Forum for Good Governance (FGG) has requested Chief Minister K. Chandrasekhar Rao to review the welfare schemes being implemented in the State, stating that ‘hyper populist polices’ of the government are leading to heavy borrowings. There is an urgent need to to review the welfare programmes to prevent the State from falling into a debt trap, it said.
“Chief Minster K. Chandrasekhar Rao is on record stating that the welfare programmes he has introduced are an example for other States to emulate. FGG appreciates some of the welfare measures being implemented in the State. At the same time, there are some schemes which are not essential and are not generating revenue. Heavy borrowing to sustain the hyper populist welfare measures is costing the economy dearly and, in the long run, may lead to disaster,” said FGG secretary M. Padmanabha Reddy said in a letter addressed to Mr Rao on Thursday.
Citing the example of countries that plunged into deep economic trouble due to the heavy populist social welfare policies, Mr Padmanabha Reddy further wrote, “Venezuela is a developing country. It has world’s largest known oil reserves and has been one of the world’s leading exporters of oil. Excessive welfare measures and poor policies of the government led to the collapse of its entire economy. Most observers cite anti-democratic governance, corruption, mismanagement of the economy, socialist, populist or hyper populist nature of the government policies to maintain political power as the causes for the collapse of Venezuela’s economy.”
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