New Delhi: Getting the baton of power from the Samajwadi Party (SP) supremo Mulayam Singh Yadav, the youngest Chief Minister of Uttar Pradesh Akhilesh Yadav’s biggest challenge is to bring the abysmal economic growth of the state back on track. Going by the promises made in the SP manifesto, Akhilesh’s attempt to fulfill those assurances might have a negative impact on the present economic status.

Experts say, UP already has dues of Rs 2.5 lakh crores as per the last financial year records and addition of extra subsidy might further lead to economic slowdown in the state. UP is the only state in the country to have highest debt.

According to the figures provided by the Reserve Bank of India (RBI), 75 percent of the Gross Domestic Product (GDP) is spent on the payment of dues and emoluments to state employees. In such a situation the state exchequer is not in a condition to bear the burden of the SP’s commitments like exemption of electricity bill for farmers and distribution of pension on large scale. It is believed that this would add on an extra burden of Rs 66,000 crore.

The general secretary of the Federation of Indian Chambers of Commerce and Industry (FICCI) and former economic advisor to the Ministry of Finance Rajiv Kumar warned that the SP should not at all consider giving free services to the masses.

Talking to Dainik Jagran Kumar said, “If the SP wants to bring economic reforms in the state, it has to follow the corporate model of Gujarat. Exemption from paying bills and pensions would lead to economic slowdown and would negatively impact overall investment by the private players. For a massive state like UP the development is not at all possible without the intervention of private firms.”