Ever since the YSRCP government led by Chief Minister YS Jaganmohan Reddy came to power in Andhra Pradesh in May 2020, the financial condition of AP has turned from bad to worse.
This is because Jagan is busy rolling out ‘cash doles’ to people in the name of “Navaratnalu” to consolidate his ‘vote bank’ at the cost of public money without focussing on the development of state or wealth creation in AP.
Though AP today stands in the top-5 states in India in taking loans from banks and various financial institutions, Jagan, his ministers and YSRCP leaders denied them all these days saying that the financial condition of AP is strong and loans taken by the government were under ‘permissible limits’.
However, on Friday, AP finance minister Buggana Rajendranath Reddy officially admitted that the state government took massive loans and the loans in the current fiscal 2020-21 surpassed the Budget estimates.
He said that the YSRCP government took loans to fund Jagan’s Navaratnalu schemes under which the government is crediting the amount in the bank accounts of lakhs of beneficiaries every month.
Buggana said the government was forced to take loans to fund Navaratnalu as the government’s revenue earnings took a severe beating due to corona crisis.
The recent CAG report also cautioned about the alarming financial condition of AP and advised the government not to depend only on loans to moblise funds.