AP Borrows Rs 3,000 Crs, RBI Took Back 2000 Crs!

The first week of every month is a nightmare for the YCP government. Having gone down into a deep financial crisis, the YCP government is unable to pay salaries for employees with the treasury being absolutely nil. For the last many months, the YCP government has been in overdraft (OD) and every month, it looks at the Reserve Bank of India (RBI) for debts.

Yet again the YCP government borrowed money from the RBI. According to reports, the AP government loaned Rs 3000 crore by selling security bonds to RBI but ironically only Rs 1000 crore was credited in state’s treasury. The rest of the money i.e, Rs 2000 crore returned to RBI’s exchequer on previous OD limits.

But this Rs 1000 crore is insufficient for the AP government as it needs another Rs 4000 crore for salaries and pensions for employees and beneficiaries respectively. With only Rs 1000 crore touching the treasury, the state government is searching for debts in new ways.

This has been happening and is bound to happen over the course of the next many months to come. It appears that the YCP government has not learned about its previous spendings and allocations of funds to appropriate initiatives that need immediate attention.