Hyderabad: The debt burden of the AP government is so serious that it will be paying twice the principal amount as interest.
According to projections for this financial year the state’s debt will reach Rs 1,79,140 crore, and cross Rs 2 lakh crore in the next financial year.
By the end of 2016-17, the interest on outstanding loans will Rs 8,933 crore and the government will need repay Rs 4,243 crore of the principal amount. The government has to pay the interest and principal once in six months.Due to the financial crisis, the government has stopped payment of bills and is not in a position to release Budget funds to departments.
Despite this, the government is giving concessions and exemptions to various sectors against finance department advise. The government has decided to amend rules to avoid taking the finance department’s opinion on concessions.
