Andhra Pradesh became the largest borrower in the last financial year in the form of Special Drawing Facility (SDF), Ways and Means, Advances and Overdrafts to meet short-term financial needs.
According to the latest data released by Investment Information, Credit Rating India Limited (ICRA), the AP government has utilized 305 days of Special Drawing Facility, 283 days of Ways and Means (WMA) and 146 days of Overdraft facility for the financial year 2021-22.
No other state in the country has been using this facility for so many days. It is followed by Telangana in second place. Manipur came in third.
Economists estimate that the more these facilities are used, the more alarming the state’s financial situation will be.
When the revenue to the state governments does not meet the day-to-day needs, they borrow at the RBI for a short period of time through any of these three facilities.
That means Andhra Pradesh Government could not meet its day-to-day needs for almost like the entire year. This only indicates the bad financial condition of the state thanks to over focus on freebies without revenue generation.
