Ajey Kallam, AP special chief secretary, finance has told that they are seriously concerned over increased borrowings and repayment burden and they have been making all efforts to reduce the revenue expenditure, which is the prime culprit for the alarming situation.
Meanwhile what is more worrying the state is the debt to GSDP ratio, which has already crossed the prescribed limit of 25%. Currently the debt to GSDP stands at 28.59% and this will cross 30.02% by 2021 to 22.
Currently the state has already crossed all limits in raising money from open market, Nabard, small savings, external aided projects, LIC, GIC, NCDC and Hudco and what is more serious is the excess utilization of funds that are parked in the public account.
An official has pointed out that utilizing public account funds will adversely affect the finances of the state, but AP has no choice but to go in for the undesirable option as the Centre has imposed a cap on its borrowings to three per cent of the GSDP under the FRBM regulations.
