Andhra Pradesh has sought permission for borrowing of ₹7,000 crore for the remaining part of current fiscal —2023-24 (FY24).
The State’s Chief Minister, YS Jagan Mohan Reddy, met Union Finance Minister, Nirmala Sitharaman, in the national capital on Thursday.
Although, he did not disclose what transpired during the meeting, according to sources, the State has asked to borrow ₹11,000 crore for the remaining period of current fiscal, which is permissible as per the norms of Andhra Pradesh’s Fiscal Responsibility and Budget Management (FRBM) Act.
“The Centre has already allowed borrowing for ₹4,000 crore; while the State is asking for balance,” a source said.
The amended Andhra Pradesh FRBM, Act of 2005 has prescribed a fiscal deficit at 4 per cent of Gross State Domestic Products (GSDP).
Budget for FY24 pegs GSDP at ₹14.5-lakh crore. Expenditure (excluding debt repayment) in FY24 is estimated to be around ₹2.61-lakh crore while receipts (excluding borrowings) are estimated to be over ₹2.06-lakh crore. The fiscal deficit for FY 24 is targeted at 3.8 per cent of GSDP (Rs 54,588 crore) thus providing room for additional borrowing.
The total receipts during April‐June 2023, were ₹85,731.03 crore which is 30.70 per cent of BE for FY24 while expenditure during this period was ₹87,439.81 crores which is 31.31 per cent of BE