Andhra Pradesh Government has started creating new records in taking loans ever since YS Jagan Mohan Reddy assumed power. The Central Government has allowed 42,472 Crores loan for 2021-22 but has decreased it to 27,688 crores after the Jagan Government’s out of budget loans were revealed.
To date, the Government has taken 25,751 Crores. For four months from September to December, the Central Government has allowed 10,500 Crore loans. But then, the state government has borrowed 5000 Crore in September itself. The Government may exhaust the remaining limit in October.
The Government is hoping that the Central Government would increase the limit once again when needed since a financial emergency in Andhra Pradesh means bad image for the country internationally and also bad credit ratings for the entire country.
So, the state officials are hoping that Narendra Modi Government will not allow Andhra Pradesh to slip into trouble. But then, the question is how long can this go with out any restraint.