Hyderabad: The Centre has allowed the AP government to borrow '3,000 crore. The state had requested the Centre to give permission to borrow '3,500 crore. But the Centre permitted to borrow only '3,000 crore. The state will go for market borrowing before March 22. With this the state’s market borrowings will touch '18,000 crore.
According to revised estimates of tax collections of the Centre is likely to fall by around 4 per cent. Accordingly the Centre will cut the state’s share in tax. AP will receive '342 crore less from the Centre in March. The state’s own tax and non-tax revenue also is likely to come down this month.
The state will face trouble even in paying salaries unless it goes for market borrowings. There are about '1500 crore worth bills pending with the government. Generally in March all departments submit bills. But this year they started submitting bills in February itself. But the finance department has no money to pay. The department will pay bills only in the next financial year.
