AP in top 10 debt ridden states: RBI report
Vijayawada, June 17: The loan burden of Andhra Pradesh State has surpassed beyond limits, Reserve Bank of India report revealed. In a bulletin released on Thursday, the RBI stated that AP is on the top 10 debt ridden States and has precarious debt levels.
According to the RBI, AP has crossed the loan and financial deficit that was determined 15th finance commission for the 2021-21 financial year. The State has given 9% bank guarantees in GSDP, the highest which no other State gave, for off-budget loans. In the first month of the present financial year only, the State government availed the special drawing facility for 25 days and took loans for 21 days.
Telangana, Manipur and Nagaland followed the AP in using this facility.
The AP borrowed Rs 4,000 crore loan from open market. Telangana didn’t take any as the Centre didn’t permitted the State to take loans from open market. Hence, the Telangana government relied on borrowings, OD, special drawing facility.
Meanwhile, the AP government has also used special drawing facility and borrowing along with Rs 4,000 crore loan.