– ₹1,12,750 crore debt incurred in just six months.
– Coalition government sets a record for the highest borrowing in Andhra Pradesh’s history.
Debt Over the Years
At the time of Andhra Pradesh’s bifurcation in 2014, the state’s debt stood at ₹1,32,079 crore. By 2019, under the TDP government, this figure rose to ₹3,13,018 crore, reflecting a 19.54% increase. The YSRCP government, which took office in 2019, left the state with a debt of ₹6,46,531 crore by 2024, marking a 15.61% increase during its tenure.
Now, under the new coalition government, Andhra Pradesh has set an unprecedented record by borrowing ₹1,12,750 crore within just six months. With three months remaining in the financial year, experts warn that this figure could rise even further.
Monthly Borrowing: A Necessity for the Coalition Government
Since coming to power, the AP coalition government has relied heavily on monthly borrowings.
June 2024: ₹6,000 crore
July 2024: ₹10,000 crore
August 2024: ₹3,000 crore
September 2024: ₹4,000 crore
October 2024: ₹6,000 crore
November 2024: ₹4,000 crore
December 2024: ₹9,237 crore
In addition to direct borrowings, the government has also leveraged guarantees to secure loans. This includes ₹1,000 crore and ₹1,800 crore through the AP Markfed and NCDC in June, ₹3,200 crore in July, and ₹2,000 crore under the Civil Supplies Corporation. The AP MDC secured another ₹5,000 crore, bringing the total guaranteed borrowings to ₹13,000 crore.
Amaravati Development: ₹31,000 Crore More in Loans
The government has also outlined plans to borrow ₹31,000 crore for Amaravati’s development:
₹15,000 crore from the World Bank.
₹11,000 crore from HUDCO.
₹5,000 crore from a German bank.
Impact on the State Budget
The coalition government’s borrowing spree has already added ₹1,12,750 crore to the state’s debt within six months. Additionally, the fiscal deficit for the ongoing budget is pegged at ₹68,742 crore, indicating a heavier debt burden on the state’s population in the future.
This unprecedented borrowing spree has sparked concerns among financial experts and opposition parties, who warn that the state’s mounting debt could have long-term repercussions on its economic stability and growth prospects.
