State’s debt to touch 1 lakh crore by 2010

Nobel Prize winning Economist Milton Freidman once famously remarked of subsidies that “there is no free lunch.” Well, the bill for state’s never ending scheme of subsidies is soon to be tabled. And the figure is a whopping Rs. 1 lakh crore. Massive irrigation projects, subsidies on rice, gas, vegetables, pulses, education, electricity and housing have drained the exchequer and placed an immense burden on the generations of the future. While this should have been a major electoral issue, it surprisingly has not even made it to the footnotes of this campaign. And to make matters worse politicians continue to promise more free lunches to the masses. It is by now a given that most of the promised subsidies simply cannot be met. Even PRP’s founder Chiranjeevi remarked that the state would need more than the US’s budget to meet the poll promises (of the TDP). Having said that Chiranjeevi;s list of poll promises are no less ambitious. As regards the Congress it has already began scaling down allotments for irrigation projects (cut by Rs 2540 crores), housing (reduced by Rs. 840 crores) and agriculture (reduced by Rs. 855 crores).
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