The cash-starved Andhra Pradesh has borrowed huge sums from the market and a sizeable part of the borrowing was utilised to repay part of the loans and interests.
As per CARE Ratings’ October report on State government borrowings H1-FY2017, the Andhra Pradesh government borrowed Rs.8,200 crore at 7.78 per cent interest rate in the first half of the current fiscal. Interestingly, about 80 per cent of the amount was used to repay the debts and interest rates on the State liabilities, according to sources in the government.
We have an alarming debt burden of about Rs.1.6 lakh crore, of which about Rs.18,000 crore was disputed one inherited during bifurcation.
eenadu sunday book 16/10/2016 : http://epaper.eenadu.net/