The AP Government’s profligacy and indiscriminate borrowings are now the talk of the town. The Government is borrowing to sustain its vote-catching welfare schemes. This is now crossing all norms of economic and financial sustainability. The AP Government is ignoring the warnings from financial experts about the impending economic doom in the state.
If the total borrowings of the government, including the pre-bifurcation period stand at Rs3. 14 lakh crores, the total borrowings of the AP government within three years after coming to power of YS Jagan Mohan Reddy is a staggering Rs 3.60 lakh crore. Sadly, these borrowings were not spent on any infrastructure development but on sustaining the welfare schemes.
According to official sources, the government secured loans to a tune of Rs 229317.60 crore from STLs. It got Rs 1500.10 crore from compensation bonds. Rs 10158.40 crore were taken from NSSF. Another Rs 41.90 crore was taken from the LIC. The other organizations that have lent money to AP are: Nabard (Rs 6800.40 crore), NCDC (Rs 99.40 crore), Central Government (Rs 21711.80 crore) and PF (Rs 22878 crore).
In addition, Rs 31.40.40 crore were secured from Reserve Fund, Rs 62745.40 crore from Deposit advances and Rs 50 crore from Contingency fund. At this rate, the state would go bankrupt soon, warn financial experts. They suggest that the state government should take immediate corrective steps.
