Thoughtless Populism is taking a severe toll on the finances of Andhra Pradesh. The revenues of the state increased this year in comparison to that in the last year and even then, the Government resorted to massive loans.
Until November 19-20, AP’s revenues were at 63,000 Crore. This year until November, the revenues were at 66,708.47 Crore despite the COVID-19 effect. Even then, the revenues are not sufficient for the state government.
The Government had resorted to a whopping 73,811.85 Crore loans from April to November this year. That is obviously more than the state revenue. During the same period last year, the loans were only 34,996.29 Crore. That means more than a 100% increase.
By November, the government already breached the one-year loan target and it is likely to make loans double the estimate in the budget by the end of this fiscal. “This is the result of going after mindless populism. Andhra Pradesh will go bankrupt if the situation continues. Center should immediately take a stock of the situation or AP will end up as another Bimaru state,” a financial expert analyzes the current situation.