Why Jagan may soon cut down VAT on petrol?

Will AP Chief Minsiter YS Jagan Mohan Reddy reduce the VAT on the petroleum products soon? Highly placed sources say YS Jagan could take the drastic step to bring down the anger of the middle class and educated voters againstto his governance. Sources say that petrol fuel hike, bad roads and worsening financial situation are the chief reasons why the middle class is turning against the YS Jagan government.

YSRCP insiders say Jagan got two secret surveys commissioned recently. The first one was by the village volunteers and the second by the intel wing. While the first survey said that the women and senior citizens are happy with the delivery of the welfare schemers, the second survey said that there is a growing disenchantment among the educated class. The survey has also revealed that the disenchantment is growing at a rapid pace.

It also suggested that the government can arrest this anger by reducing VAT on petrol and by improving the roads. Hence sources say that Jagan could soon bring down VAT on petrol. This would provide some succour to the middle class and help him contain their anger. At the same time, the Government is also mulling taking up road repairs in a big way.

However, political watchers say that both may not be that easy for YS Jagan. The state is already cash-strapped and is finding even payment of salaries difficult. It may have to make further borrowings which will affect the state’s economy further. Jagan, sources say, is caught in a Catch 22 situation, where he cannot cut down on welfare schemes for fear of alienating the poor and he cannot spend on development due to which the middle class is moving away from him.