Amaravati: According to a section of experts from the financial sector ,increasing number of hand loans are weighing heavy on the Andhra Pradesh state exchequer. The interest being paid on such hand loans taken by the state government has shot up in to hundreds of Crores of rupees and also due to the delays in repaying these loans.
In the past four years the State government has been taking hand loans frequently. The total amount which has been paid in the form of interest is Rs 124.72 crores as per the CAG reports. All the short term loans are also being put to use for revenue spending but not for generation of revenue. In the current economic year Rs 25,452 crores was the loan amount of which Rs 14,127.03 has been put under expenditure. The budget estimates of fiscal defect, revenue deficit are way too huge.
In the 2017–18 financial year, the budget estimate for revenue deficit was -415.80 crores, fiscal deficit was -23,054.44 crores but they turned out to be –16,772.83 and –33,591.92 respectively. This has also exceeded the terms mentioned in the the Fiscal Responsibility and Budget Management Act, 2003 (FRBM) as well, leading to a situation where the number of assets goes down and the number of loans is increase.
In 2017-18 the loan amount taken by the state government is Rs 45,860.75 Crores. Paying interests on the short term loans given by the RBI is the proof of the position of our economic status. It is squandering the public money for inappropriate causes say a few experts from the financial sector.
RBI provides all the states with funds of Rs 1500 crores under the Ways and Means option. Even when the treasury is empty and in emergency situations money will be provided by the RBI which should be paid back within the time frame of 14 days. If the time limit is breached then interests are to be paid. In the erstwhile joint state of Andhra Pradesh Chandrababu Naidu has the credit of taking loans for 230 days in 365 days in a single year , a feat for which only he has the credit to. This leads towards a financial decline of the state and the same thing is being repeated by him now in the bifurcated state of Andhra Pradesh.
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