The other day, Government of India informed that there are 56,000 non-budgetary loans taken by AP Government through its corporations and government owned companies. A majority of these loans were lent by Public Sector Banks and were not shown in the budget.
The Central Government has already entered the scene and has asked the state government to explain this constitutional violation. Meanwhile, Andhrajyothy aired a story which says the non-budgetary loans are not 56,000 Crore but are 71,000 Crore.
The story says there is a trench of another 15,000 Crore Rupees that is taken outside the budget and is yet to come to the Central Government’s radar. In case this is true, the financial condition of Andhra Pradesh is very serious and needs immediate attention.
We will have to see what the Central Government and the RBI does!