Andhra Pradesh on Brink of Financial Collapse: Finance Minister

Kurnool: Finance minister Payyavula Keshav expressed grave concern about the state's financial condition, which he said is on the brink of collapse. He informed that the state’s debt has surged to Rs 10 lakh crore, forcing the government to take new loans merely to service the existing debt.

The minister shared his views in Anantapur on Thursday, stating that the financial distress was a result of mismanagement under the YSRC government. He noted that the state’s income is barely sufficient to cover 99 per cent of employee salaries and pensions the state is now borrowing money to implement government schemes and fund development projects.

Despite the current difficulties, Keshav defended borrowing, stating that loans taken would be invested in development and the subsequent income would be used for the welfare of the poor. However, he blamed the YSRC government's chaotic policies for worsening the financial condition.

“While efforts are being made to increase the revenue, it would take considerable time to address the debt burden left by the previous government. We are making new loans to pay interest on previous loans. However, I am confident that the alliance government will move ahead with its commitment to a development-focused and welfare-based agenda,” he added.