party (YSRCP) leader Buggana Rajendranath Reddy on Sunday, 14 December, alleged that the Telugu Desam Party (TDP)-led NDA government in Andhra Pradesh was heavily borrowing against future liquor sales revenue through the beverages corporation, without issuing any Government Order (GO) or obtaining Cabinet approval.
Speaking to media persons in Hyderabad, the YSRCP leader claimed that the government floating beverages bonds to raise ₹5,750 crore at 9 percent interest, effectively mortgaging future income.
He noted what he described as the hypocrisy of the TDP, recalling that the party had vehemently criticised the previous YSRCP government for similar measures taken to fund welfare schemes.
“The present government has provided a State guarantee for the beverages corporation to raise these loans. If the corporation fails to repay, the burden falls on the State government. It has also consented to direct recovery of principal and interest from the corporation’s income. Yet, the same TDP raised a hue and cry when we did exactly this to meet welfare commitments,” Reddy said.
Reddy said Chief Minister Chandrababu Naidu had himself acknowledged in the Assembly that the YSRCP government used such borrowings for welfare rollout.
“But now, while extending guarantees to the beverages corporation, the NDA government refuses to admit it is for welfare,” he added.
The YSRCP leader accused the NDA government of misleading the media and the public on its borrowings, pointing to the absence of Cabinet approval.
He questioned the silence of TDP-favouring media, which had earlier ridiculed the YSRCP for bond issuances, calling it a “kick” to the coffers.
“If the TDP does it, it is wealth creation? If we did it, was it irresponsible borrowing?” he asked, warning that such practices, prioritising liquor sales over balanced policies and without clear welfare allocations, would burden future governments.
The former Finance Minister said the NDA government was unclear about how the bond proceeds would be spent, unlike the YSRCP’s stated use of funds for welfare.
He recalled that Naidu had described the beverages corporation issuing bonds under the YSRCP government as “the largest fraud” of his political career during Assembly debates.
“Now the TDP government is doing the same thing we did for welfare. Let Naidu either admit the YSRCP committed no fraud or confess that he is now committing one, at his advanced age,” Reddy said.
Reddy also raised concerns over commissions paid to bond issuers, noting that the current government was hiring a Mumbai-based issuer, just as the YSRCP had done, a practice the TDP had then alleged involved bribes.
He criticised the government’s irrevocable undertakings, including guaranteeing repayment, promising that there would be no prohibition on liquor sales, and setting up escrow accounts for automatic deductions.
“We did the same, but you called it unconstitutional and compared Andhra Pradesh to Sri Lanka’s crisis. Now you are doing exactly that,” he said.
Explaining the YSRCP’s special margin mechanism, Reddy said the party had brought legislation in the Assembly to channel unauthorised price hikes by private players into the State exchequer for loan repayments, a step Naidu had condemned as fraud but was now replicating.
Reddy also took a dig at Jana Sena leader and Deputy Chief Minister Pawan Kalyan for remaining silent on the issue.
“Pawan Kalyan, who claimed he joined the coalition to question the government, offers only sheepish smiles when Naidu makes allegations against YSRCP. Why is he quiet now when his own government is guaranteeing beverages corporation bonds?” he asked.
