AP Exhausted 97.4% of Credit Limit under RBI: TD

Vijayawada: National spokesman of Telugu Desam, Kommareddy Pattabhiram on Sunday tore into the Chief Minister Y.S. Jagan Mohan Reddy-led Andhra Pradesh government, saying it had already exhausted 97.4 per cent of its credit limit under the Reserve Bank of India (RBI).

From April this year, the RBI extended loans 17 times to state governments through the auction of state government securities, Kommareddy told to media persons in Vijayawada.

Andhra Pradesh, in this period, utilised this mechanism 14 times, which is the most by a state government, he said, adding Andhra Pradesh was also the first state to approach the RBI for this scheme this fiscal.

The Jagan-led government has raised loans to the tune of Rs 29,500 crore in this period, Kommareddy said.

He said at Rs 40,000 crore, Tamil Nadu had borrowed more than AP this financial year but it was okay as a Tamil Nadu’s gross state domestic product (GSDP) is Rs 28 lakh crore, making it a much bigger state economically. A state can raise loans up to three per cent of its GSDP,  and according to that Tamil Nadu can raise loans up to Rs 85,000 crore.

Pattabhiram said neighbouring states Karnataka and Odisha have not raised any loans this fiscal.

Pattabhiram said Andhra Pradesh has already reached 97.4 per cent of its limit under this mechanism.

He further pointed out bigger states like Maharashtra borrowed Rs 23,000 crore, Rajasthan Rs 20,500 crore, Telangana Rs 17,000 crore, Punjab Rs 15,500 crore, Kerala Rs 12,500 crore, Uttar Pradesh Rs 9,500 crore, West Bengal Rs 6,500 crore, Gujarat Rs 5,500 crore and the backward state of Bihar raised Rs 4,000 crore in this fiscal till now.