Managing the finances of middle-class families is a tough task. The majority of earnings go into debt. The family members eagerly wait for the salary to come to meet their needs. But the salary doesn't stay long as the debts and payments take a big seat. If we closely observe the financial situation of Andhra Pradesh, it is very close to middle-class families.
Like middle-class families, the state goes for debt and borrowings every month. The situation is such that employees get salaries only if the government takes loans. Recently the government took loans and the majority of the amount was cut for the previous borrowings.
As per the media reports, the state government borrowed Rs 3000 crore. But Rs 2,000 crores were cut due to the previous overdraft (OD) limits. So just Rs 1,000 crores were credited. Shockingly, the amount is not enough for the need and no one knows how the employees get salaries and benefits this month.
Experts say that it needs around Rs 5,000 crore to give salaries and other benefits every month. So the Rs 1,000 crores which were credited in the treasury is of no use and it can give only salaries to a small portion of employees.
The government cannot give salaries to a few employees as the rest of them would fight and protest. So the government is caught in a risky situation. It cannot give salaries or stay silent. It has to explore other ways to get the remaining amount so that the employees can get salaries.
This tells us the problematic situation of Andhra Pradesh and how it is in the middle of a deep economic crisis. If the government takes borrowings every month then the debate mounts up and it takes a big miracle to come out of the situation.
Like middle-class families, the state goes for debt and borrowings every month. The situation is such that employees get salaries only if the government takes loans. Recently the government took loans and the majority of the amount was cut for the previous borrowings.
As per the media reports, the state government borrowed Rs 3000 crore. But Rs 2,000 crores were cut due to the previous overdraft (OD) limits. So just Rs 1,000 crores were credited. Shockingly, the amount is not enough for the need and no one knows how the employees get salaries and benefits this month.
Experts say that it needs around Rs 5,000 crore to give salaries and other benefits every month. So the Rs 1,000 crores which were credited in the treasury is of no use and it can give only salaries to a small portion of employees.
The government cannot give salaries to a few employees as the rest of them would fight and protest. So the government is caught in a risky situation. It cannot give salaries or stay silent. It has to explore other ways to get the remaining amount so that the employees can get salaries.
This tells us the problematic situation of Andhra Pradesh and how it is in the middle of a deep economic crisis. If the government takes borrowings every month then the debate mounts up and it takes a big miracle to come out of the situation.