One of the many election promises given with only one aim of coming to power is loan waiving of farmers Now that has become a huge stone around Chandrababu Naidu’s neck To pay the loans and the credits in the first two phases had become a burden

60 years ago came a film Appu chesi pappu kudu (Eat food by taking credit). In that film, there’s a character who takes credit from everywhere to lead a luxurious life. He doesn’t see the amount of interest when he takes the credit. If there’s someone giving credit then he doesn’t bother about the interest. This is quite similar to what is happening in the Chandrababu Naidu government. What Chandrababu knows is to take credits wherever possible and keep paying the interest.

One of the many election promises given with only one aim of coming to power is loan waiving of farmers. Now that has became a huge stone around his neck. To pay the loans and the credits in the first two phases had become a burden.

Now the time has come to pay for the third phase. He doesn’t know what to do and is in search of credits. He has paid Rs 11,027 crore in the two phases and he now has to pay Rs 3600 crore in the third phase and that has become a problem now.

The treasury is empty. On top of that, there are extravagant expenses. Recently the income dropped due to the implementation of GST. At the same time there’s the need to pay loans. And the state government is looking for people who can give credit.

It contacted International banks and companies, but with no result. Even if they give, the rate of interest is too high. Unable to find any means, the government approached the Reserve Bank. But if the Reserve Bank could give a loan, it could only give within the limits of FRBM. But the state has crossed the credit limit of FRBM. So now the government does not know what to do.