When Telangana partitioned from the Andhra Pradesh, they were left with the surplus budget while the AP had a huge deficit in their state budget. Now, after a few years, in this crucial Pandemic period, Jagan is implementing his welfare schemes without any worries but KCR is failing to conduct the COVID-19 tests effectively at the least.
Many analysts say that this is all because of the money borrowing plan of KCR who already burdened the Telangana people with 2 lakh crores. Due to this COVID crisis, the Telangana state has decided to borrow more money and for that, they revised the FPBM (Fiscal Responsibility and Budget Management) limit from 90% to 200% in the name of the corporation welfare activities.
Actually the FPRM Act was enacted in 2003 which set targets for the government to reduce fiscal deficits. Under this act, every rupee lent by KCR should be shown in the budget but the amount that took under the FPRM act for the Corporations’ welfare need not be shown in the budget. Though this, KCR is all set to get a lump sum as a loan.
Economists worry that this will keep Telangana state out of the economic balance as KCR started to create corporations only to lend money. In this COVID-19 crisis, he should look out a way generate revenue instead of borrowing money in the name of corporation which would eventually prove costly for the Telangana people at the end of the day.
So, unlike Jagan, KCR should stop giving freebies and should encourage some ventures and the people who invest capital in the state which eventually will generate him some revenue and employment in the state to set the things right and only then, everything will fall into its place.