Debt burden increasing on AP!

The truncated Andhra Pradesh is yet to recover from the bifurcation blues. The state which is suffering from the deficit budget is relying on borrowing money from the open market to meet its expenses month after month. The state had spent Rs 48,043 crore in the last 6 months as a part of its planned and non-planned expenditure. However very little of this money is spent for creation of assets, only Rs 3,000 crore were spend in these six months for creation of assets.

However the finance department of the state had clarified that the overall income of the state was more in the first six months compared to last year’s income in the first six months.But the increase could not aide the increasing expenses of the state and as a result, the state had so far borrowed about 9000 Crore from open market to fund the increasing expenses.

The limit for borrowings in a financial year for AP state is around Rs 20,000 crore. With about 40% limit already exhausted, the state seriously needs the helping hand of the central government to live up. It is known that the Center guaranteed to fill the deficit in the first year budget and the state government had pinned its hopes on the Center now.