According to the CAG report, the Andhra Pradesh government remained in debt for 357 days in 2024-25. A total of Rs 1.72 lakh crore was borrowed for daily expenses, taking the fiscal deficit to 3.75%.
Amravati: The Andhra Pradesh government operated by taking loans almost every day in the year 2024-25. Not just for one or two days, except for 8 days in the entire year, the government spent the remaining 357 days on loans or advances. During this period, a total loan of Rs 1.72 lakh crore was taken. This shocking information has come out from the report of the Comptroller and Auditor General (CAG), which was presented in the Andhra Pradesh Assembly on Friday. This report has come at a time when both the RBI and the Supreme Court have warned the states about the economic impact of guarantee schemes being introduced without thinking.
According to the report, in 2024-25, Andhra government had only 8 days when it was successful in maintaining minimum cash balance without taking any loan or advance from RBI. The government’s fiscal deficit crossed the ‘Fiscal Accountability and Budget Management’ limit (2.7% of state GDP) and reached 3.75%. Due to this, the government had to depend on loans for its daily operations, due to which the interest burden also increased.
The CAG report shows that in 2024, the government took a loan of Rs 42,004 crore using the ‘Special Drawing Facility’ for 71 days and paid interest of Rs 188 crore on it. Apart from this, a loan of Rs 73,897 crore was taken under ‘Ways and Means Advances’ for 179 days, on which interest of Rs 82 crore had to be paid. Not only this, the government also took an overdraft of Rs 56,631 crore for 107 days and paid interest of Rs 32 crore on it.
TDP leaders have given their clarification on this report. He said that the NDA government was formed in the state on June 1, 2024. By then the previous government had already taken a loan of Rs 38,000 crore. We had to take a loan to pay off the burden they left behind.
Some Guarantee Schemes of Andhra Government
- free bus travel for women
- Free bus travel for disabled people
- Three free LPG cylinders a year to eligible families
- Rs 1500 every month to women aged 18 to 59 years
- 1 kg rice for Rs 1 to BPL card holders