Amaravati: The Andhra Pradesh government has decided to borrow another ₹9,000 crore through the Andhra Pradesh Mineral Development Corporation (APMDC) via private placement of bonds or debentures. This follows the ₹5,000 crore loan secured last year, bringing APMDC’s total debt to ₹14,000 crore. The government claims these funds will be utilized for mining projects and profitable ventures.
However, financial experts and opposition leaders are raising concerns over the rising off-budget borrowing. Reports indicate that the total debt raised by the coalition government through various corporations has now reached ₹23,700 crore—all of which is outside the official state budget, raising questions about transparency and repayment responsibilities.
Adding to this, the government has provided a guarantee for the ₹11,000 crore loan from HUDCO for Amaravati’s development, making it responsible for repaying the debt along with interest. Critics argue that this pattern of borrowing through corporations, instead of direct state budgeting, could increase the financial burden on future governments.
With such large-scale off-budget borrowing, the government faces increasing scrutiny over its financial management and the long-term impact on Andhra Pradesh’s economy.
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