RBI Securities Auction happens every Tuesday for the State Government to raise loans from the Open Market. To participate in the auction every Tuesday, the state governments have to place an intent by Friday.
Jagan Mohan Reddy’s Government in the last five years has been a regular attendee at this auction every week. But then, the Chandrababu Naidu Government surprised everyone by not participating in this auction for three weeks on the trot.
Chandrababu Naidu Government did not participate in the auction for the last two Tuesdays and did not place intend for the coming Tuesday as well. This is a rare feat for the state government in recent years.
For the first nine months of this financial year, the Andhra Pradesh Government was allowed to take 47,000 Crore loans from the Open Market.
Between April 1st to June 4th (Results Day), there were ten RBI auctions. Jagan Government participated in eight of them and took loans worth 25,000 Crore.
After the formation of Chandrababu Naidu’s Government, there were ten such auctions (including the one on coming Tuesday), and the Government took loans only in five auctions. Loans worth 14,000 Crore were taken.
This only implies that Chandrababu Naidu is trying to maintain some financial discipline. That is actually good for the state which is completely debt-ridden due to Jagan’s misrule.
