Financial situation of AP slipping to Over-Draft: RBI

Vastavam web: Financial situation of Andhra Pradesh has been slipping to Over-Draft (OD) almost every month since bifurcation.As per the latest info, AP have Rs 1,563 crore of Over-Draft. State Government slipped to OD on 2nd of January. Actually, OD declined in the month of December 2017.If a state continues in OD for 14 days at a stretch, That’s a very alarming sign & RBI would even stall few funds to states in such a situation. RBI Norms: Any State shouldn’t be in OD for two weeks continuously. Ways & Means advance shouldn’t be surpassed in five working days.Already, AP has been in OD for four working days at a stretch. It’s in OD for 13 out of 33 days already. Debts of AP might increase due to more borrowing for compensating financial deficit.