Andhra Pradesh’s coffers are bearing a bare look post the bifurcation due to the deficit budget inherited. A not so cooperative center is adding to its woes. Further the state is being burdened the loans taken in the United State. There are loans amounting to 1,48,060.22 Crore in United State.
These loans are on the name of AP and since the liabilities are not divided, AP is paying interest for the loans of Telangana too. Last year, they have paid 1200 Crore as interest and is paying 62 Crore per month as interests.
Finally center had given a direction to solve the issue. It asked both the states to divide the liabilities in population ratio. However this direction is against AP’s stance. AP is asking to divide assets in population ratio in case the loans are divided as such. We will have to see what stance the states officially take on the center’s direction.
