Sri Lanka is currently facing its worst economic crisis in history. In a high-level meeting of Prime Minister Narendra Modi with secretaries of the central government earlier this month, it was mentioned that several states are heading in the same direction.
They told the Prime Minister some states may become just like Sri Lanks if they do not discontinue freebies and manage their finances better.
Punjab, Bihar, Rajasthan, Andhra, and UP are the states with the worst debt-to-GSDP ratios. AP is ranked fourth in the list but the actual condition is more serious than it appears.
The list has been prepared in accordance with the state’s official numbers. But the debts are much higher if we add corporation loans, actual numbers, and others.
It is known to our readers that the Andhra Pradesh government is fudging numbers to get more loans. The central government itself has mentioned that recently in Parliament.
If these numbers are taken into consideration, Andhra Pradesh will be ranked Number one in this list and the condition will be much worse than Punjab’s.
According to the financial experts, Andhra Pradesh’s debt maybe around 7.77 Lakh Crores by the end of 2021-22.
The government has stopped repaying the loans from the last three years and is keeping the bills of contractors pending on a large scale.
In case the freebies are not stopped and financial discipline is not maintained, Sri Lanka-like crisis will be imminent.
