Andhra Pradesh's Fiscal Health Under Scrutiny Ahead of Elections
Andhra Pradesh's fiscal health is under scrutiny as the state prepares for its Assembly elections on May 13th. The state, which enjoyed a revenue surplus for several years before Telangana's formation in 2014, has struggled to balance its books since then.
The current YSR Congress Party (YSRCP) government, led by Y.S. Jagan Mohan Reddy, faces challenges from the National Democratic Alliance (NDA) and the Congress-led INDIA bloc. The state's fiscal deficit has remained within the permissible limit only once under Jagan Mohan Reddy's rule, in 2021-22. This is due in part to the COVID-19 pandemic, which strained most states' revenues.
The widening fiscal deficit has increased the state's debt burden. The outstanding debt has never fallen below 30% of GSDP during the current regime. Despite this, the state government is implementing several welfare schemes, including a guaranteed monthly pension and increased financial assistance to farmers.
The opposition parties have also promised a range of welfare measures, including financial assistance to farmers, free cooking gas cylinders, and unemployment allowances. The upcoming elections will be a test of the YSRCP's performance and its ability to manage the state's finances.
Andhra Pradesh's fiscal health is under scrutiny ahead of the May 13th Assembly elections.
The state has struggled to balance its books since Telangana's formation in 2014.
The YSRCP government faces challenges from the NDA and the Congress-led INDIA bloc.
The state's fiscal deficit has remained within the permissible limit only once under Jagan Mohan Reddy's rule.
The widening fiscal deficit has increased the state's debt burden.
The state government is implementing several welfare schemes, including a guaranteed monthly pension and increased financial assistance to farmers.
The opposition parties have also promised a range of welfare measures.
The upcoming elections will be a test of the YSRCP's performance and its ability to manage the state's finances.