The biggest challenge for the Y S Jagan Mohan Reddy government in the coming days will be mobilization of financial resources for the implementation of various welfare schemes he had promised in his manifesto before the recent elections.
Jagan government is going to present its first full-fledged budget in the first week of July, when the assembly session commences.
He is holding meetings with officials to discuss the resource mobilization for the implementation of his Nava Ratnalu (nine promises).
Though he could immediately announce implementation of some schemes like YSR Pensions and increase of salaries to Aasha workers, they have not caused much burden on the state exchequer, because most of the money on these schemes comes from the Centre.
The real problem comes when he wants to implement other major developmental works like roads, irrigation projects etc.
What is more challenging is the implementation of prohibition in the state which would bring down the excise revenue to a huge extent.
Secondly, there is no income from infrastructure projects and real estate in the form stamps and registration duty and property tax, as the works have come to a grinding halt.
There are no efforts made so far to boost the industrial sector as well. These will bring down the revenue to a large extent.
So, finding money to implement welfare schemes will be a big task. Finance minister Buggana Rajendranath Reddy said the budget would be around Rs 2 lakh crore.
“It will be a practical, honest and frugal budget,” he said, indicating that there would be large scale austerity measures in the budget presentation.
He said the Jagan government will definitely implement all the promises made in the manifesto, as they were made after a careful study of the financial implications.
“They are not impossible to implement for us,” he said.
