The government of Andhra Pradesh with its huge debt has risen to Rs 3,73,140 crore by the end of November 2020. Recent CAG accounts have shown this from April to November 2020. A total of Rs. 73,811.85 was borrowed from various sources as opposed to the annual target of Rs 48,295.59 crore for the whole year.
In November alone, the government of Andhra Pradesh borrowed Rs 13,001 crore to pay the free bill.
Contrary to the amount targeted at Rs 18,434.15 for the full financial year, the lost amount amounted to Rs 57,925.47 crore by the end of November itself.
The national government has borrowed Rs 9226.375 crore on average per month so far for the 2020-21 financial year.
The current borrowing situation has shown that the national government can collect at least a loan of more than Rs 30,000 crore by the end of March 2021, taking a total loan of more than 1.04 lakh rupees for the 2020-21 financial year, sources at the Treasury said.
The debt of the Andhra Pradesh was Rs 97,000 crore during the bifurcation in June 2014. In five years (until 2019 March), it reached Rs 2,58,928 crore.
From April 2019 to November 2020, Rs 1,14,212.81 crore is considered a loan from banks and other sources, with Rs 1,06,866.25 crore protected by Y S Jagan Mohan Reddy government as of June 2019, sources said.
In the first eight months of the current financial year, the national government spent Rs 70,082.90 crore, almost all of which went to the many free programs of the ruling YSR Congress.
Earlier, Jaganmohan Reddy’s government had levied taxes and cut nearly Rs 21,000 million from the people, citing a lack of revenue due to Covid’s closure.
With the closure of the first quarter of finance, the country’s revenue touched Rs 46,589 crore in November, about Rs 4,500 crore short compared to the same period last year.
The state has also received R8 million in grants from the Center compared to the corresponding period.
The government has created a new business called State Development Corporation specifically to collect loans and has so far received R10 billion from SBI, Canara Bank NSE 1.04% and Punjab National Bank NSE 0.14%, additional funding from the Department of Finance has been added.
Officials are waiting for SBI to release another $ 3,000 loan as another free cycle begins with a Rs 6,500 crore Amma Vodi program where more than 43 lakh mothers will be paid Rs 15,000 each for sending their children to school.
However, only R14,000 will be paid to mothers as the government will deduct Rs1000 towards the Toilets Development Fund.
The IAS Chief executive said that the way things are going reminds him of a Telugu movie where they were shown while they were training at the Lal Bahadur Shastri National Academy of Administration. It’s like Appu Chesi .. which means that you live in debt.
Senior officials have indicated that the state will need to disburse up to Rs 35,000 crore per annum from the following funds only on interest on existing loans.
A senior manager said that If they look at their resources, then the Central and outbound grants in terms of salaries, pensions and various doles, they will need to increase the loans even on debt use. That’s what one calls as a common debt trap.
Former Finance Minister Yanamala Ramakrishnudu has expressed concern about the state’s financial situation as the budget deficit would affect 1,10,320 million.
Yanmala said that Over the past 19 months, the government has borrowed 1.5 million pounds without imposing a tax burden of R5 75 000 crore.
This, despite a six per cent increase in revenue in the first six months of the current fund.
The AP has now become a state with high borrowing and low development as a result of Jaganmohan Reddy’s ‘opposite policies’, the Opposition Leader in the Legislative Council said.