Will Modi Get Moved by AP’s Apathy?

Central Government which promised to bear all the expense of World Class Amaravati just restricted itself to some 2500 Crore. Now it is up to Chandrababu to raise the necessary funds for the Capital and obviously, it has to rely on loans for this expense.

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The state government has written a letter to the center to exempt Capital expenses from its FRBM limits so that it will have a free arm. The state government reminded the Center how Andhra Pradesh is a peculiar situation to build the capital from the scratch and at the same time with a deficit ridden economy.

The State Government has asked the center to recognize the Special Case of Andhra Pradesh which is not comparable to any other state in the country and extend FRBM Limit by 0.5% just to meet the expenses of the Capital Construction.

According to present FRBM act that the borrowing limit is 3% of the Gross State Domestic Product (GSDP). Now, the state government wants to increase the borrowing limit from 3% to 3.5%. This will ensure that the state can go for 3000 Crore of additional loans. At present, the borrowing limit of the state is Rs 18,000 crore per year.