Amaravati: The Andhra Pradesh government has borrowed Rs 34,890 crore from the open market. It has submitted proposals to take another Rs 2,000 crore by participating in the securities auction next Tuesday. If this amount is also taken, the open market debt will reach Rs 36,890 crore. Apart from this, it has collected Rs 8,305 crore through Beverages Corporation.
The Department of Expenditure Control in the Union Finance Ministry has approved the borrowing of Rs 43,803 crore from the open market for the first nine months of this financial year. However, the authorities have started efforts for new loans as they have borrowed almost to the limit before the first five months of the deadline were completed.
With this, a total of Rs 45,195 crore will be taken. Along with these, there are loans given by NABARD and the Centre. Apart from this, the State government officials went to Delhi and urged the Central Finance Department to allow another Rs 25,000 crore of loan from the open market. They are trying to get RBI permission to raise another Rs 25,000 crore by auctioning debentures through Beverages Corporation. In the meantime, the issue of Beverages Corporation is a topic of discussion at the Centre.
Also read: SC puts AP govt on notice for diverting State Disaster Management Funds
The Centre has allowed Rs 43,803 crore to be taken from the open market in the first nine months. So far, the loan taken till August 16 is Rs 34,890 crore. At the same time, the Central Finance Department clarified that the loans taken based on diverting the state revenue to the Corporations and pledging the amount are also government debts. A loan of Rs 8,500 crore was taken from the Beverages Corporation in this financial year. To get this, the income from alcohol was shown as collateral.
The State government used to collect VAT on liquor. Reduced that amount. To that extent, the Beverages Corporation has amended the law to enable it to levy and collect duty on its own. Due to this, on the one hand, the income of the state treasury is decreasing. On the other hand, it created an opportunity to get additional debt with the same income.
As clarified by the Union Finance Ministry, this should also be considered a state debt. From that point of view, the state's open market debt limit has already reached five months. Efforts are underway in Delhi to allow new loans. If this situation continues, there are chances of debt becoming unlimited in this financial year.
