Cash strapped AP to sell Securities for funds!

Andhra Pradesh is staring at empty coffers after the bifurcation blues had it severely. It is confirmed that the state can not even pay the salaries to its employees in February first week unless Center helps it. While the Modi’s government remained tight lipped on the help, Andhra Pradesh government started its own trials to pool in funds.

The state government is planning to sell Andhra Pradesh Securities to the extent of 1000 Crores. These securities will be for 10 years duration. The auction of these securities will take place on 27th of this month in Mumbai by Reserve Bank of India.

Andhra Pradesh has inherited a deficit budget from the state budget. There is a deficit of 15600 Crore in the first budget put up for 10 months after the division. According to the Andhra Pradesh Reorganization Act, this deficit has to be borne by the Central government. But so far a single penny did not come.