Mounting debts is a huge cause of concern for the people in the state. According to the CAG’s report for the month of January 2021, Andhra Pradesh has topped the charts for the 10th consecutive month for accumulating debt. Among the Southern states (Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana), AP reported the highest borrowing.
According to the latest CAG report, APs debt for the 10 months of the current FY 2020-21 is Rs. 73,912 crores, a whopping 153% of the budget estimate. The next highest borrower is Tamil Nadu, with Rs. 49,844 crore.
|State||Total borrowing in CFY (in crores)||Monthly borrowing (January 2021)(in crores)|
The interest expenditure has also risen. Compared to December 2020 when interest payment was Rs. 1,336 crores, in the month of January 2021 the Reddy government has spent Rs. 1,724 crore in interest alone.
Capital expenditure, however, has not increased on par with borrowings. Capex for the entire fiscal year is Rs. 19,547 crores as of January 2021. While revenue expenditure was Rs. 1,42,285 crore.
While the state borrowed Rs. 46503.21 crores till January last year, the borrowing increased to Rs. 73912.91 crores this January. AP is one of the top 5 states in the country with the highest amount of borrowings from the open markets.
According to the bulletin released by RBI, the state borrowed Rs. 44,250 crores from the open markets between April to December 2020. The state also exceeded its borrowings through Special Drawing Rights and Over Drafts.