It is a very well known fact that the Andhra Pradesh government led the state to a kind of financial crisis that was never heard of, by any state in the history of the country. The state has been diverting all of its funds toward its welfare schemes, which dried up the treasury, and the government didn’t even make any active efforts toward creating developmental opportunities in the state. All of this led the state into a financial crunch.
The Central government is currently writing letters to the AP government, asking the latter to detail its financial status. This is currently shocking everyone as it wouldn’t take much for the Centre to get to know the AP government’s financial condition, and even expose it, as the state government took loans from banks, and not from any private organisations. Everyone is wondering why the Centre seems to be protecting the state government, especially when the neighbouring countries are all going through financial meltdowns.
The AP government is currently trying to take more loans apart from its existing loans, which is why the Centre has written letters to the state, to show its financial condition, based on which it would take a decision on whether or not the state government can be given permission to take more loans. The outstanding loan amount of the AP government is the highest in the country, and it is expected to take a decade nearly, to come out of such a huge debt.