The Andhra Pradesh government, headed by YSRCP chief, and AP Chief Minister YS Jagan Mohan Reddy, has been receiving a lot of flak for its financial conditions, as the government is neck-deep in debts, and the situation is only worsening by the day.
Come August 1st, situations are expected to get worse, with the AP government required to pay salaries for state government employees, pensions for pensioners, and release money for their numerous welfare schemes. While the funds for welfare schemes are expected to be released without much problem, pensions and salaries are said to be the biggest hurdles for the AP government.
The only way the government can pay salaries and pensions is if it opts for an overdraft, but it has already exceeded its limit. According to the 15th finance commission, the AP government is allowed to take an overdraft of Rs. 4872 Crores, but given that it can’t opt for an overdraft now, it means that it has exceeded its limit by a wide margin. Given that the government is not even actively trying to increase its revenue, it is to be seen if the government will jump into action at least now and try to rectify the situation before things get ugly.