CAG Report Exposes AP’s Alarming Fiscal Crisis: Ex-Finance Minister Buggana

Andhra Pradesh state former Finance Minister Buggana Rajendranath strongly criticized the TDP-led coalition government, citing alarming findings in the 2024–25 provisional accounts of Andhra Pradesh published by the Comptroller and Auditor General (CAG).

In a statement, Rajendranath said the provisional data exposes the extent of financial mismanagement and the lack of fiscal discipline under Chief Minister N. Chandrababu Naidu’s leadership.

According to Rajendranath, the CAG figures reveal that the state has entered a vicious cycle of mounting debt and economic stagnation, with large-scale borrowings made without any corresponding development on the ground.

He pointed out that the revenue expenditure for 2024–25 stood at a staggering ₹2,25,889 crore, despite the absence of any significant welfare project implementation during the year—clearly indicating fiscal profligacy.

Despite the high levels of borrowing, capital expenditure had declined by ₹4,153 crore compared to the previous year—directly contradicting the Chief Minister’s claims that loans were being used to build durable public assets.

Citing the CAG report, Rajendranath noted that revenue receipts dropped from ₹1,73,767 crore in 2023–24 to ₹1,68,443 crore in 2024–25. The state’s own revenues recorded a meager year-on-year growth of just 3.08%, while non-tax revenue decreased by ₹640 crore.

During the YSRCP regime (2019–24), despite the challenges posed by the COVID-19 pandemic, the state's own tax revenues grew at a compound annual growth rate (CAGR) of 10.04%. Had that trajectory continued in FY 2024–25, own revenues would have reached ₹1,02,727 crore. Taking this as a benchmark, the loss to the state exchequer due to the present government’s short-sighted policies is approximately ₹6,500 crore.

He also highlighted a significant drop in central grants, which fell by ₹14,566 crore—from ₹34,702 crore in 2023–24 to ₹20,136 crore in 2024–25. Rajendranath asserted that this disproves the TDP’s allegations that the previous YSRCP government had failed to effectively utilize central government schemes.

“These are not just statistical deviations—they are clear signs of poor planning and lack of economic foresight,” he said. The fall in sales tax by ₹1,053 crore and the decline in revenue from stamps and registration by ₹705 crore reflect a weakening economy and sluggish public spending.

Rajendranath also pointed to reductions in allocations for crucial social sectors like education, health, nutrition, and welfare—amounting to a combined cut of ₹3,945 crore. He said this highlights the government's disregard for public welfare, despite grand claims made under the so-called ‘Super Six’ schemes. Key programs like Aarogyasri, he added, have lost their effectiveness due to the current government's lack of commitment.

He further alleged that the government has failed to deliver any visible development despite massive borrowings. Off-budget debts, he said, are rising at an alarming rate, and the state is now resorting to off-budget borrowing practices that severely undermine the constitutional framework.

Rajendranath accused the TDP government of relying on inflated figures and misleading narratives rather than addressing the underlying financial crisis. “What is being portrayed as growth is actually an increasing burden, and what is labeled development is merely a debt-driven illusion,” he remarked. He also pointed out that the government's disproportionate focus on capital city development is evidently depriving the other 25 districts of their fair share of growth.

Calling for transparency and accountability, he demanded that the government reveal the full extent of its borrowings and explain how the funds have been utilized. The public, he said, has every right to know why the debt burden is rising while development remains elusive.

Rajendranath urged the government to return to a path of fiscal responsibility, transparency, and people-centric budgeting before the financial damage becomes irreversible.