Callous Center, Loans pile up for AP

Andhra Pradesh is suffering from the burden of heavy loans. Central government which was to bridge the revenue deficit of the state for the first year, did not live up to the promise even at the end of the second year. As a result, AP had to go for 14000 Crore Loans till date and is going for the auction of bonds for another 1000 Crore.

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The state is now pinning high hopes on the Union Budget to be table very soon. With no proper help from the center and not able to increase the income, AP is struggling to make both ends meet. The state is resorting to more loans every month even for paying the salaries of employees every month.

Things are not very different even for the surplus budget Telangana. The state until now went for 14000 Crore loans and is requesting Central government to relax FRBM limits so that they can go for more loans. Both the states will go up for fresh loans as they get renewed loan limits in the new financial year coming up.