Finance department officials are racking their brains on how to mobilise funds to meet the obligations of governance as October 1 has arrived. With Chief Minister YS Jagan Mohan Reddy doling out freebies indiscriminately so that he can remain chief minister for decades to come, officials are struggling to pay salaries, pensions and other disbursals.
Beyond the means
The generous promises of the Chief Minister are causing concern among finance department officials. The government needs Rs. 15,000 crore to Rs. 18,000 crore for its monthly expenses. The state officials have already sent reports to the Centre seeking funds. But leave alone the emergency credit, even the normal dues to the state have not been released by the Centre on account of Covid.
Property registrations have come to a halt. Liquor shops were opened only recently. Bars too were opened only 10 days ago. Revenue from transport sector has dried up. Under these circumstances, the state officials are pinning their hopes on the Centre alone. But there seems to be no sign of Centre coming to their rescue. The only remaining hope is RBI. However, it seems state finance officials have not received any definitive assurance from the RBI too.
Unprecedented situation
According to sources, the state has never experienced such an awful financial situation. Though the coffers were in no better shape after the bifurcation, the then Chief Minister N Chandrababu Naidu used to be prudent in spending. Officials recall that when the YS Rajasekhar Reddy government was in power in united AP, Congress was in power at the Centre. It generously gave money needed for welfare measures. But now CM Jagan is going on a freebies distribution spree without any consideration for the source of funds, pushing the state deeper into financial mess. Former finance minister Yanamala Ramakrishnudu said, “Andhra Pradesh’s financial condition is in dire straits. Even the future generations would not be able to pay back the debts. Telugu Desam government borrowed loans to the tune of Rs. 26,000 crore per annum. The YSRCP government is borrowing Rs. 1,13,112 per year. Sad to see Andhra Pradesh like this.”
