GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
RAJYA SABHA
UNSTARRED QUESTION NO. 996
TO BE ANSWERED ON TUESDAY, 26th JULY, 2022
4 SRAVANA, 1944 (SAKA)
Borrowing by State of Andhra Pradesh during 2022-23
996. SHRI KANAKAMEDALA RAVINDRA KUMAR:
Will the Minister of FINANCE be pleased to state:
(a) whether the Union Government has prescribed any borrowing limit for the State of
Andhra Pradesh for the financial year 2022-23;
(b) if so, the details thereof;
(c) whether Government is in possession of details pertaining to borrowings of the State
Government of Andhra Pradesh till June 2022 for the financial year 2022-23; and
(d) if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b) Yes Sir. Based on the recommendation of the 15th Finance Commission (XV-
FC), the normal net borrowing ceiling (NBC) of the States including Andhra Pradesh have
been fixed at 3.5 percent of Gross State Domestic Product (GSDP) for the financial year
2022-23. Accordingly, the normal NBC of the State of Andhra Pradesh has been fixed at
Rs.44,574 crore for the financial year 2022-23. In addition, extra borrowing ceiling of
Rs.4,203.96 crore has been allowed to the State of Andhra Pradesh equivalent to estimated
combined share of State and its employees’ contribution pertaining to the financial year 2022-
23 to be actually deposited with the designated authority as per the guidelines of National
Pension System (NPS), over and above, the normal net borrowing ceiling. Further, States are
also eligible to avail additional borrowing of up to 0.50% of GSDP based on certain
performance criteria in power sector.
After considering estimated repayment of liabilities, liabilities arising from other
sources, adjustment on account of over-borrowing of previous years, consent of Government
of India under Article 293(3) of Constitution of India has been issued to Andhra Pradesh for
raising Open Market Borrowing (OMB) of Rs. 43,803 crore during the first nine months of
FY 2022-23 and for availing Negotiated Loan from National Bank for Agriculture and Rural
Development (NABARD) of Rs. 2,000 crore during the financial year 2022-23.
(c) and (d) As per information available, State Government of Andhra Pradesh has raised
OMB of Rs.21,890 crore, availed loan of Rs. 40.17 crore from NABARD and loan from
Centre of Rs.1,373.47 crore during financial year 2022-23 upto end of June, 2022.
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