Central Government Tightens Screws on Jagan GovernmentUnion Government has finally shifted its focus on the financial indiscipline of Andhra Pradesh. The State Government is trying to get a 2000 Crore loan to pay the Salaries and pensions of the Government employees this month.

The RBI has not allowed it and asked the State Government to get a clearance from the Union Government. When the state approached the Center, it has got a rude shock. The Center has written to the state that it can not borrow more than 42,472 Crore in 2021-22.

It also clarified that 27,589 Crore should go towards Capital Expenditure which means needs to be spent on infrastructure creation. That means only 14,883 Crore can be used on freebies. The State Government has borrowed more than 80,000 Crore last year.

The Central Government also asked the State Government to send a detailed report of its finances, loans, the financial position of discoms, etc. Only after verifying the report, we will allow the loans through RBI, the center told the state government.