AP In Huge Debts, Confirms Centre

The state of Andhra Pradesh is reeling in huge debts. In the recent past many reports have surfaced on AP’s financial position yet the state government believes that all is well.

On the debts and financial position of AP, TDP Rajya Sabha MP Kanakamedala Ravindra Kumar questioned the government of India and asked whether the Centre has any knowledge that AP government loaned Rs 41,029 crore from banks to its companies and corporations.

In reply to the TDP MP’s query, Union Minister of State for Finance Dr Bhagwat Kishanrao Karad stated that AP government had borrowed Rs 57,479 crore from state owned banks during the period April 1st 2019 to November 30th 2021.

The TDP MP also raked up AP’s revenue and fiscal deficit matters in the Parliament. AP’s revenue deficit is at 662.80 percent while the fiscal deficit was up by 107.79 percent in the first half of the 2021-22 financial year. Did the government of India take these things into cognisance?, asked MP Kanakamedala.

Pankaj Chaudhary, Union Minister of State For Finance answered this question and he added that for the financial year 2021-2022, the AP government estimated the revenue deficit could be around Rs 5000.06 crore but as of September 30th, it stood at Rs 33,140.62 crore.

And for the same financial year, the fiscal deficit was projected to be Rs 37,029.79 crore but as of September it reached Rs 39,914.18 crore. The data provided by the government of India is mentioned in the Comptroller and Auditor General of India (CAG) official website.

The above figures are just related to state owned banks and the AP government had borrowed many such loans from private banks too. The details of debts related to private entities are yet to be disclosed.