RBI’s securities auction happens every Tuesday. Jagan Government is on the verge of creating a new record of using this facility almost every Tuesday for getting new loans.
The coming Tuesday, Jagan Government will go for a 2000 Crore loan. But this amount will be deposited to the RBI account for already taken ways and means.
Even after the 2,000 Crore deposit, Jagan Government owes another 700 Crore Rupees to the RBI which will be adjusted in another loan.
This year, the government has taken a whopping 46,000 Crore loans through these auctions at RBI and that too, at the highest interest rates.
No other state goes to RBI auction as frequently as AP. Also, this is the highest amount of loans taken through RBI in the history of Andhra Pradesh including the erstwhile Andhra Pradesh.
With the loans and own revenues, the Government may have spent around 2 Lakh Crore Rupees this year already and that too without any big projects or infrastructure development.
Most of this money is going to the payment of salaries, pensions, and freebies.