Ever since Telangana has been carved out as the new state along with Hyderabad, it is common fact that the successor state of Andhra Pradesh is mired in the neck-deep financial troubles. Given that Hyderabad is the major source of revenue generation, which accounts to 70% revenue of total state, AP remains cash-strapped soon after its existence as new state.
According to reports, the government of AP has a revenue deficit of Rs 16,000 Crore and fiscal deficit of Rs 20,000 Crore in the current financial year. Above all, given that Chandra Babu Naidu has made a poll promise to waive off all farm loans, Dwacra loans, this is going to have an additional burden of Rs 43,000 Crore. With RBI acting tough on reschedule of loans by going back on its word, TDP-led government has to shell out whopping Rs 43,000 Crore as one-time payment which is almost impossible.
The big question is how TDP is going to tackle this situation? Well, Mr Naidu does know the ground realities and does have a plan of action in force. Besides exploring ways to mobilise required funds and increasing revenue, We hear that AP government has decided to stop all the schemes introduced by previous governments and likely to replace a few of them with Chandra Babu Naidu’s previous schemes like Deepam (LPG Connections to women), Aadarana which were successfully implemented between 1995 and 2004 with little modifications.
On flip side, AP government is leaving no brick unturned to fulfill its poll promise to waive off all the loans. Already Chief Secretary IYR Krishna Rao has written another letter to RBI explaining the farmers’ distress caused by a series of natural calamities, including drought and cyclone, and making a case for rescheduling the farm loans. Meanwhile, Finance Minister Yanamala Ramakrishnudu points out that Centre government owes Rs 7000 Crore as Central Sales Tax Compensation and admitted that state Government is looking out at other possible options to borrow money. However, the big question continues to be unanswered : Can AP government cover up the huge difference? That’s million-dollar question at the moment.