Andhra Pradesh In Debt Trap

Wed Jun 26 2019 13:41:19 GMT+0530 (IST)

The debt of Andhra Pradesh has risen to Rs 2,49,435 crore in the financial year 2018-19. In response to the query raised by Congress Rajya Sabha MP KVP Ramachandra Rao, Nirmala Sitaraman issued a statement in this regard in the Upper House.



By March 2015, The debt of AP increased to Rs 1,48,743 crore. Burden on the state went up to Rs 2,01,314 crore by March 2017 and that's a 35 percent growth. For Rs 2,49,435 crore debt in 2019, AP Government is paying Rs 15,077 crore interest. 
 
Union Finance Minister informed AP Government was offered permission to avail loan of Rs 8,256 crore by Centre inspite of FRBM Limitations. She told Union Government released Rs 7,891 crore to AP in three years as per AP Reorganisation Act 2014.

In the past five years, There was hardly any development in Andhra Pradesh. Nobody knows how the money borrowed from various financial institutions has been used. The burden of the financial blunders will be on the current government. How will the New CM handle crisis?