Re 56,000 Cr burden to AP, if YCP comes to Power

In its preliminary assessment before the election, the AP finance department estimated that it would need an additional budget of Rs 56,000 Crore to fulfill the poll promises made by YSRCP President Jagan Mohan Reddy. Which means, if YCP comes to power after results on May 23rd, state budget will require excess money to implement the poll promises. It won’t be a major change to current budget if TDP retains power, as per initial estimations.

Almost all of the schemes promised in YSRCP manifesto are in existence and they may get rename with an increase in beneficiary money. One of the major promises of Jagan Mohan Reddy – Rs 15,000 for mothers who send their kids to schools – is expected to burn a bigger hole to govt pockets. Both TDP and YSRCP manifestos promised an increase of pension amount to Rs 3000, which could cause a burden of 6400 cr to state budget.

Nine hours of free power for agriculture, Free hospitalization if the cost exceeds 1000 Rs, A price stabilization fund with Rs 3000 cr to extend helping hand to farmers and Rs 50,000 farm loan to a family depending on agriculture are some of the schemes declared in YSRCP’s manifesto. All of the aforementioned schemes are currently in existence but they may get rehashed and renamed in Jagan’s government, if he is voted to power. However, the analysts are of the opinion that there won’t be a major buden to the budget if TDP is voted back to power.

It remains to be seen how Jagan, with no prior experience in running a government, will handle this situation and from where he will get the funds from.

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