Andhra Pradesh in debt trap: CAG Report

Amaravati: Andhra Pradesh is caught in an increasing debt trap, according to a CAG report released late on Tuesday. According to the report, with the mounting debts, AP stands fourth among all the States in the country.

The CAG report says that the debt burden on the state is Rs 73,912.91 crore, when compared to more than double of the loan estimation. There was an increase in debts despite an increase in revenue during the current financial year.

CAG says that the revenue during the present financial year stands at Rs 88,238.70 crore as against 85,987.04 crore during the last financial year, an increase of over Rs 2,000 crore. When compared to the loans the State government had borrowed Rs 73,912.91 crore during the present financial year as against Rs 46,503.21 crore during the last financial year registering an increase of 153 per cent.

The financial deficit, the report said, was increasing at an alarming rate every year and the revenue deficit stands at Rs 54,046 crore as against Rs 34,60 crore last year.

The State government, however, claims that the capital expenditure has increased, and it stands at Rs 19,547 crore as against Rs 7,297 crore last year. AP has already utilized special drawing powers, simple loans and overdraft facility.

The Opposition parties feel that the AP has achieved the distinction of being number one state in debt burden. This is because of low internal revenue generation and high expenditure on welfare schemes and mismanagement.