Chandrababu Government Borrows Rs 5,000 Crore in Just One Day!

The Chandrababu Naidu government on Tuesday borrowed Rs 5,000 crore from the Reserve Bank of India. It is going to borrow another Rs 4,000 crore later this month. So, in total, it is borrowing Rs 9,000 crore this month itself. This is on top of Rs 2,000 crore it borrowed in the month of June.

The NDA government, led by the TDP, has plans to borrow Rs 17,000 crore in total (excluding June debt) by the end of September. In August and September put together, it is going to borrow Rs 8,000 crore.

The Yellow Media, meanwhile, is maintaining a stoic silence over the new government's indiscriminate borrowing. Chandrababu has been talking about wealth generation. Is this how prosperity is created? Economic experts are expressing shock over the fiscal indiscipline on display.

The interest rate for the borrowed money stands at about 7.36%. If the financial situation is anything to go by, the government will have to borrow on so many Tuesdays in the coming years.