Centre Lays Eagle Eye On AP Finances!

The ‘Nava Ratnalu’ is one of the prime reasons that voted YCP to power in the 2019 elections. AP CM YS Jagan is toiling very hard to implement the freebies despite AP’s financial crisis and now the state is going through a serious hard time. As banks have knowledge of AP’s financial position, they are reluctant to offer more money.

In order to borrow money from banks at all costs, the YCP government has floated corporations and regarding the same Narsapuram MP RRR has complained to the government of India too. Having received the complaint, the government of India has laid a special focus in AP and its finances. The Centre has learned that AP is diverting the money that was transferred in the form of grants and also the YCP government is not depositing its due share in banks.

With AP’s position looking very critical, the Centre has laid an eagle eye. Freshly, the Centre has asked the AP government to open a bank account for individual schemes and credit the state’s quota in it. But the AP government did not initiate this process and so the Centre has sent clear directives.

Realising that pressure is mounting the AP government has called a meeting with the banks. CM Jagan led finance department officials and bankers met recently and in this meeting the YCP government came up with a strange proposal. Just like the Over-Draft (OD) facility of RBI, the Jagan government asked the banks to provide OD option. This means the grant that the Jagan government was supposed to credit, was asked to pay by the banks.

Shocked by this proposal, the bankers have made it clear that they can’t accept this. Firstly the banks are seriously concerned that when the government is unable to credit the grants, how will it repay the Over-Draft. The banks are also sceptic that whether the state government will transfer the Centre’s grants because the Centre directly credits the money in state’s treasury and after that the complete rights stay with the state government.

This is a spot of bother for the Jagan government and it really needs to act fast else the situation might slip out of hands and the Centre will also be helpless in AP’s financial status.