The Andhra Pradesh government led by Y S Jagan Mohan Reddy continues to make more debts in order to pay salaries to the employees and pensions to the pensioners.
This time it has got a debt of another 3500 crores from the Reserve Bank of India through the auction of security bonds. RBI has granted this by taking into consideration of five interest slabs. However, as A.P state has crossed the overdue limit, the RBI will deduct 1500 crores from the sanctioned 3500 crores. So the state government will be getting only 2000 crores. The governments will use this money to pay salaries and pensions.
The state government seems to rely upon the debts to pay salaries for every month and this is definitely an alarming situation where the state government has to think about generating more revenue from alternate methods as well. No matter which party is ruling or will come to power, they have to keep in mind the budget allocated for the welfare schemes and the revenue of the state. As per the finance department calculations, it is heard that 30 percent of the state’s total revenue is being paid for debts. It is estimated that a total of 9500 crores have been taken as debt by the state government in the last 40 days.