The YSRCP government in Andhra Pradesh continues to rely on loans to run the show.
The government is taking loans to pay salaries, pensions for employees, to fund Navaratnalu schemes and to take up irrigation projects etc.
The AP government has sought Centre’s permission to raise Rs 20,000 crore loans in the first nine months of this fiscal (2021-22 April to December) through auction of State Development Bonds (SDBs).
The Centre gave its approval to this effect. With this, the Jagan government has decided to raise Rs 12,000 crore loans in the first three months itself (April-June).
Of this, the government already raised Rs 2,000 crore in April and Rs 4,000 crore in the first two weeks of May. The government has decided to raise another Rs 6,000 crore by June-end.
In last fiscal, the AP government raised Rs 15,153 crore in the first nine months. This year, it has decided to raise Rs 20,000 crore.
The latest CAG report had raised serious concern over AP government’s increasing debt burden year after year.