Amaravati: Center allows state government to take Rs 10,500 crore
Amaravati: Center allows state government to take Rs 10,500 crore
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Amaravati: With the efforts of Andhra Pradesh Chief Minister YS Jagan Mohan Reddy and Finance Minister Bugna Rajendranath Reddy, the Department of Expenditure of the Union Finance Ministry has sent a communiqué to the Reserve Bank of India to allow the Andhra Pradesh government to borrow an additional market borrowing of Rs 10,500 crore. Used to be. The letter was sent after Bugna's visit to Delhi a few days back. In a conversation with Union Finance Minister Nirmala Sitharaman, the minister is said to have explained the state's financial position as well as its reasons. He is also said to have detailed the welfare measures adopted by the government to help the marginalized sections deal with the Covid-19 impact.

The state has already exceeded the borrowing limit under the Fiscal Responsibility and Budget Management Act for nine months. Recently, the Center has cut the borrowing limit of the state by about 35 per cent due to financial indiscipline. The Center had issued an order prohibiting the state from borrowing Rs 27,668 crore from the open market. The Center had asked the state to furnish complete details of loans already borrowed in the last three years. The details furnished by the state showed that the government has already crossed the limit of around Rs 18,000 crore. Apart from this, the government also raised Rs 6,000 crore from various sources. By reducing these amounts from the previous limit of Rs 42,472 crore, the Center reduced the amount to the extent of additional loans.

As per the CAG report, by the end of November 2020, the gross debt burden of the AP government has increased to Rs 3,73,140 crore. The latest accounts showed that from April to November 2020, the state borrowed Rs 73,811.85 crore from various sources against the annual target of Rs 48,295.59 crore in the previous year.

 

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