The loan discussion that the Andhra Pradesh coalition government has been burdened with is getting hot. Coalition leaders, since assuming office on June 12, have not been shy about criticizing the debt left behind by the Jagan government. As a result of this scrutiny, white papers have been released to try to make sense of the state’s financial situation.
The coalition has really managed to fulfill the expectations of the masses by doubling the pension amount from Rs 3,000 to Rs 4,000. The welfare schemes of the government are being delivered slowly, but the Diwali will see gas cylinder subsidies coming into life.
Recently, the Central Government had sanctioned ₹7,000 crores in addition to the existing borrowing permitted during the current financial year to the tune of ₹54,000 crores. Additionally, it has also been able to raise ₹3,000 crores through security auctions from the Reserve Bank, which sums up to ₹50,000 crores for such auctions. In just four months, a coalition government has added on its books an eye-stopping ₹59,000 crores of debt-which it now promises to add more in future auctions.
The previous government of Chandrababu Naidu has also resorted to heavy borrowing; it has borrowed ₹5,000 crores through Markfed, ₹2,000 crores from the Civil Supplies Department, and ₹1,000 crores through the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). In the run-up to the full budget in the assembly on November 11, financial governance, spending, and what follows as welfare programs is being debated with attention both by political camps and the general public.
