Unstoppable: Jagan Seeks 4000 Cr Debt On May 14th

The opposition parties in Andhra Pradesh have been heavily criticising the YCP government for going overboard with their loan seeking policy. There are several concerns about the fiscal condition of the state finances as the coffers are dried up and the state is running largely on borrowed money.

But despite the outcry, the Jagan government is still persisting with the loan-heavy spending. In a new update, the YSR Congress government is set to auction off Rs 4000 crore worth state securities.

Once these securities are auctioned off, the government will be raising another Rs 4000 crores in loans which come with added interest charges.

While other states like Telangana, Jammu Kashmir, and Punjab are auctioning securities worth Rs 1000, 1000, and 500 Cr respectively, AP alone is raising Rs 4000 crore and that has a story in itself.

The auction will be conducted on the Reserve Bank of India Core Banking Solution (EKuber) system on May 14, 2024 (Tuesday). In case YCP loses the election, this auction would leave the incoming government with additional debt of Rs 4000 crore plus interests.