Faced with a fund crunch, the Andhra Pradesh government led by Chief Minister Jagan Mohan Reddy is planning to raise around Rs 1,000 crore via contributions from different sources, under an initiative dubbed 'Connect-to-Andhra'.
Funds that are obtained in this manner will be utilised mainly for the 'navaratnalu'; a list of nine welfare schemes Jagan had made promised to implement, which is widely believed to have taken him to power.
According to reports, besides philanthropic funding, the government is also eyeing Corporate Social Responsibility (CSR) funds of companies. The Smart AP Foundation, which did similar work under the Telugu Desam Party (TDP) government, may get rebranded as 'Connect-to-Andhra'.
Additionally, media reports suggest that the state government may set up a 'Section 8 company' for the purpose, under the Companies Act, 2013, which is intended for the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity and protection of the environment, among other objectives.
The promises under 'navaratnalu' include increasing monthly old-age pensions to Rs 3,000 per head, besides farmer welfare schemes like Rythu Bharosa and healthcare schemes like Aarogyasri.
Rough estimates by economic experts put the cost of the nine welfare schemes at anything close to Rs 60,000 crore, which will heavily burden the already fragile exchequer.
Additionally, the YSRCP government is also attempting to bring in phased prohibition for Andhra Pradesh, which will decrease the excise revenue that the state receives.
One of the major promises made by YSRCP during its election campaign, the government plans to implement this in a phased manner and ultimately confine the sale of liquor to only five-star hotels.