TS ignores debt inherited from AP!

Telangana government has tabled its first ever budget in the newest state couple of days ago. The budget which the ruling party calls it a people’s budget do not speak a word about the debts inherited from United Andhra Pradesh after the state division.

United Andhra Pradesh had a total debt burden of Rs.1.72 lakh crore as on appointed day June 2 and Telangana will inherit a share of over 70000 Crores from it according to population basis. However the budget makes no mention about the debt amount as the state claims the Government of India is yet to divide the debts.

While the present Andhra Pradesh government is paying debt servicing of about Rs.155 crore for both the States, Telangana government ignores it for the time being assuring that the State would reimburse the amount paid by Andhra Pradesh after the formal apportionment. On the other side, it is not yet clear how the debts raised on external aided projects will be divided – based on location of the project or in the ratio of population.