Commentators, especially middle class people, are coming out with sharp reactions to the defensive arguments made by the YCP Government on the issue of huge loans. Chandrababu Naidu has also procured massive loans in his time but there was a balance of development and welfare at that time. They used to support their arguments saying the loans were used in developing basic infrastructure in health, education, agriculture and other sectors.
Now, the situation has become quite strange. The Jagan regime has come out with a smart argument that it has not not misused the huge loans but only distributed them towards cash benefits being given to the poor people. But then, the question is raised whether this massive welfare spending has helped in raising the living standards and spending capabilities of the poorer sections in a big way.
The middle class sections, who consist of the largest tax paying segment, are particularly concerned over the manner in which the YCP Government tried to defend its bringing huge loans. While the ultra rich default the banks and get away with that, the poorer sections are getting cash benefits from the Governments enough not to work. Eventually, it is the middle class segment and employees and small businesses who are made to suffer.
If the Government goes on bringing huge loans to give free cash benefits to the poor, then how it has to be repaid. The Government itself is saying the revenue has fallen by 3.37 percent during 2019-2020. The YCP arguments have undoubtedly triggered greater concerns like never before on the economic situation and State debts among the people.