Will all the famed “Navaratnas” of YS Jagan Mohan Reddy lose their sheen? Will Jagan begin looking for ways and means to cut down on the spending for the very welfare schemes riding on the crest of which he stormed to power in 2019? Will some belt-tightening be practiced soon by the AP government, which earns less and spends more?
The slew of welfare schemes being implemented in Andhra Pradesh is beginning to pinch YS Jagan Mohan Reddy. The government is now finding it extremely hard to get additional revenues for the spending and is forced to go in for heavy borrowing. With a tight-fisted disciplinarian like Narendra Modi at the helm of affairs, Jagan is now caught between the devil and the deep sea.
The AP government now needs Rs 44400 crore to pay off its past loans and to ensure the continuance of the welfare schemes. However, the Central Government has put a check on the loans being borrowed by the AP government. The Central Government under Narendra Modi has allowed only 33688 crore loan. This figure was arrived after taking into account various loans obtained by various departments and the corporations of the AP government. The bar is in accordance with the 15th Finance Commission’s cap on the net borrowing for every state. The Centre says that every state can go for net borrowings of only 4% of the Gross Domestic Product (GDP) projected in a given financial year.
The AP Government’s spending and revenues have little correlation. While the State Government has already spent Rs 47119 crore in the first quarter this year so far. Its revenue during this period was a mere Rs 17812 crore. With the Centre not obliging profligacy at any cost, tough times are soon going to start for YS Jagan. He is indeed riding a tiger of freebies which he cannot even dare to dismount, but at the same time, cannot continue this ride anymore.
Vidu jail ki pote batikipotadu.