It is known that Andhra Pradesh’s economy is in the worst of its phases and the YSRCP government has done nothing but to deteriorate the situation. However, the welfare schemes are being implemented on a regular basis through debts and Jagan started to back off from his promises slowly. Opposition is waiting for the perfect moment to pounce on his incapability to deal with the revenue and now it seems the time has come.
The Controller and Auditor General (CAG) was outraged at the revenue policy being followed by the AP state government. The report on revenue and expenditure calculations released four days ago explained many surprising things. However, the CAG said that the revenue was still declining. Compared to last year, the state government’s revenue is declining.
CAG revealed that the income that is being gained and the expenditure that has been spent has no relation to one another. The CAG mainly questioned why the allotted amount was not released even though the financial year was coming to an end and reminded that allocations for the Polavaram project were sufficient. The Department of Water Resources, meanwhile, said the allocation of projects was different from the grant-in-aid estimates.
CAG openly criticised that the Government is spending a whole lot of money in the name of public welfare programs where there were no returns and the revenue being generated from the various sectors is too low when compared to the expenditures. On the other hand, the CAG said that agricultural incomes have declined, explaining the significant decline in GDP growth. At the same time, the CAG also pointed out that 20 percent of the funds given by the central government to various schemes are diverted to the state’s welfare schemes.
Despite the fact that all states have this urge but they were suggested not to divert any funds to the welfare schemes above the 8% that was suggested. It is noteworthy that the CAG warns that the debts are also increasing and these debts are already beyond the scope of the FRMB and it is likely to increase further in the future. So, what will be Jagan’s counter action to the detailed report from CAG?