Political News

RBI Permitted Jagan Gov To Borrow Rs 13,500 Crs

In what could be considered a major breather for YS Jagan-led Andhra Pradesh government, which has been relying on loans and debts for financial functioning, the RBI has permitted the government to borrow Rs 13,500 crores.

The RBI has allowed the government of Andhra Pradesh to borrow a total of Rs 10,000 crores in the next three months. The remaining Rs 3,500 crores can be borrowed in the last quarter of the financial year 2021-22.

Andhra Pradesh finance minister Buggana Rajendranath Reddy and the state finance principal secretary SS Rawat spoke with the central agencies regarding the borrowings and managed to receive the approval for the same.

Jagan had announced several cash transfer schemes like Amma Vodi, Kapu Nestham, among others after taking charge as the chief minister. However, the state’s gross income is not even nearly sufficient for the implementation of these schemes.

So, the government has been heavily relying on loans from the RBI and the Centre to fund the cash transfer schemes.

This post was last modified on 14 September 2021 6:00 pm

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