A.P in a financial mess

[thunderstorm369]

The days of giving are over. And the pace of borrowing from the centre too is fast reaching maximum limits. The situation is so bad that the state needs to borrow just to service debts on previous debts! A.P now has gone to RBI for sale of government bonds. This is expected to fetch Rs. 2000 crores and th9is will leave the government with a further limit of a mere Rs. 5000 crores. The Centre put a cap for the remaining Rs 2,000 crore as the state's annual Plan is yet to be approved. "With or without Plan approval, we have to allot funds for debt servicing. Anyway the Plan will be approved next week," a senior official said. Meanwhile, the Chief Minister, Mr K. Rosaiah, has decided to send a team of officials led by financial advisor D V Somayajulu to pursue with the Centre the issue of increasing the borrowing limit to Rs 16,000 crore.

http://www.123telugu.com/news/Nov09/AP_financial_mess_abcd_07110901.html

[kingmakers]

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[mba]

AP vadilesi vere state chusukunte better emo anthaaa..