Though already the state is facing severe financial burden with indiscriminate loans taken by the previous government, the financial challenges forcing Chandrababu Naidu government also to depend upon loans presently.
Within a month of the formation of the government, Rs. 9,000 crores were collected in the RBI auction. It collected Rs.2,000 crores on June 12, Rs.5,000 crores on June 28 and Rs.2,000 crores on July 12.
During 2023-24, YS Jaganmohan Reddy government has spent Rs 52,000 crore towards direct benefit transfer schemes. In order to implement the promises given by Chandrababu Naidu and the NDA coalition government during the elections, there are situations where another Rs.20,000 to Rs 30,000 crore need to be spent.
Chandrababu Naidu promised that he will implement some of the schemes implemented by Jaganmohan Reddy from 2019. During elections the TDP-led alliance promised they will not withdraw any of existing welfare schemes, besides assuring an enhanced cash component. The distribution of the increased pensions as part of the election promises has already started.
The government will spend Rs.3500 crores every month for the distribution of pensions. During the election campaign YS Jaganmohan Reddy said that the government needed Rs 73,440 crore if Chandrababu promised `Super Six’ schemes to be implemented.
At that time, Jagan alleged that if pension scheme is included for BCs at the age of 50, another Rs.13,872 crores to be required. Jagan said that Rs 87,312 crore will be required for the seven schemes announced by Chandrababu, and if it is combined with the already implemented DBT schemes, it will reach Rs.1.40 lakh crore.
Though Chandrababu is making hectic efforts for special assistance from the Center, such an assistance may be confined to specific projects like Amaravati capital region, Polavaram and Backward regions. But meeting expenditure towards welfare schemes improving income generation may be the only option.
Already efforts started towards attracting investments as part of income generation exercise, but it will take some time for executions of various commitments. Meanwhile, depending upon increasing debts may be the only way out.