Andhra Pradesh Government has taken loans worth 33,617 Crore in this financial year already. Only in November, the Government has taken a loan worth 8,513 Crore. We have four more months in this financial year but the State Government can only borrow only a little over 3,000 Crore this year. The State Government may exhaust this limit in this month itself.
Meanwhile, the State Government is announcing freebies to various sections like there is no tomorrow. Jagan Mohan Reddy already announced the ambitious Amma Vodi Scheme from January which gives 15000 Rupees to the mother of every school-going kid. The scheme would need huge financial resources.
In the wake of this, the State Government has written to the Central Government to relax the FRBM norms and allow 15,000 Crore more loans in this financial year. It has to be seen if the Center will allow given that the BJP does not want to give a rope for Jagan to emerge.
If they do not permit, it may be difficult for the state government even to take care of the salaries and pensions in the next few months.
