Jagan Government Under-Estimating COVID Effect?

While the World is expecting a Recession and Economic Slowdown in the next year or two, Andhra Pradesh Government seems to be not bothered. The Government has tabled a budget worth 2,24,789.18 Crore and the Government has made massive allocations to several welfare schemes.

As many as 21 Welfare Schemes are incorporated in the budget while there is no mention of how the Government will tide over the COVID crisis and pool in resources. Financial Experts say that this is a very risky step for the state especially as the Government is resorting to huge borrowings even to pay the salaries and pensions.

The state had to defer the salaries to its state for a couple of months due to the Corona Crisis and is yet to clear those arrears. Incidentally, the neighboring Telangana Government mentioned the impact of the COVID crisis in the Budget and announced a budget with caution.

Union Government also released an ordinance to cut salaries of the Prime Minister, all ministers and sitting MPs by 30% for one year in the wake of the Covid-19 crisis and also decided to suspend the MP Local Area Development Scheme (MPLADS) for two years.