The state could overcome the situation only with the cooperation of the banking sector: Jagan Mohan Reddy
Covid-19 has placed a financial burden of Rs 30,000 crore on the Andhra Pradesh government, Chief Minister YS Jagan Mohan Reddy said here on Tuesday.
In 2019-20 financial year, the state suffered a revenue loss of Rs 8,000 crore and in 2020-21 another Rs 14,000 crore.
"Besides, we had to spend a sum of Rs 8,000 crore on Covid-19 control and management. All put together, the financial burden on the state was Rs 30,000 crore," the Chief Minister told bankers at the State-Level Bankers Committee meeting.
"The economic condition particularly in rural areas has worsened due to Covid-19. On one hand we suffered a loss of revenue and on the other we had to spend more money to fulfil the needs of people," the Chief Minister pointed out.
The state could, however, overcome the situation only with the cooperation of the banking sector, he said, ostensibly referring to the large-scale borrowings.
But for the cooperation of the banks, it would have been difficult to mobile resources, he noted.
It also helped put the rural economy back on track, he added.
Finance Minister Buggana Rajendranath, Agriculture Minister K Kanna Babu, Chief Secretary Sameer Sharma, Union Bank of India MD and CEO Raj Kiran Rai, SLBC Convenor V Brahmananda Reddy and other officials attended.