Chief Minister YS Jaganmohan Reddy and his party leaders’ main allegation is that the previous TDP government has left Andhra in deep debts. But going by the budget projects, the YCP government will have to raise more loans than TDP and thereby push the state into greater debts. Last year, the Chandrabababu Naidu government brought Rs. 38,000 cr loans to fill the gap between revenue and expenditure.
This year’s budget presented by Finance Minister Buggana Rajendranath Reddy has huge allocations for welfare and Navaratnalu promises. If this has to be fulfilled, the YCP government has to mobilise loans of Rs. 46,900 cr. Generally, less revenue will be reported as against the positive estimates in the budget. The Jagan government would have to face these prospects in the days to come.
Analysts say that the YCP government may also face another hurdle like outside agencies may not give more loans because of the government’s higher spendings on unproductive sectors. The massive freebies given under Navaratnalu welfare schemes will be considered non-productive. The lack of balance between development and welfare aspects may give a tough time to Jagan in the coming days.
