A welfare State in a world steeped in a market economy? This will be the first thought for any keen observer who attempts to analyse the political and economic trajectory of Andhra Pradesh for the last five years, given the phenomenal expenditure being incurred by the State government on a slew of welfare measures. 

The question that is on top of mind for politicians, economists and people ahead of the State assembly elections in May is: will this welfare model bring the ruling YSR Congress Party (YSRCP), led by Chief Minister YS Jagan Mohan Reddy, back to power for a second term?

The quantum of expenditure on all welfare schemes the government has disbursed in the last five years roughly matches the size of the State’s budget for two years, which shows the primacy of welfare schemes for the State government. 

A bulk of this expenditure has been disbursed under the flagship welfare programmes of the State government introduced under ‘Navaratnalu’, including YSR Aarogyasri (healthcare support); Amma Vodi (monthly financial support to school students); YSR Rhythu Bharosa (financial support to farmers); housing; and pension.

According to insiders in the YSRCP, Reddy is confident that the welfare schemes will bring him back to power, as he has been quite vocal in claiming that all welfare schemes and disbursals will be halted if the TDP-Jana Sena and BJP Front comes to power. 

Focus on investments

After completely focusing on welfare for three years of its term, the State government turned its focus on investments too last year. In the ‘Advantage Andhra Pradesh: Global Investors Summit’, organised in March last year, it received investment proposals to the tune of ₹13-lakh crore through 387 MoUs executed during the meet.

As per the claims of the government, 38 firms commenced operations in the State in January this year, and the remaining are in various stages of process. 

The opposition, however, alleges corruption, a lack of infrastructure development, and an ‘unfriendly’ business environment in its election campaign. It remains to be seen if the voters will prefer welfare over development or vice versa. 

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