Taking debts more than the prescribed limit and giving freebies to the public could be deadly sometimes and the island nation Sri Lanks is the best example of this. The government officially declared that the nation was severely hit by the crisis and could not pay back its debts. Sri Lanka is surviving just because the other nations are doing their bit in helping it. If not the situation could be worse.
Many of us are concerned about Sri Lanka and sending our prayers. But it is a wake-up call for India too. A recent study says that a few states are having problematic situations with finance and it doesn't take much time for the states to follow the path of Sri Lanka if not addressed at the earliest.
It is an open secret that the political parties announce massive schemes to get political mileage. While implementing the same, leaves a heavy toll on the state economy and the financial situation of the state goes for a toss.
If we look at the situation in Punjab, the AAP government announced that households will get a free current up to 300 units. If they cross the limit they have to pay the full bill. The scheme is likely to put a burden of more than Rs 5,000 crores on the economy. The state is already having a problem with the economy and on top of this, another financial burden.
The list of states with problematic situations cannot be mentioned with Andhra Pradesh. The freebies continued by the state government are pushing the state into a severe financial crisis. To get money for the funds, the government is imposing taxes on every possible matter.
The other states with a similar situation are Uttar Pradesh, Bihar, and Rajasthan. At a recent meeting with the Union Government secretaries, they have reportedly urged the Union Government to make sure that there will be a cap on the debts and money spent by the states.
While the situation is not that good in the five states, Andhra Pradesh is having the worst situation. The debts and amount spent on freebies are going up. On the other hand, there is no revenue generation in the state. Big companies and big investments are not preferring Andhra Pradesh, due to the lack of facilities. On top of this, AP is in the middle of a power crisis. It's high time that the Indian government and states should start working on this.
Many of us are concerned about Sri Lanka and sending our prayers. But it is a wake-up call for India too. A recent study says that a few states are having problematic situations with finance and it doesn't take much time for the states to follow the path of Sri Lanka if not addressed at the earliest.
It is an open secret that the political parties announce massive schemes to get political mileage. While implementing the same, leaves a heavy toll on the state economy and the financial situation of the state goes for a toss.
If we look at the situation in Punjab, the AAP government announced that households will get a free current up to 300 units. If they cross the limit they have to pay the full bill. The scheme is likely to put a burden of more than Rs 5,000 crores on the economy. The state is already having a problem with the economy and on top of this, another financial burden.
The list of states with problematic situations cannot be mentioned with Andhra Pradesh. The freebies continued by the state government are pushing the state into a severe financial crisis. To get money for the funds, the government is imposing taxes on every possible matter.
The other states with a similar situation are Uttar Pradesh, Bihar, and Rajasthan. At a recent meeting with the Union Government secretaries, they have reportedly urged the Union Government to make sure that there will be a cap on the debts and money spent by the states.
While the situation is not that good in the five states, Andhra Pradesh is having the worst situation. The debts and amount spent on freebies are going up. On the other hand, there is no revenue generation in the state. Big companies and big investments are not preferring Andhra Pradesh, due to the lack of facilities. On top of this, AP is in the middle of a power crisis. It's high time that the Indian government and states should start working on this.