The new financial year has started and the debt limits were refreshed. Jagan Government has become like a bird out of the cage.
It has been just eleven days into the new financial year and the Andhra Pradesh government had already borrowed 4,000 Crore rupees from open markets.
In the RBI’s securities auction last Thursday and this Monday, the state borrowed 2,000 Crore Rupees on each occasion.
Previously, loans used to be given with five years repayment schedule but it has been relaxed to 20 years tenure. So, the Jagan government is borrowing without a second thought.
The interest on this amount is also very high ranging from 7.29% to 7.52%.
Meanwhile, the state is pushing the central government to allow to borrow 74,000 Crore this financial year.
The state sent a proposal of 5,000 Crore to RBI in April. But the state had already borrowed 4,000 Crore in the first eleven days itself.