The State Government has borrowed more than ₹29,000 crore since the 2020-21 financial year through State Public Sector companies/corporations, Special purpose vehicles (SPVs) and other equivalent instruments. The Central Government has asserted that such borrowings where principal and/or interest are to be serviced out of the State Budgets and/or by assignment of taxes/cess or any other State’s revenues would be considered as Borrowings made by the State Government itself.
Replying to a question by TDP Rajya Sabha member Kanakamedala Ravindra Kumar on Tuesday, Union minister of state for Finance Pankaj Chaudhary said that the Andhra Pradesh government has declared borrowings of ₹22,549.50 crore during 2020-21, ₹6,287.74 crore during 2021-22 and ₹500 crore (estimated) during 2022-23. These borrowings were through State Public Sector companies/corporations, Special purpose vehicles (SPVs) and other equivalent instruments. AP Government submitted this information along with their request for obtaining consent of Government of India for borrowings of 2022-23 under Article 293(3) of the Constitution of India, he said.
Considering the effect of bypassing the normal Net Borrowing Ceiling (NBC) through such borrowings by some States including Andhra Pradesh, it was decided and communicated to the States in March 2022 that such borrowings would be considered as Borrowings made by the State itself for the purpose of issuing the consent under Article 293(3) of the Constitution of India, he added.
