Modi Govt Gives A Big Shock To Jagan!

There is no denying the fact that the YSRC government is carrying out several welfare activities in the state. The Jagan-led government has initiated new schemes like Amma Vodi, Vahana Mitra and others through which it is depositing money directly in the bank accounts of beneficiaries. Infact, the government has launched a calendar which denotes specific schemes which will be coming to effect in respective months.

It is an open secret that the YSRC government is heavily relying on debt financing for the implementation of these schemes. Incidentally, the central government has dealt a blow to the AP government and here is the backstory behind it.

Much like last year, the government of Andhra Pradesh hoped to seek debt from the central government to carry on with its welfare schemes in the state this year. YSRCP representative and Rajyasabha MP Vijayasai Reddy spoke with central finance minister Nirmala Seetharaman and requested the same.

It is heard that the AP government requested for debt amounting to Rs 42,742 crores for this financial year. But the Modi-led central government deducted the debt limit big time, given the current financial recession pertaining to Covid outbreak. The centre ordered the Jagan Govt not to request for more than Rs 27,669 crores in loans and debt. This came as a big shock to the AP government which has been hoping to carry out the welfare schemes in the state by seeking debt from the centre. If the central government continues its strict stand on state finances, YSRC government will have a hard time pooling in the resources for its schemes.