Center Reveals AP ‘Out Of Budget’ Loans!

According to a report by Andhrajyothy, Andhra Pradesh’s bad financial management is revealed once again. The Reports say Central Government itself has confirmed that the government has incurred huge non-budgetary debts (not shown in the budget). From April 1st, 2019, in the name of corporations and government-owned companies, AP has borrowed a whopping Rs 56,076 crore.

The Center has given this answer to a question asked by TDP MP Kanakamedala Ravindra Kumar in the Rajya Sabha. It is interesting to note that AP has borrowed the most from various Public Sector banks. It has borrowed over Rs 15,000 crore from SBI. Bank of Baroda has lent over Rs 9,000 crore.

Bank of India has lent another Rs. 7,000 crores. UBI, Punjab National Bank, and Indian Bank have lent Rs. 7,000 Crore, Rs. 6,800 crores, Rs. 5,700 crore and Rs. 4,000 crore respectively. The central government already wrote a letter to AP Government saying that such borrowings are violations of the provisions in the constitution.

We will have to see what the center does now given that a situation like a financial emergency is in Andhra Pradesh.