Why YS Jagan Chose The Ordinance Route To Approve Budget?

YS Jaganmohan Reddy’s decision to choose the ordinance route for the approval of the state budget predictably invited sharp criticism. Arguments floated to defend the government’s decision not to have gone for legislative scrutiny and approval for the budget estimates are specious. This is the second year in a row that the YSRCP government is resorting to the ordinance route. Last year too, the government did not convene the budget session and, instead, promulgated an ordinance for the vote-on-account for three months.

The Union government had convened the Parliament and got the budget approved. Several state governments, including the neighbouring Telangana, had convened state legislature to pass the budget despite pandemic. But, the Andhra Pradesh government opted for an ordinance for the first three months of FY2021-22.

Though the specific explanation is not given, the ruling party circles cite elections to local bodies as a pretext for going for an ordinance. But, elections to local bodies cannot in any way hamper the preparation of the budget. The top officials of the finance ministry were sick, affecting the budget preparation, claims ruling party sources. But such justification does not stand closer scrutiny as the budget-making does not solely depend on a couple of officials however important they may be. 

The ruling party sources even refer to the ensuing by-elections to Tirupati as the reason for deferring the budget. But, Telangana too adopted the budget even when the state was witnessing MLC elections and has by-election scheduled for Nagarjunasagar same time. Thus, elections or by-elections cannot be the legitimate ground for doing away with legislative approval for full or even vote on account budget.  

Sources in the YSR Congress state that the government does not have a majority in the legislative council. The TDP is blocking key legislations in the upper house. The ruling YSR congress is expected to muster a majority in the council by the end of March. Chief Minister might have decided to convene the budget session in June necessitating this ordinance to avoid political embarrassment in the upper house, claim party sources.

But, even in such a scenario, the government should have opted for a truncated budget session with an exclusive agenda of passing the full budget or vote on account. Thus, the ruling YSR Congress fails to offer a convincing explanation for deferring the budget.

The economic situation is precarious. The unprecedented emphasis on welfare schemes and the COVID-19 induced fiscal crunch make the public finances in Andhra Pradesh more fragile. Perhaps, the government intends to avoid political scrutiny of this economic mess as the budget invariably exposes the flaws in the financial management of the state government. The chief minister may prefer to buy some more time to induct reasonable stability in government finances.
   
Thus the ordinance route is preferred to avoid legislative oversight and subsequent public scrutiny of the economic situation in the state before crucial by-election to Tirupati Lok Sabha seat and elections to local bodies. 

-By Prof K Nageshwar

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