Telugu CMs K Chandrasekhara Rao and YS Jaganmohan Reddy have broken all political records when it comes to implementation of Cash Transfer programmes to their voters. In fact, they have competed with each other till recently. However, the scene changed dramatically. While KCR has already hinted at a realistic budget without excessive emphasis on welfare, his ally Jagan Reddy is also moving in the same direction in view of the deepening economic crisis in AP.

Political economists say that the game plan of BJP has worked effectively against the twin Telugu CMs. The Modi government has consciously stopped releasing lot of funds to both the states for over a year. Before this, the Centre has warned the states against implementing too many welfare cash transfer programmes. That would hurt the overall economy of the country. But, KCR and Jagan went ahead. AP became an all the more alarming factor because of Jagan’s 100 per cent welfare drive without any scope for development expenditure. Both Telangana and AP Ministers have criticised the Centre for not releasing sufficient funds but there is no response from Modi Circar. Clearly, BJP seems determined not to support till it gains politically in Telugu states.