Money must circulate effectively—from the government to people, then to the market, and back to the government through taxes. This creates economic momentum.
Over the last five years, despite its flaws, the YSRCP government ensured money flowed into people’s hands through welfare schemes.
CM YS Jagan deposited funds directly into citizens' accounts every month. However, while he prioritized welfare payouts, basic infrastructure like roads was neglected, leaving people disillusioned.
In previous years, Amma Vodi funds for school fees were disbursed in January, coinciding with Sankranti. This influx of money spurred economic activity- crowded clothing stores, packed cinemas and overall festive cheer.
This year, however, the coalition government postponed Amma Vodi to the next year, dampening the festive spirit.
Even Telugu Desam Party supporters acknowledge the absence of Amma Vodi hurt Sankranti celebrations. Clothing and movie businesses reported lower footfalls, as people lacked disposable income.
The coalition government’s policies now emphasize infrastructure development, but there is no alternative mechanism for putting money into people’s pockets.
Real estate remains stagnant, registrations are slow, and government claims of new projects inspire little trust.
Without synchronized policies balancing welfare and development, economic recovery appears distant.
The recent reports of poor GST contribution from Andhra Pradesh when compared to the months previous years emphasize a dwindled economic activity in the state.
