Central Government has written letters to a few states in the country which are said to be taking loans more than their permissible limits. Andhra Pradesh is also on the list.
The center has sent a questionnaire like – “What are the total loans taken so far? Details of loans taken from the open market, details of loans from central institutions, PF and other deposits, and funds used from small savings, etc”.
Basically, the center has asked for complete details of all liabilities of the state.
The numbers submitted by the state will be audited and only then, new loans will be allowed.
There are doubts for a long time that the Jagan government is fudging numbers to take more loans. The Union government itself has clarified it for a question in the parliament.
If that is proven, the state government will be in deep trouble and the loans allowed for this year will be decreased drastically.
That means the state government should cut down the allocations for various welfare schemes.
As per financial experts, Andhra Pradesh’s loans have reached 7.77 Lakh Crore for the year ending 2021-22. Around half of them were borrowed in the last three years.
