Andhra Pradesh government is sinking into the quagmire of loans.
The government’s focus is only on loans for freebies with no thought about asset creation and infrastructure development.
The state government had raised loans worth Rs 40,190 Crore in the span of just four months in the financial year 2022-23.
These are the loans only from the auction of bonds at RBI and liquor bonds.
8,300 Crore of this is raised through the auction of liquor bonds by mortgaging future revenues of liquor sales.
All these loans are at a very high interest ranging from 7.29% to 10.45%.
The data of remaining loans such as EAP debt, corporations debt, etc is not available.
If all of them are added as well, the numbers will be scary.
It is to be noted that the allowed debt to AP for FY 2022-23 as per FRBM act is just around 28,000 Crores.