Despite the alarming financial situation, the Andhra Pradesh government continues to make debts and in a shocker, the state government borrowed Rs 12,000 crore in January. According to sources, the AP government is still running on overdraft (OD).
Going into details of the loans borrowed in January, the AP government took part in the securities auction by the Reserve Bank of India (RBI). From the RBI, the AP government secured Rs 1000 crore at an interest rate of 7.71 percent. Apart from this the government took a loan of Rs 557 crore with an interest rate of 7.66 percent and the tenure of this loan repayment is 13 years.
But it’s in the open market that the state government made huge debts worth Rs 4557 crore and through corporations another Rs 5000 crore reached the state’s treasury. Additionally Rs 2700 crore loan was secured from a different corporation. Summing up all these, a total of Rs 12,000 crore debts were made in a single month by the AP government.
There is no end to the debts the AP government continuously makes every month to pay salaries and for the welfare schemes. The Union government recently imposed restrictions on loans and right after the Union Finance Ministry allowed it to secure loans for the last three months of a financial year, the state government utilised this opportunity in a single month.