Andhra Pradesh Seeks Lower Interest Rates from Banks
Andhra Pradesh Chief Minister N. Chandrababu Naidu has instructed senior officials to negotiate with banks and financial institutions to reduce the interest rates being charged on loans taken by the state government. Naidu said lowering borrowing costs is essential for improving the state’s financial stability and easing long-term repayment burdens.
Savings Expected Through Loan Restructuring
During a review meeting, Naidu noted that the state has already achieved substantial savings by rescheduling existing loans and renegotiating select financial commitments. He said further talks with banks could help secure more favourable terms, potentially saving the state hundreds of crores in the coming years.
Push for Governance and Administrative Reforms
Naidu also used the meeting to push for wider governance reforms. He instructed departments to simplify procedures, speed up file clearances, and adopt digital systems to make administration more transparent and efficient. He emphasised that public service delivery must improve in a way citizens can clearly feel.
Focus on Public Funds and Central Allocations
The Chief Minister warned departments to fully utilise central funds within timelines to avoid losing allocation opportunities. He also highlighted the importance of effective monitoring of public health, sanitation, and grievance redressal systems.
Strengthening State Finances and Investor Confidence
Naidu said reducing interest liabilities and tightening fiscal discipline will help Andhra Pradesh build investor confidence and ensure stable economic growth. He added that every department must align with the state’s financial priorities and work towards measurable outcomes.
