Andhra Pradesh is starting the new financial year with debt. With massive efforts, it has received permission from the Center to take a loan of Rs.3,000 crore.
Usually, at the beginning of a new financial year, it is rare for loans to be approved so quickly from the Center. But CM Jagan Mohan Reddy himself requested the Finance Minister in the recent Delhi tour and obtained the necessary permission.
A loan of Rs.3,000 crore will be taken in the auction of securities conducted by the Reserve Bank next Wednesday. It is interesting to note no other state in the country is taking loans and AP is the only state participating in the auction on that day.
A loan of Rs.1000 crores to be repaid with a time limit of six years, Rs.1000 crores to be paid with a time limit of nine years and another thousand crores to be paid with a time limit of ten years is being raised.
When the state can not manage the finances in the first month of the new financial year, we can expect how the rest of the year is going to be.
