Andhra Pradesh seems to be getting into a debt trap. The state is ranked fourth in the country when it comes to mobilizing loans from open markets. This is for the period April to December 2020, wherein AP has gone for a whopping 44,250 Crores.
Telangana is ranked sixth on the list with 36,354 Crores. If observe the first three, they are cash-rich states like Maharashtra and Tamil Nadu which are big-budget states, and their borrowings are well within their fiscal limits. Andhra Pradesh is in the red zone.
These are the numbers revealed by the Reserve Bank of India (RBI). In December, the government used Special Drawing Facility for 30 days, Ways and means for 26 days, and Overdraft facility for three days. All this means nothing but fiscal indiscipline and massive loans.
In the 2019-20 Budget, the first year in Jagan’s Government, the revenue shortfall of the financial year 2018-19 i.e. the last year of Chandrababu Government – stood at 11,654 Crore. In less than two years, the shortfall has increased to 54065 crores which means it has increased five times. Very soon, Andhra Pradesh will inch towards financial bankruptcy if the Jagan Government does not wake up at least now.