The YSRCP government in Andhra Pradesh led by Chief Minister YS Jaganmohan Reddy is taking loans from banks and financial institutions indiscriminately to fund its cash transfer schemes in the name of Navaratnalu.
The AP government itself resorted to several irregularities to secure loans from banks and financial institutions in violation of FRBM Act.
The Centre on Monday (today) warned AP government against violating FRBM Act to secure additional loans.
The Centre imposed restrictions on loans to be taken by the AP government in the next three years.
The union minister of state for finance made a statement to this effect in Lok Sabha on Monday.
He said that AP government has secured an additional loans Rs 17,924 crore over and above the stipulated limit under FRBM Act.
The Centre asked the AP government to adjust the additional loans in the next three years by taking loans lower than FRMB limit.