The financial mismanagement of Jagan Circar is drawing increasing criticism from the Opposition parties. There have been also allegations of political harassment and police cases against rival parties’ leaders and activists. Amid these concerns, the demand is coming forth for imposition of Financial Emergency in the state under Article 360. In the last eight months, revenue generation has fallen down by Rs. 10,000 Cr because of anti-industry policies in AP. The available revenue is enough to pay salaries of government employees and to meet establishment expenditures. The financial situation has already reached an unmanageable level.
Despite threatening financial crisis, CM Jaganmohan Reddy is putting up a bold face without initiating any steps to resolve the situation. Moreover, he is announcing new welfare schemes. Now, TDP ex Minister Yanamala Ramakrishudu says that over Rs 35,000 cr bank loans are taken by Jagan Circar in the past seven months. But this money is not used for any productive projects of schemes. What more, Rs. 10,000 Cr bank loans are being taken to give cash benefits under Ammavadi scheme. These financially burdensome policies have made AP a fit case for Financial Emergency. The Centre has not invoked this till now in independent political history of India. If imposed, it automatically means the Centre’s rule in the state. Virtually, no programme or development project would be taken up in the state if it requires expenditure. No Navaratnalu and no cash transfers any more.
