AP Govt Exhausts 68% of its Annual Debt Target in Just 3 Months

Andhra Pradesh Government is leading the state into debt trap with Populist schemes. The State Government went on to borrow at whopping 33,294 Crore in the first Quarter of 2020-21. This is 68% of the debt limit of the state for the whole year.

The State Government had almost exhausted two-thirds of the total debt planned for the year. In this three months, the Government had to pool resources for its 60% expenditure through the debts. The Revenue Deficit as a result is whopping 27,067 Crore.

While the Government spent 54,335 Crore in these three months, only 6,193 Crore is Capital Expenditure which is the amount spent on creating longterm assets and infrastructure. The remaining went to the Salaries, Pensions, and other Welfare Schemes which will give no returns.

Things will be even difficult for the state as the Central Government is refusing to reimburse GST losses to the state in the name of ‘Act of God’ due to the Coronavirus Pandemic. The remaining three quarters of the year are going to be very tough for the state government.