No aid from Centre; Jagan looking at Plan B

Andhra Pradesh’s financial position is in an alarming situation. The government of India and financial institutes such as banks and others have decided not to extend further loans and this will hugely impact Jagan’s prestigious schemes ‘Navaratnalu.’

The AP government is spending the majority of its financial resources on implementation of the welfare schemes, salaries to employees and pensions. Due to this, the state government is unable to spend money on other works. CM Jagan is said to have realised the reality of financial conditions and is looking for a plan-B.

If the YCP government is denied more loans, it will face a shortage of Rs 4000 crore and this is alone for the schemes, pensions and salaries. The financial officials have made key suggestions to the state government and it is to implement the schemes in phases to beneficiaries or part payments should be made to all. Almost all the schemes of Navaratnalu are direct cash transfers to beneficiaries.

Recently the state’s financial managers met top brass of SBI in Mumbai and sought more loans and also offered sovereign guarantee. But the SBI officials are not convinced and they too are in a helpless situation as the Union finance ministry has knowledge of the financial status of AP.

There is a criticism on AP government that the current status is due to the financial mismanagement and when Union Finance minister Nirmala Sitharaman visited the state a few days back, she reportedly expressed her displeasure to the state government over this mishandling.

The finance ministry is said to have launched a probe into the mismanagement of AP government and if they find any wrongdoing, it would invite more trouble for CM Jagan.