The Union government has responded to the debts incurred by the Andhra Pradesh state government. The Union government made it clear not to borrow and spend at its will. It estimated that the net debt should be only 4 percent of the GDP estimate for the state in the relevant financial year.
As part of this, the state has projected a GDP of Rs 10 lakh 61 thousand 802 crores for the financial year 2021-22 as per the formula prescribed by the Fifteenth Economic Forum. The central government has fixed the net debt limit for the state at Rs 42,472 crore. It clarified that this net credit limit should not be exceeded in the relevant financial year.