Vijayawada, September 08, 2021: The Government of India has given a much-needed breather to the cash-starved Andhra Pradesh government, allowing it to raise Rs 10,500 crore through open market borrowing (OMB) for the first nine months of the ongoing financial year.
With this, the total OMB allowed to the state during the current year would be Rs 31,251 crore, the Union Finance Ministry said in a letter to the Reserve Bank of India.
The Centre fixed a Net Borrowing Ceiling (NBC) of Rs 42,472 crore for the state for the year 2021-22, with a borrowing space of Rs 37,163 crore for the first nine months according to the reports published in moneycontrol.com.
A debt statement’ prepared by the state Finance Department indicated that a sum of Rs 34,058.80 crore has already been borrowed from April to August this year.
The sum includes Rs 14,867.60 crore OMB in the first five months of the current fiscal year, the statement said.
