In the RBI Securities auction on Tuesday, Andhra Pradesh State Government has borrowed 2000 Crore Rupees. One trench of 1000 Crore is borrowed at 7.14% interest for 20 years and another trench of 1000 Crore is borrowed at 7.13% for 15 years.
The interest payments for this 2,000 Crore will start from next month itself. The Government has hoped to pay for contracts, outsourcing, corporations, and other Government employees with this amount. But as soon as the money got credited, RBI has taken the amount towards the Overdraft account of the state leaving the Government empty-handed.
This has been a norm for the state government in recent times – Taking loans to pay up loans. Luckily, the state government has got a 1,438 Crore Rupees of Grant towards the Revenue deficit. This amount will help the state government to tide over the crisis to some extent.
We are almost into the half of the month and the government is still struggling to pay salaries.
