Public debt outstanding of State will inch closer to Rs. 1.8 lakh crore

Each person of the total population of 8.47 crore in Andhra Pradesh carries a debt of Rs. 21,208 on his or her head.

The public debt outstanding of the State will inch closer to Rs. 1.8 lakh crore (Rs. 1.79 lakh crore), constituting 20.91 per cent of the gross State domestic product, by the end of the current financial year. The State has earmarked Rs. 15,298.73 crore, constituting nearly 10 per cent of the overall Rs. 1.6 lakh crore budget, for debt servicing during the financial year.

Borrowing from market

Yet, in his budget presented to the Assembly on Monday, Finance Minister Anam Ramanarayana Reddy made a provision for borrowing Rs. 25,000 crore from the open market. This would take the total quantum of open market loans to Rs. 1.19 lakh crore at the end of the financial year. Borrowings from the open market, according to revised estimates for 2012-13, stood at Rs. 94,608 crore.

Loans from the Central Government are estimated at Rs. 20,282.66 crore, while those from autonomous bodies are likely to be Rs. 1,673.92 crore during 2013-14. Asked about the impact of the debt on the economy, Mr. Ramanarayana Reddy said it was within the limits prescribed under the Fiscal Responsibility and Budget Management Act. Mr. Ramanarayana Reddy said while the per capita debt was at Rs. 21,208, the per capita income had risen sharply to Rs. 77,277 during the year, much higher compared to the national average of Rs. 68,747. “You should consider the high per capita income which is the yardstick of the State’s economy,” the Minister told The Hindu.