Commentators, especially middle class people, are reacting strongly to the defensive arguments made by the YCP government on the issue of colossal loans. Chandrababu Naidu also got massive loans in his time, but there was a balance between development and well-being at that time. They used to support their arguments by saying that the loans were used to develop basic infrastructure in the areas of health, education, agriculture and other sectors.
Now the situation has become quite strange. Jagan’s regime made a clever argument that it did not abuse the huge loans, but only distributed them for cash benefits given to the poor. But then, the question arises as to whether this massive social expenditure has contributed to raising the standard of living and the spending capacity of the poorest sections in a significant way.
Sections of the middle class, which make up the highest-paying segment in taxes, are particularly concerned about how the YCP government has tried to defend its huge loans. While the ultra rich default to the banks and get by with it, the poorer sections receive enough cash benefits from governments not to work. Ultimately, it is the middle class segment, employees and small businesses that suffer.
If the government continues to give huge loans to provide free cash benefits to the poor, then how should it be repaid. The government itself claims that revenues fell 3.37% in 2019-2020. The arguments of the YCP have undoubtedly raised greater concerns than ever before about the economic situation and state debts among the population.