Andhra Pradesh Government is on a freebies Launching Spree and this seems to be taking a heavy toll on the State Exchequer. With the Economic Slowdown and no new means of wealth creation, Andhra Pradesh has no other way except to resort to new loans.
In this fiscal, the state government had accumulated new loans of 25000 Crore. On average, the State is taking loans worth 3000 Crore every month. In this fiscal, only through the auction of Security Bonds by RBI, Andhra Pradesh has taken 25,104 Crore loans and in the same period, Telangana took loans worth 15,300 Crore.
YS Jagan Mohan Reddy used to a bitter critic of Chandrababu Naidu on the financial indiscipline but the former is running the show only with loans. The State Government is resorting to massive borrowings for the Rythu Runa Mafi and with major schemes like Amma Vodi coming up, the worse is yet to come.
Almost all the infrastructure projects were brought to a standstill to ensure funds for the freebies. Its high time, the governments apply brakes to the welfare schemes and maintain financial discipline. Or else Andhra Pradesh will very soon go bankrupt.
