Will Jagan opt for RBI overdraft for ‘Ammavadi’ Cash?


CM Jaganmohan Reddy and Finance Minister Buggana Rajendranath Reddy used to mock at Chandrababu Naidu for pushing AP into RBI overdraft situation several times. Their main criticism was to highlight how Naidu mismanaged financial situation and pushed the state into debts. In the last seven months of his rule, Jagan Reddy did not go for overdraft despite the most difficult of financial distress. But for the sake of ‘Ammavadi’ Cash transfers, CM Jagan is forced to break his rule. He is in no position to say no to RBI overdraft any more because of the latest complications. Now, the AP finance department officials have asked for Rs. 3,000 Cr overdraft from RBI so as to pay ‘Ammavadi’ beneficiaries immediately.

Actually, Union Finance Minister Nirmala Sitaraman has showed kindness and gave approval to AP for taking loans Rs. 7,428 Cr from the open market. As this came after lot of delay, AP is unable to immediately mobilise this money for Ammavadi which is already delayed. Now, the AP government is going to pay Ammavadi benefit of Rs. 15,000 in batches. It has been a Navaratnalu promise made by Jagan Reddy to give cash to mothers to send their children to schools. The government aims at benefitting nearly 45 lakh mothers. Rivals say that Jagan is not able to fully implement a single promise of Navaratnalu. Anyhow, Jagan Circar is getting ready to borrow huge loans for Cash Transfer, non-productive schemes at Rs. 8.5 interests and above from open market.

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