This COVID19-induced-lockdown has caused massive economic suffering for the Andhra Pradesh and everything has turned out as a mess in the state. Now, the state treasury is just letting the funds go in the name of welfare schemes and there is no incoming of any amount to the treasury by any means.
Already Jagan has promised that 80% of the budget will be spent on his welfare schemes known as ‘Navaratnalu’. Now, in this critical situation, the center gave a major shock to Jagan’s government. Finance minister at the centre, Nirmala Sitaraman announced that due to the severe economic crisis, no new welfare scheme will be implemented by the center for a year.
As the Center took a major back step in this freebies issue, many states are confused about their future prospects. Some settled states like Telangana are undisturbed by this announcement but it shook the AP government big time. About 80% of every rupee is being sent to the welfare schemes by Jagan and this could be a major challenge for him to continue these schemes throughout his tenure.
Now, the budget that is going to be presented in a week is going to be crucial for the YSRCP government as the economic condition is very critical in the state.