Andhra Pradesh Government Is In Financial Crisis
YS Jagan led Andhra Pradesh government is in financial crisis because of its new welfare policies. The state government is now unable to pay bill payments even towards services given by private parties at government offices. The dues are pending for contract vehicles including drivers and also contract-based canteen owners in government offices in Andhra Pradesh.
As of now, only government employees’ salaries and pensions are being paid. Multiple blows to the AP economy have forced the finance department to take drastic steps. Senior officials have passed instructions to the Pay and Accounts Offices in the districts not to make payments on bills towards services rendered by contractors and individuals for the time being.
Financial crises are quite common for any state government at the beginning of the year because of pending bills but in AP it is too early to face the crisis. This was unexpected, the sudden drop in overall state revenue because of AP CM YS Jagan focussing only on welfare till now. Due to this real estate was slowed down and industrialists are not showing interest in setting industries in AP which had a severe impact on revenue collections.
The government was working on the issue to generate more revenue to continue welfare schemes without any hardships. Salaries and pensions are paid without any delay with monthly loans from several banks.