The existing Coronavirus epidemic threat is having a double impact on the AP government. As revenue generation came down within the state, the government initially put lots of hopes on the Central devolutions and grants. During his previous visits to Delhi, CM Jagan discussed this with Prime Minister and Home Minister as well. YSRCP MPs and Ministers also spoke confidently of Central assistance. But now, after COVID-19 impact, there are no hopes any longer about the Centre likely to give enough funds for AP.

As per the official estimates, AP was expected to get Rs. 60,000 cr from the Centre. Latest reports say that AP got only one-third of this from the Centre. This is making the government’s task very difficult to manage the state finances. Already, thousands of crores loans were taken last year. Getting new loans is becoming difficult. On the other hand, the state revenue is falling far below the estimates. The revenue from sales tax, motor vehicles taxes and registrations has fallen even lesser than that during the  2018-`19. State collections were shown as higher at Rs. 30,000 cr compared to last year. But, a good amount of this came under bank loans. Analysts say AP financial situation is slipping from bad to worse fast.