45 lakh people in Andhra Pradesh currently avail of the social security pension scheme of Rs 200 per month earmarked for those who are below the poverty line.
Chandrababu Naidu is now all set to hike it to Rs 1000 per month as part of his election promises. But officials are seriously against this move as it would mean an additional burden of more than Rs 5500 crore to the exchequer.
As of now, the scheme costs the government around Rs 1100 crore per anum. Naidu’s move would now take the expenditure to Rs 6600 crore annually.
Currently free power to farmers in Andhra Pradesh would account for Rs 2200 crore per anum which makes it the highest expenditure for the government followed by Rs 1200 crore for rice subsidy.
Now Naidu’s pension scheme is about to become the biggest burden for the government.
This is precisely the same kind of mistake the UPA government did in its second term when it allotted huge chunks of money to Mahatma Gandhi Rural Employment Guarantee Scheme and other programmes.
The economy at that point in time was doing well. But now, Andhra Pradesh is in serious need of capital and such populist measures would put the State back a long way.
No wonders the economists are angry with Naidu!
