CM Jagan All Set To Borrow Another Rs 3,000 Crs!

The Andhra Pradesh government, led by CM Jagan, has been continuing to accumulate debt, despite recent financial support from the central government. In the latest development, the AP government has decided to participate in the bonds auction conducted by the Reserve Bank of India (RBI). They are seeking an indent of Rs 3,000 crore in the upcoming auction scheduled for Tuesday.

Up until now, the AP government has borrowed Rs 15,500 crore through RBI’s security bonds auction, resulting in a total debt of Rs 18,500 crore within the limits set by the Fiscal Responsibility and Budget Management (FRBM) Act.

However, with this additional borrowing, the AP government’s borrowing limit has decreased to Rs 12,000 crore, which is significantly lower. The state government still has approximately nine months remaining in the financial year.

This situation is surprising, considering the recent financial assistance provided by the Government of India. Just last week, the central government approved Rs 10,000 crore for addressing the revenue deficit in Andhra Pradesh. Additionally, the Union Jal Shakti Ministry recently sanctioned Rs 17,144 crore for the construction of the Polavaram project, bringing the total funds allocated to the state’s treasury to nearly Rs 27,000 crore.

Furthermore, with the upcoming elections next year, the AP government is expected to allocate more funds to Chief Minister YS Jagan Reddy’s welfare schemes, known as NavaRatnalu.