Andhra Pradesh finances slips to 15 years back!

The financial position of Andhra Pradesh had slipped to 15 years back after the state government resorted to Overdraft facility. The state used to use the ‘Ways and Means’ and ‘Over draft’ facilities some 15 years back, but the condition stabilized later. But the state division had pushed the state to 15 years back now.

The state till Thursday had taken 1440 Crore by Ways and Means and 2219.76 Crore by Overdraft. The Central government which should fund the first year deficit of the state remained mute even as the financial year is ending in four days. Currently the state has gone overdraft for second phase Runa Mafi and there are 4000 Crore pending bills as well.

If the center do not come to the rescue of Andhra Pradesh, the state will have to resort to Overdraft for salaries too. The revenue deficit of AP in 2014-15 is arrived at 14242 Crore. Money received through Overdraft facility will attract a huge interest of 9.5 percent.