Andhra Pradesh Government is going to take another loan of 2000 Crore coming Tuesday in RBI Securities auction.
Central Government has allowed 43,803 Crores loans from open markets for a period of nine months in this fiscal. Andhra Pradesh Government has lapsed the limit in just five months.
With the 8,305 Crore loan from Beverages corporation, loans from NABARD, and the Central Government, AP’s loans will be 46,803 Crore by this month-end.
36,890 Crore of this is from the RBI securities auction. The Government already wrote to Central Government to allow another 25,000 Crore from the debentures of Beverages Corporation.
Despite many complaints, Central Government is not taking any steps to control the loans worsening the financial position of Andhra Pradesh.
The state government is also bringing loans mortgaging future revenues which will impact the state in the long term.
This culture may become worse with elections fast approaching and the Government will focus more on freebies to get votes.