BREAKING NEWS

Andhra Pradesh has tough task footing bill for freebies

With the series of sops announced during last two-and-half months needing a whopping Rs 50,000 crore, YSR Congress government in Andhra Pradesh faces an uphill task of raising the additional resources.

With the resource gap already at Rs 45,000 crore, the freebies announced since May 27 may further add to the burden on the public exchequer, deepening the fiscal crisis.

The YSR Congress Party (YSRCP) government announced many schemes to implement its poll promises but it has not come out with plans to mobilize the required resources.

Analysts say controversial moves like reserving 75 per cent jobs for locals in all industries, review of Power Purchase Agreements and terminating one of the contracts for Polavaram project may further affect the investment climate and impact the efforts to generate revenues.

With development of state capital Amaravati no longer a priority for the government and the works a