The White Paper released by YCP Government on the financial position of state has been sending shivers down the spine of every Andhrite. In the past five years, Financial Crisis has only got deepened with huge borrowings from various financial institutions and mismanagement of available funds.
Previous Government led by Chandrababu Naidu failed miserably in investing the funds borrowed in the sectors which fetch good returns. Diversion of funds borrowed through Corporations was another reason behind the present financial mess.
Poverty has decreased during the period 2004 to 2009 when YSR was the chief minister of AP. The Gross State Domestic Product (GSDP) of AP was better in those 5 years. Although Agriculture & its related sectors shown growth in the past 5 years, Growth Rate of other sectors slipped to a new low because of poor governance and corruption.
Right now, Debt of AP is estimated to be Rs 3,62,375 crore. Which means debt on each Andhrite could be anywhere around Rs 42,500. If the loans borrowed through SPVs are included, Every Person in the state have a liability of anywhere around Rs 1 lakh.
Slipping into Over-Draft Mode every month could affect the rating of Andhra Pradesh. How does CM Jagan overcome this terribly situation?