Andhra Pradesh Chief Minister N Chandrababu Naidu is often heard saying that despite extreme financial crisis in the state, TDP is implementing the welfare programmes successfully. The financial crisis caused by bifurcation of the state continuous to haunt, as the debt burden is increasing exponentially with each month passing. Within just two months, the government has borrowed Rs 10,500 crore.
As per the budget provisions for the financial year 2017-18, the total amount Rs 26,819 crore loans can be taken of which Rs 21,528 crores have already been taken by the second quarter.
The state government could borrow maximum of Rs 5,500 crores in the second quarter (July-September) as per the reports to the Reserve Bank of India. However, in July Rs 3000 crores, in August Rs 4500 crores and now in September Rs 3000crore loans were taken accounting to Rs 10500 crore to bridge the gap between the needs and the revenue.
There are various reasons for loaning the amount – primarily due to failure in securing grants from Centre and funds for central government’s projects apart from the change in tax regime GST. If this scenario continues, the provisions of FRBM act will be violated and the credit score of the state will be impacted. It’s time for the government to introspect before fully falling into the debt-trap.
