Y.S.Jagan had announced a plethora of welfare schemes for all of the poor of Andhra Pradesh, during his election campaign. As soon as he assumed office last year, he introduced 9 welfare schemes – Navaratnalu. These schemes include YSR Rythu Bharosa, fee reimbursement, Aarogyasri, Jalayagnam, a ban on alcohol, Amma Vodi, YSR Aasara, the Cheyutha scheme and housing for the poor.
These all schemes look glorious indeed, and it is commendable for the government to want to help the poor on such a large scale even. However, all of the expenditure of these schemes is now falling onto the shoulders of the common man.
The government of Andhra Pradesh is not in the best financial places right now, which means that the burden on the common man would be even greater. As a result, the Value Added Tax on natural resources has been increased from 14.5% to 24.5%, and the official notification has also been given.
Additionally, the VAT on crude oil has been increased by 5%, 31% on petrol, 22.5% on diesel, and an additional Rs. 4 each on petrol and diesel. The VAT on turbine fuel has also been increased by 1%.
Justifying the increase of VAT, the government said that it had to do this to increase the revenue of the state, which has been dwindling because of the pandemic. On the other hand, opposition parties are saying that it is not fair for the government to levy such heavy taxes on the common people when they are themselves suffering from half salaries, and some, with no salaries at all.