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After winning a mammoth mandate in the just-concluded Assembly elections in Andhra Pradesh, YS Jagan Mohan Reddy faces a daunting task, as he takes over as the second Chief Minister of the State (post-bifurcation) on May 30.
With empty coffers staring at him, Reddy will have to mobilise ₹30,000-40,000 crore to honour the ‘Navaratna’ (nine gems) promises he made in his election manifesto.
Though the exact burden is yet uncertain, the promises would weigh heavily on the State’s exchequer. The ninth promise in particular — prohibition of liquor — would deprive the State of its largest source of income.
Debt burden up
The eight other promises are — financial assistance of ₹12,500 a year to farmers, plus crop insurance premium; revival of Jalayagnam (irrigation projects); Arogyasree (health insurance cover worth ₹5 lakh and covering all medical bills that cross ₹1,000); fee reimbursement; construction of 25 lakh houses; waiver of loans to self-help groups (in four phases); assistance of ₹75,000 to people (who crossed 45 years of age) belonging to BCs, SCs, STs and minority communities and ₹15,000 each to women who send their kids to schools.
Speaking to reporters in New Delhi in his maiden press conference on Sunday, Reddy said the State was running on overdraft and the debt burden increased to ₹2.58 lakh crore from ₹97,000 crore post bifurcation in 2014.
He said debt servicing, including interest payments, was at ₹40,000 crore.
Though some of the schemes would commence from the second year, majority of the these are supposed to be launched immediately.
Reddy had promised financial assistance to farmers on the lines of Telangana’s Rythu Bandhu. While Telangana is giving ₹5,000 (up from ₹4,000 till last season) in two tranches — kharif and rabi season — Reddy proposed to give ₹12,500 a year.
Telangana spent ₹12,000 crore, which will go up to ₹15,000 crore from this year on an increased slab. Andhra Pradesh, being a bigger State, would require more than this.
Similarly, loan waivers to women in self-help groups would require huge allocations. The State government would also require substantial amount of money to allocate ₹15,000 each to all women who send their kids to schools.
These three schemes and the others would require funds up to ₹50,000 crore. The YSRCP has promised to introduce prohibition of liquor in phases. “I won’t seek votes in 2024 if I fail to honour the promise,” he told reporters on Sunday.
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