It is no secret that the government of Andhra Pradesh has a dire shortage of money in the state. The government is very open-handedly spending money in a very thrift fashion, giving it away as it pleases, for some or the other purpose, instead of using it for actual development of the state. If this money were used for the development, there would have been a lot of revenue generated by now, but the government seems to be the least bit interested about that.. All that is known is that the government is taking more and more debts, irrespective of being able to repay them or not.
Now, the government is planning to take an additional debt of at least Rs. 20,000 Crores, and is currently in the process to make sure that is possible. The government has already made the necessary changes to the FRBM Act, and is drafting an ordinance for the same.
The government wishes to submit this ordinance to the Central Government for its approval, and in the case it is approved, then the government is free to take a debt of Rs. 20,000 Crores. Now that there are no Assembly sessions, the government is planning to get the Governor to approve the ordinance first. After that, the ordinance will be taken to the Central Government for its approval.
The AP government is already unable to pay salaries to government servants on time, and has been postponing the date of salaries from 1st to 5th to now 15th. Just imagine what a dire situation the government is in, when it is not able to pay salaries only!
The greatest question now is, when the state doesn’t have a proper income, and when it is not even making any efforts to increase the income somehow, how is it going to pay back all these debts? The economic condition of the state is very poor, despite which the government is behaving in the most reckless way about money, spending it unnecessarily.
The burden of all these debts will ultimately fall on the shoulders of the people of the state, who will have to face a lot of trouble when the day comes. It would be so much better if the government realised the flaws in its economic policy, and made sure that it generates income somehow.