October crisis looms large over the Andhra Pradesh government. Finance department is seriously discussing ways to tide over the looming calamity. Officials are clueless where to get money for pensions and interest on debts availed. They could somehow mobilise Rs 6,700 crore needed for the YSR Asara scheme.
They need Rs. 14,000 crore more in another 10 days for salaries, pensions and other obligations. On the other hand, the revenue to the state government has fallen steeply. The big-budget populist schemes being implemented by YS Jagan have drained the state coffers, forcing officials to explore all avenues for funds.
At this juncture, only Centre can come to the rescue of the state government. It can open a window for credit through the Reserve Bank of India. The Centre itself cannot offer any solace to the states as it is suffering from adverse effects of pandemic-induced slump. Even if it provides a lifeline through RBI, the state can avail only Rs. 15,000 crore loan.
The finance officials say this amount may be enough for the month of October but what about later? There are also doubts about RBI extending loan at such a short notice. If RBI loan is not available, the only way out will be ‘off-budget borrowing’, that too only Rs 11,000 crore.
GST dues a pittance
The state is pleading with the Centre to clear GST dues. But these dues are a pittance compared to the requirements of the government. The Chief Minister is said to have told his MPs to go soft on Centre in order to get GST dues and get other works done. He is also said to have asked them to support the government in Parliament.
Finance department officials to Delhi
YS Jagan is intensifying his efforts to tide over the current financial crisis. He is sending finance minister Buggana Rajendranath Reddy and senior finance department officials to Delhi. As the Parliament session is going on, it is expected that MPs who are in Delhi along with Buggana and finance department officials will meet Union finance minister Nirmala Sitharaman and RBI officials to explain the financial crisis the state is facing and seek funds.
