Chandrababu’s Economic Destruction in AP: Jagan’s All-Round Attack

YSRCP chief and former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy alleged that the state is witnessing “financial destruction” under the rule of Chief Minister N. Chandrababu Naidu. He said the latest CAG report clearly exposes the financial mismanagement of the coalition government.

Addressing the media at Tadepalli, Jagan questioned what benefits the recent Assembly sessions had brought to the people. He claimed that the state budget contained misleading and fabricated figures and that the CAG report has confirmed the concerns he had been raising.

Jagan said that during 2023–24, the total government expenditure stood at ₹2,36,486 crore, while revenues were ₹1,70,767 crore. The revenue deficit during the same period was ₹32,680 crore, and the fiscal deficit stood at ₹62,719 crore.

However, he alleged that after Chandrababu Naidu came to power, the situation worsened. According to him, in the first year of the current government, expenditure rose to ₹2,49,096 crore, while revenues were only ₹1,68,024 crore. The revenue deficit under the Chandrababu government increased to ₹60,285 crore.

Jagan further said that revenues have declined while spending has increased under the present government. He claimed that the revenue deficit has increased by 56 percent and the fiscal deficit by 32.5 percent after the coalition came to power.

He added that the state’s debt as a percentage of GSDP for 2024–25 is estimated at 5.89 percent, compared to 4.1 percent during the YSRCP government. Jagan said his government implemented its manifesto promises while also handling the COVID-19 crisis, yet kept borrowings within limits.

According to him, states must borrow within the Net Borrowing Ceiling (NBC) fixed by the Centre. He alleged that Chandrababu Naidu repeatedly violated this limit. Between 2014 and 2019, he claimed, the TDP government borrowed ₹29,099 crore more than the permitted limit.

In contrast, Jagan said the YSRCP government borrowed ₹12,708 crore less than the allowed limit, even during the pandemic.

He alleged that the borrowing trend reversed after Chandrababu returned to power. In 2024–25, he claimed the government exceeded the borrowing limit by ₹17,953 crore, and within 20 months, total borrowings crossed ₹3.20 lakh crore. He added that the YSRCP government had borrowed only ₹3 lakh crore during its entire five-year tenure, while the current government has nearly matched that in two years.

Jagan also accused the government of encouraging corruption and favouritism. He alleged that associates and supporters linked to the ruling establishment were involved in large-scale land deals. As an example, he claimed that land worth ₹5,000 crore in Visakhapatnam was handed over to a close relative of Chandrababu Naidu.

“If resources are being looted like this, how will the state’s revenues grow?” Jagan asked, adding that the state treasury currently does not even have the minimum balance.

He further alleged discrepancies in the government’s debt figures. While the CAG report for 2024–25 mentions borrowings of ₹81,082 crore, Jagan claimed that the government told the Assembly the figure was ₹60,485 crore.

Jagan said the YSRCP would write to the Central government, the Department of Personnel and Training (DoPT), as well as the Cabinet Secretary and Finance Secretary, seeking action over what he called misleading information presented by the state government.