Cut in loan limit a slap in govt.’s face: Yanamala
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The Centre’s imposition of a main minimize in the market borrowing by the State was a tight slap in the face of the YSRCP authorities, mentioned TDP politburo member Yanamala Ramakrishnudu.
Incidentally, the Centre’s determination got here shut on the heels of Finance Minister Buggana Rajendranath Reddy’s go to to Delhi, he mentioned.
In a assertion on Thursday, he claimed that the a report on the ‘borrowings by the State government’ offered by the Finance Department for April, 2021 ‘shocked’ the Central authorities officers. “The Centre has fixed a cap on open market borrowings by the State. However, the government is yet to learn its lessons. Andhra Pradesh borrowed ₹17,924 crore in 2020-21 fiscal, which was more than 4 % of the Gross State Domestic Product (GSDP) in the previous year. Another ₹6,000 crore was also taken as debts. Hence, a cap has been fixed on the borrowings, confining it to ₹27,668 crore for 2021-21 fiscal,” he mentioned.
Mr. Ramakrishunudu additional mentioned that the State authorities didn’t reply in the specified style, although FRMB Review Committee headed by N.K. Singh cautioned it in April final 12 months. The panel mentioned if the money owed exceeded 20 % of the GSDP, it might be categorised as a dangerous monetary administration. “Andhra Pradesh’s borrowings 41.46 % of the GSDP, it is 17 % for Telangana. A.P. stands in third place in the list of States with high debt-GSDP ratio. It speaks volumes of the financial mismanagement,” he mentioned.
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