Andhra Pradesh faces financial crisis

By Mohammed ShafeeAmaravati 29 Dec : .

The YSR Congress Party government of Andhra Pradesh is now in its half-term.

However, in the next year, the states financial situation will pose a greater challenge than any opposition party.Y.S.The strong majority Jagan Mohan Reddy government continues to hold in the Assembly, and the fact that opposition parties have yet to come together means the Jagan Mohan Reddy-led government will not face any major political problems in the next year.The government is already in deep financial trouble and may have difficulty mobilizing resources to continue the delivery of many welfare programs.

The public purse may be further affected by additional financial obligations, such as the revision of the salaries for employees.The YSRCPs victories in both urban and rural local bodies elections, as well as its massive win in the by-elections to Tirupati Lok Sabha seats and Badvel Assembly seat during 2021 show that there is no opposition party in their vote bank.

Telkapalli Ravi, a political analyst said that Jagan Mohan Reddy appeared to be in control of both the government and party.This is contrary to the continuous media stories.

Jagan (48 years old) is expected to seek a second term as a ministerial candidate.Ravi said, "It remains to be seen whether his plans to completely revamp the ministry cause dissent.

" Jagan has been in power since 2019, when he seized 151 seats from the 175-member Assembly.The only exception was Raghurama Krishna Rajus revolt.

Jagan held a strong grip on the party, despite the problems of groupism that existed in certain districts.It appears that the opposition is in complete chaos.

Telugu Desam Party, the main opposition party (TDP), could not stop YSRCP from dominating local body elections.Despite reviving the alliance, Jana Sena headed by Pawan Kalyan the actor and BJP have yet to make an impact on the ground.

Meanwhile the old Congress party is still struggling in the former stronghold.Unsavoury and unprecedented developments were witnessed in the year, as leaders from both ruling and opposition parties made verbal attacks that violated every ounce of decency.

At a press conference last month in which some YSRCP lawmakers made comments about his wife Bhuvaneswari, the TDP chief minister and ex-chief minister N.Chandrababu Naidu burst into tears.He promised to never again enter the Assembly, unless he is reelected as chief minister.Some people felt sympathy for N.T, the leader of TDP at 71 years old.Family members of N.T., the late chief minister and founder of TDP, embraced their differences.Rama Rao stood behind him.Jagan Mohanreddy claimed that the opposition leader resorted as much to comedy after feeling frustrated by the constant reversals in the hustings.Another incident was the October attack on Mangalagiris TDP state headquarters.

An unknown group, believed to be supporters of YSRCP ransacked the office in protest at the abusive language being used by Pattabhi Ram, chief minister of TDP, to lynch him.Chandrababu Naidu called for the President to take control of the state, citing the situation as a breakdown in law and order.Chandrababu Naidu retorted that opposition leaders had used abusive language against him in order to get angry and respond, leading ultimately to problems with law and order.

The year saw, like 2020, the ongoing impasse over the trifurcation and use of state capitals.To avoid any setback at the court, last month the government withdrew two laws concerning the development of three state capitals.

The chief minister however stated that he is committed to the development of three capitals.Jagan stated that he supports decentralisation in development and rejected Chandrababu Naidus idea of a super-capital model.

He also opposed Jagans grandiose plan to make Amaravati a world-class metropolis.Jagan made it clear that government doesnt have enough money to develop the infrastructure necessary to create the dream capital.

He defended his decision of building an administrative capital in Visakhapatnam by referring to the existing infrastructure at the port city.Kurnool is the former capital of Andhra.

He would like the city to be developed as the judicial capital.This will bring justice to Rayalaseemas backward region, where he and Chandrababu Naidu are from.

Jagan assured residents of Amaravati that he does not have anything against the farmers from 27 Amaravati villages who are continuing to protest the development of Amaravati as their only capital.Jagan wants Amaravati as the legislative capital.

The Jagan government still hasnt made progress in implementing the trifurcation plan even two years after it was announced.The High Court received a number of complaints against the decision and forced Jagan to reverse the law.It remains to be seen, however, if Jagan introduces new comprehensive legislation by 2022 in order to realize his goal.According to political observers, he could continue to reap the political rewards from the ongoing standoff on the issue.

The YSRCP has targeted Chandrababu Naidu as being behind Amaravati farmer protests.They also project him and TDP of north coastal Andhra, Rayalaseema to be villains in the region for opposing the shifting of capital functions from Visakhapatnam and Kurnool.

Ravi, a political analyst says that controversial decisions could be used as a strategy.Trifurcation plans could lead to regional conflicts in the next election.

Although Jagan received high marks in social welfare, it is clear that he sometimes chose wrong battles.Jagan, a fellow analyst Palwai Raghavendra, has repeatedly taken aim at Chandrababu Naidus family and picked up fights in courtrooms.

Jagan believes the latest government move regarding the cost of tickets to cinemas will do no good for Jagans reputation as it will harm the financial prospects of low-income people who are associated with this industry.It is believed that the governments decision to reduce ticket prices and to take control of the selling of tickets was an attempt by the government to harm its actors, Pawan Kalyan (and N.Balakrishna) and political opponents.Pawan heads Jana Sena.Balakrishna, who is the son of N.T.Balakrishna (TDP founder) is in charge.Rama Rao.Balakrishna, a TDP member and brother-in law of Chandrababu Naidu is also an activist "Jagan fights with all political parties in the state.Raghavendra Reddy stated that Jagan, due to his welfare activities will remain the most popular leader in the state and may win the next elections if TDP, BJP and Jana Sena do not come together by 2024.

While religion has never been a factor in Andhra Pradesh politics and the BJP is working hard to split voters on a Hindu-Christian basis, Jagan said that although it may not be an easy task for BJP to do so, he must make sure his party leadership doesnt create the opportunity for the saffron brigade of to organize this division." In 2022, the Jagan government may face a problem due to its states financial woes.

State revenues have declined due to Covid-19, which has left its coffers empty.The state has borrowed Rs 34.058 crore so far in 2020-21 against the Centres Net Borrowing Ceiling of Rs 42.472 crore for the whole financial year.At Rs 384 615 crore, the state had accumulated a staggering debt.In the past two years, the Jagan government borrowed Rs 1.27.105 crore.Other outstanding loans were also guaranteed by the government at Rs 96.500 crore.In the past two years, nearly half of these amounts were guaranteed.

Ravi stated that although there are serious challenges in mobilizing funds in the face mounting debt, it is not impossible.He noted that Tamil Nadu ranks first in the number of outstanding debts, while Andhra Pradesh and Telangana are at fourth and sixth place respectively.

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