While the centre still eludes the state over its special status and the special package promises, Andhra Pradesh is facing a severe crisis with increasing debts to the tune of Rs. 90,000 crore. Before the state bifurcation, Andhra Pradesh had Rs. 1.15 lakh crore debt, which was split between AP and Telangana post bifurcation and AP got ridden with 67,441 crore debt at 58.32 percent based on the states’ population.
In its first year after the state bifurcation, the AP government took loans for Rs. 11,000 crore, taking the total debt to Rs. 78,441 crore in the 2014-2015 financial year. The government had a tough time in reducing the debts due to the state’s schemes like farmers loan waivers, employees’ pay scale revision, various social pension schemes and subsidies.
In the current financial year, the government has spent more than Rs. 16,000 crore to clear the interests to the loans taken over the last decade and this forced the government to take new loans to clear old loans. Already, the AP government has acquired new loans to the tune of 6,000 crore out of the proposed 18,000 crore. With this, the total debt totals to Rs. 84,000 crore and with the addition of foreign loans of nearly Rs. 6,000 crore, AP ends up with a huge debt of Rs. 90,000 crore.
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