Andhra Pradesh Government is in a severe financial mess. There are predictions that the state is heading towards a financial emergency. At this juncture, Banks and other financial institutions are worried about the money they have already lent to the Government.
And now, the State Bank of India has rejected the Andhra Pradesh government’s’ overdraft’ request for implementing the Centrally Sponsored Schemes (CSS) in the state. With empty coffers staring at it, the state government has sought the overdraft of 6,500 Crore Rupees to be used as working capital.
The state government does not have its share of money for the implementation of the Centrally Sponsored Schemes (CSS) in the state. If the state’s share is not deposited in the required time, the central funds for these schemes will go lapse. So, the Government is trying for an overdraft loan.
This may be the first time in the history of Andhra Pradesh that a bank has rejected the Government’s loan or overdraft application.
