The YSRCP government in Andhra Pradesh led by Chief Minister YS Jaganmohan Reddy has pushed the state into bankruptcy since coming to power two years ago in May 2019.
Jagan’s cash dole out schemes in the name of Navaratnalu to consolidate his party’s vote bank has pushed AP into debt trap.
Hardly a day passes for Jagan government without taking loans to make payments.
Against this backdrop, everyone lost confidence on Jagan government that it will pay bills for works done by contractors.
The Jagan government issued tenders recently to repair roads lying in worst condition in AP for the last two years. But no contractor is coming forward to take up works fearing that Jagan government has no money to pay bills.
Contractors are insulting Jagan government by asking bank guarantee for payment of bills.
Contractors insist that Jagan government take loans from banks and banks release funds to them directly as they have no confidence that Jagan government will pay if banks release funds to state government.
Officials say this amounts to contractors humiliating Jagan government as bankrupt government because no where in the country banks pay directly to contractors.
