The AP government is facing a never-before financial challenge because of its ‘Navaratnalu’ Cash Transfer welfare programmes. Under the present circumstances, it will have no option but to get private loans worth Rs. 15,230 Cr in order to fulfill various election promises. This amount would be sufficient only for September and October months.
Already, the government is borrowing Rs. 3,000 Cr per month from existing banking and financial institutions towards meeting its prior requirements. Financial experts say that it’s going to be a very difficult task for AP to secure huge loans additionally in the open market under the changed circumstances.
AP’s financial worries are further aggravating because of the Central Government’s inability to provide additional funds to the state towards AP reorganization commitments. The Centre is getting badly hit by the drop in GST collections and the impending global recession. AP Finance Minister Buggana Rajendranath Reddy, who was speaking eloquently till recently, has fallen silent these days. The officials are also left with no clear clues how to overcome the financial crisis while simultaneously satisfying Jagan’s welfare goals.
