Lok Sabha Question No. 3022 (UNSTARRED), answered on 2018-01-05
Subject: Debts of Andhra Pradesh
Ministry: FINANCE
Asked by: YERRAM VENKATA SUBBAREDDY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 3022 TO BE ANSWERED ON FRIDAY, 05 th  January, 2018 15 PAUSHA, SAKA 1939

## Debts of Andhra Pradesh

## 3022.  SHRI Y.V. SUBBA REDDY

Will the Minister of FINANCE be pleased to state:

- a)  the details of total  debts of Andhra Pradesh at the time of its division in June, 2014 along with its debts to various financial and other institutions as of June, 2014, institution/agency-wise;
- b)  whether the State Government of Andhra Pradesh is in deep financial crisis and if so, the details thereof;
- c)  the details of total debts of other States as of June, 2014, State-wise;
- d)  the  details  of  the  present  debts  of  Andhra  Pradesh  as  of  1st  December,  2017 and  the  agencies/  institutions  from  which  Andhra  Pradesh  got  loans  and repayment made since June, 2014, institution/agency/ year-wise; and
- e)  the details of projects/schemes/ programmes for which above debts have been utilised by the Government of Andhra Pradesh, year/scheme-wise and the status of each of such scheme/ programme/project?

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PON. RADHAKRISHNAN)

- (a) As gleaned from Finance Accounts of the State of Andhra Pradesh, the details of outstanding public debt and other liabilities as on 01.06.2014 is placed at Annex-I .
- (b) One of the terms of references of Fourteenth Finance Commission (FFC) was inter alia to consider the resources of the State governments and demands on such  resources  under  different  heads,  including  the  impact  of  debt  levels  on resource availability  in  debt  stressed  states,  for  the  five  years  commencing on 1st April  2015,  on  the  basis  of  levels  of  taxation  and  non-tax  revenues  likely  to  be reached during 2014-15.

In  this  context,  FFC  has  observed  at  para  14.49  of  its  Report  that  the aggregate debt and deficit indicators of all States are well within the target threshold suggested by the Thirteenth Finance Commission. As such FFC has not identified any  State  as  debt  stressed  State.  Besides,  Debt-GSDP  ratio  is  one  of  the  prime indicators of financial health of a State's economy. As per the State-wise illustrative fiscal  roadmap  drawn  by  FFC,  the  Debt-GSDP  ratio  projected  for  the  State Government  of  Andhra  Pradesh  is  23.88%  for  2014-15,  24.33%  for  2015-16  and 24.74%  for  2016-17.  Hence,  the  Debt-GSDP  ratio  of  the  State  Government  of Andhra Pradesh is within the projection made by FFC.

(c) As per Reserve Bank of India (RBI) Report titled 'State Finances: A Study of Budgets of 2016-17', the state-wise details of debts of the other States excluding Andhra Pradesh at the end of March 2014 and March 2015 are placed at Annex-II .

(d) As gleaned from the State's Finance Accounts and Budget documents, outstanding public debt of the State of Andhra Pradesh was Rs.1,73,854 crore at the end  of  March  2016  (actuals),  which  is  estimated  to  be  increased  to  Rs.1,92,984 crore  at  the  end  of  March  2017(RE)  and  further  estimated  to  be  increased  to Rs.2,16,027 crore at the end of March 2018 (BE).

(e) Debts are primarily taken by the State Govt. for meeting the fiscal deficit of the State including Andhra Pradesh for a given year. The utilization details of debt taken by the States are maintained by the State Governments.

*****

Annex-I  to  reply  to  part  (a)  of  Lok  Sabha  Unstarred  question  No.  3022  for 05.01.2018.

Outstanding public debt and other liabilities of Andhra Pradesh as on 01.06.2014

| Sl. No.   | Nature of Borrowings                                      | Amount (Rs. in crore)   |
|-----------|-----------------------------------------------------------|-------------------------|
| 1         | Internal Debt of the State Government                     |                         |
|           | - Market Loans                                            | 1,17,050.53             |
|           | - Bonds                                                   | 487.33                  |
|           | - Loans from Financial Institutions                       | 5,703.65                |
|           | - Special Securities issued to National Small Saving Fund | 25,207.73               |
|           | - Other Loans                                             | 406.42                  |
| 2         | Loans and Advances from the Central Government            | 17,666.66               |
| 3         | Other Liabilities: Public Account                         | 33,649.31               |
|           | Total                                                     | 2,00,171.63             |

Annex-II  to  reply  to  part  (c)  of  Lok  Sabha  Unstarred  question  No.  3022  for 05.01.2018.

## OUTSTANDING DEBT OF OTHER STATES EXCLUDING ANDHRA PRADESH

(Rs. in Billion)

|   Sl. No. | States            | At the end of March 2014   |   At the end of March 2015 |
|-----------|-------------------|----------------------------|----------------------------|
|         1 | Arunachal Pradesh | 47.1                       |                       61.6 |
|         2 | Assam             | 309.7                      |                      354.6 |
|         3 | Bihar             | 886.2                      |                      994   |
|         4 | Chhatisgarh       | 260.8                      |                      310.9 |
|         5 | Goa               | 132.8                      |                      140.9 |
|         6 | Gujarat           | 1885.2                     |                     2025.1 |
|         7 | Haryana           | 796.1                      |                      926.7 |
|         8 | Himachal Pradesh  | 338.8                      |                      381.8 |
|         9 | Jammu & Kashmir   | 448.2                      |                      482.2 |
|        10 | Jharkand          | 378.4                      |                      437.4 |
|        11 | Karnataka         | 1389.8                     |                     1583.7 |
|        12 | Kerala            | 1256.8                     |                     1435.6 |
|        13 | Madhya Pradesh    | 963.6                      |                     1087.5 |
|        14 | Maharashtra       | 3093.3                     |                     3218.1 |
|        15 | Manipur           | 70.9                       |                       73.9 |
|        16 | Meghalaya         | 65.9                       |                       69.1 |
|        17 | Mizoram           | 62.2                       |                       70.1 |
|        18 | Nagaland          | 83.5                       |                       79.5 |
|        19 | Orissa            | 504.7                      |                      508.8 |
|        20 | Punjab            | 1023.0                     |                     1123.9 |
|        21 | Rajasthan         | 1281.9                     |                     1480.9 |
|        22 | Sikkim            | 33.4                       |                       35   |
|        23 | Tamil Nadu        | 1795.7                     |                     1856.1 |
|        24 | Telangana         | -                          |                      726.6 |
|        25 | Tripura           | 87.4                       |                       93.3 |
|        26 | Uttar Pradesh     | 2662.4                     |                     3140.7 |
|        27 | Uttarakhand       | 303.1                      |                      340.4 |
|        28 | West Bengal       | 2590.1                     |                     2773.2 |