Beleaguered Andhra Pradesh is going through a difficult and tumultuous phase financially. The state is reportedly struggling to pay salaries to the government employees. As January marks the new year and Sankranthi festival is around the corner, the pressure is mounting on the government to pay employees salaries timely.
On the other hand, AP government’s requests to raise loans have been hit by roadblock. With this, CM Jagan is reportedly seeking PM Modi’s intervention and support to increase the loan limit for AP. Jagan has sought PM Modi’s appointment and it has been confirmed for Dec 28th. Jagan is flying to Delhi for Modi’s support.
AP has borrowed loans beyond its limit. This was confirmed in various reports. The overall debts of AP is close to Rs 10 lakh crore which is going to be a new record in loans.
The YSRCP-led government made debts of Rs 2.08 lakh crore from the RBI in the last 3 years of rule. From the Centre, it made another debt of Rs 5952 Crore. The debt made by the Municipal Corporations in the last 3 years was at Rs 80,603 Crore. By mortgaging properties, the state made another debt of Rs 87,233 crore. Besides all the above, the state took a loan of Rs 8,305 crore on the future revenue of liquor sale. Thus, the state is pushed into neck-deep debts.
The AP government is currently running the state on overdrafts. As per analysts, a state is not allowed to be in Overdrafts for more than 36 days in a quarter. In the present quarter (Q3 of FY 22-23), AP is in overdrafts for 28 days already. In December 2022, only 4 days are left. Thus, it becomes very critical for AP to run the remaining days. So far, the AP government managed this situation by bringing the state out of ODs for a day or two and again pushing back into the ODs. Hence, the meeting with PM Modi is crucial for the Jagan government.