Andhra Pradesh Government has gone for another Rs 2,000 Crore Rupees loans in the securities bonds auction at the RBI today.
The government has agreed to pay 8% interest on this amount.
This is the highest interest paid by any state in this auction.
The interest rate is the highest among all the states since AP’s credit score is not good.
The state government has so far taken around 30,000 Crore loans this year. We are not even half done with the new financial year.
Going to the RBI securities auction every Friday and taking a loan of a minimum of 2000 Crore has become a norm for Jagan Government.
What makes it more worse is spending the money on freebies with zero investments in improving the infrastructure and assets.
For an instance, roads in Andhra Pradesh are in pathetic condition and we are into the rainy season, just imagine the plight of the citizens for the next few months.