The Andhra Pradesh Government had borrowed 2000 Crore on Tuesday at the RBI Securities auction. 1000 Crore has been borrowed at 8.04% for a period of 20 years and another 1000 Crore at the same interest rate for a period of 15 years.
In this fiscal, the government already borrowed 17,890 Crores in Securities auctions. Also, the interest rate is the highest among all the states since AP’s credit score is not good.
The central government allowed 28,000 Crore loans for AP for this entire year.
It’s been only two and a half months into the new financial year and almost 64% of the limit has been exhausted.
In fact, the state has borrowed a whopping 9,500 Crore in just one month and 4,000 Crore already this month.
The entire limit is likely to be completed in two-three months and the state government will start putting pressure on the central government for more loans from then.
The state government wants the limit to be increased to 61,000 Crore per year.
This is a fine example of how Andhra Pradesh is solely running on open market borrowings.
