Andhra Pradesh has taken it to the next level in going for loans in the new financial years. The state government has collected around 12,000 Crore loans in just ten weeks. The government is allowed to go for loans of around 20,000 Crore in this fiscal and the limit is likely to be exhausted in August.
From August, the government will have to keep something as collateral to go for loans. Except for Sand and Liquor, there are no revenue-generating avenues for the state government. According to a report by Andhrajyothy, the government is going to mortgage some assets of the government to get loans.
Some assets in Vishakapatnam and the assets of the R&B department across the state are earmarked to the mortgage. The assets in Vishakapatnam are worth 1,600 Crore and the assets of R&B are 5,000 Crore. The government is planning to pool in at least 5,000 Crore from this mortgage.
The issue may land up in court sooner or later as this is a dangerous move that is likely to push Andhra Pradesh to bankruptcy.Don't MissModi Needs Jagan's Approval Even For That?A section of media supporting YSR Congress seems to be hitting new highs in sycophancy....Don't MissWhat Did Modi Offer Jagan For This Favor?Andhra Pradesh Chief Minister YS Jagan Mohan Reddy toured the National Capital for two days....Don't MissKCR Follows Jagan ModelIt looks like the Chief Ministers of both the Telugu states are competing with each...Don't MissArdha Shathabdham Review - A Crude Caste DramaBOTTOM LINE A Crude Caste Drama OUR RATING 2/5 PLATFORM Aha Video What Is the...Don't MissRRR: NTR and Ram Charan Fans Latest ArgumentAs they say, an idle man's brain is a devil's workshop. With no movie releases,...