Andhra Pradesh Reels Under Alarming Debt

[hydKaSher]

HYDERABAD:  

The public debt of Andhra Pradesh has reached an alarming level and likely to deprive the cash-strapped State of any additional funds from the Centre.

Finance panel norms

The much-awaited permission to increase fiscal deficit to 3.5 per cent from the 3 per cent according to the Fiscal Responsibility and Budget Management (FRBM) will not be extended to the needy State while others such as Telangana have already obtained the permission.

“Increase in FRBM limits are governed by the guidelines given by the Finance Commission and hence it simply depends on whether a State fulfils prescribed criteria or not,” Arvind Panagariya, Vice-Chairman, NITI Aayog, told BusinessLine while responding to a query on AP’s position on the sidelines of meeting here. .

Effectively, this will not allow Andhra Pradesh to go for higher market borrowing while other States enjoy that facility.

Loser on both counts

According to a senior official, the procedural difficulties in increasing the deficit and borrowing limits for the State were made clear by the Centre in a meeting recently.

According to the existing norms, debt of a State should not exceed 25 per cent of the Gross State Domestic Product (GSDP) while interest amount payable on loans cannot go beyond 10 per cent of the revenue. Andhra Pradesh stands a loser in both.

According to the socio-economic survey 2015-16, its GSDP is estimated at ₹6.83 lakh crore while debts stood at ₹1.90 lakh crore accounting for 27.88 per cent of GSDP. 

The shift of administration from Hyderabad to Amaravati and building of new capital city besides regular development expenditure is bound to further strain the financial condition.

 

 

[hydKaSher]

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[lazybugger]

emi arthamaindi ee report lo neeku?

[BaneReturns]

Just now, lazybugger said:

emi arthamaindi ee report lo neeku?

a.p in debt ane title chusi . happy ga feel iyi share chesivuntadu

[BaneReturns]

[hydKaSher]

1 minute ago, BaneReturns said:

 

baa ochava langa galla pungi paga goddam pada.. item pundakors 

 

mana leader aakathai annai kuda pattukura po thondaraga, ivvala lunch daka koncham free time undi naaku

[lazybugger]

1 minute ago, BaneReturns said:

a.p in debt ane title chusi . happy ga feel iyi share chesivuntadu

my question is, why did TG need relaxation in FRBM limits? and how is AP in a worse position.

pre division TG+AP antha worst ga undedha, both states have applied for FRBM relaxation ante? The report is half baked.

The natural conclusion is both TG and AP are trying to take central govt. for a ride. TG succeeded in it, AP hasn't. Yet.

[Rendu]

ah inka 

[BaneReturns]

1 minute ago, hydKaSher said:

 

baa ochava langa galla pungi paga goddam pada.. item pundakors 

 

mana leader aakathai annai kuda pattukura po thondaraga, ivvala lunch daka koncham free time undi naaku

[hydKaSher]

1 minute ago, lazybugger said:

my question is, why did TG need relaxation in FRBM limits? and how is AP in a worse position.

pre division TG+AP antha worst ga undedha, both states have applied for FRBM relaxation ante? The report is half baked.

The natural conclusion is both TG and AP are trying to take central govt. for a ride. TG succeeded in it, AP hasn't. Yet.

adhe baa cheppedi..mukkodu langa telivi vadadu ani

[Tbidda]

1 minute ago, lazybugger said:

my question is, why did TG need relaxation in FRBM limits? and how is AP in a worse position.

pre division TG+AP antha worst ga undedha, both states have applied for FRBM relaxation ante? The report is half baked.

The natural conclusion is both TG and AP are trying to take central govt. for a ride. TG succeeded in it, AP hasn't. Yet.

FRBM limits are based on current debt and current budget..

TS is in surplus budget andhuke vallaki allow chesaru..

[lazybugger]

1 minute ago, Tbidda said:

FRBM limits are based on current debt and current budget..

TS is in surplus budget andhuke vallaki allow chesaru..

That was not my question.

[hydKaSher]

2 minutes ago, BaneReturns said:

 

baa start oka thd eyyi eskundam langa gallani, ofcourse roju meeru literally ucha poisthunnaru anukondi..ivvala na vanthu effort pedtha , come on lets goooo

[lazybugger]

2 minutes ago, hydKaSher said:

adhe baa cheppedi..mukkodu langa telivi vadadu ani

 

[BaneReturns]

Just now, hydKaSher said:

 

baa start oka thd eyyi eskundam langa gallani, ofcourse roju meeru literally ucha poisthunnaru anukondi..ivvala na vanthu effort pedtha , come on lets goooo