Jagan Government is continuing with its bad financial management. On one hand, the government is incurring huge debts and on the other hand, it is also availing the Over Draft (OD) facility with the RBI.
Although the CAG has already warned many times that to avoid loans and the burden of interest by not using overdrafts, ways and means, and special drawing facilities, the government is not in a position to care.
In the first week of this month, the state government participated in the securities auction conducted by the Reserve Bank and took a loan of 3,000 crores.
On the other hand, on the 3rd of this month, Rs.3,273 crore was utilized in the form of OD with the RBI. It means that Rs.6,273 crores of loan was utilized in the first week of July itself.
The funds utilized in the form of OD shall also incur interest as prescribed by RBI but then it has to be repaid in 21 days. On July 11th, the government is going to take another loan of 2,000 crores.
The Central Government allowed 30,275 Crores of loans in the first nine months of this financial year. The state exhausted every thing but 3,000 Crore in just over three months. The remaining 3,000 Crore will be borrowed in the next one week or 10 days and then, the state will liaison in Delhi for an extension as always.
