The financial situation of Andhra Pradesh is an open secret now, with the fact that the state is in a huge financial crisis being public knowledge. More than a year ago, the financial prospects of AP were looking bright, with investors showing great interest in investing in the state.
However, after the YSRCP came to power 14 months ago, things turned on their head. Speaking about the issue, former Finance Minister, Yanamala Ramakrishnudu of TDP said that the state is in such a bad financial position because of the useless policies that the ruling party started.
He said that the YSRCP has taken more loans than any government in the history of Andhra Pradesh has ever taken. With the credit score of Andhra Pradesh touching a new low, Yanamala said that by the time the YSRCP ruling is over in the next four years, the interests and principal loan payments of the state would reach Rs. 1 Lakh Crore per year. At this rate, Yanamala has said that the YSRCP government will soon bankrupt the state, which will result in some very unfavorable consequences.
Even as the loan amount for Andhra Pradesh is only increasing, the government is still looking forward to taking more loans. With no national firm ready to give out loans to the AP government, the government is now planning to take loans from foreign investors.
The state of Andhra Pradesh has not been able to see good economical conditions in a long time due to various reasons. The government neither started nor completed any new projects in the state, it neither constructed a road, bridge or any other thing that would help bring in some substantial income. The government even pulled the plug off a self-funding project like Amaravati, which has only worsened the situation. The onset and widespread outbreak of Coronavirus has only intensified the dire circumstances of the financial condition of Andhra Pradesh.
The government should review all of its financial reforms at least now, and make sure that the state is in a much better position at least next year.