Andhra Pradesh Government is in a severe financial crisis. The Government is resorting to never-before-heard debts in the name of populism. The previous TDP Government has taken around 1.3 Lakh Crore Rupees loans in its five years tenure.
In the twenty-five months of its tenure (Until August 2021), the state government has borrowed 2.01 Lakh Crore which indicates the seriousness of the problem. Furthermore, most of these monies are going to Vote Bank politics with zero investment towards Capital Expenditure (expenditure towards development and infrastructure).
The Government has also become notorious for sitting on the payments to the contractors. As a result, Government contracts that used to be hot cake previously found no takers. Forget about the normal contracts, the Government recently floated tenders for Amaravati High Court extension with an estimation of 30 Crore Rupees.
Only a single bid has come and that from a faceless contractor. Previously, we used to see construction majors like L&T, Shapoorji Pallonji bidding for Amaravati works. But their projects were also scrapped by the Government in the name of three capitals. So, such big companies have lost trust in this government.
The next range of contractors is worried if their bills will be cleared. It is basic common sense that Government would not sit on the bills of such major projects because any lapse would make headlines in the media. Even then, the contractors would not believe this Government.
“This is not an insult to Jagan Mohan Reddy. He anyways has no respect to lose. He is just bringing disrepute to the state and the people. Where have we come to?” Opposition TDP criticizes the Government in the harshest words.