Chandrababu's Two Years: ₹3.40 Lakh Crore Debt & Broken Guarantees
Andhra Pradesh Two-Year Governance Audit Raises Questions Over Welfare Delivery, Debt and Fiscal Management
Amaravati, June 2026: A detailed audit of the Andhra Pradesh government's performance over the first two years of its tenure has sparked fresh political debate, with allegations of unfulfilled welfare promises, rising debt, and the discontinuation of several social welfare initiatives.
The report, compiled using Andhra Pradesh budget documents, NABARD data, Ministry of Statistics figures, and publicly available scheme records, examines the period between June 2024 and June 2026 under the coalition government headed by Chief Minister Chandrababu Naidu.
Welfare Promises Under Scrutiny
Ahead of the 2024 Assembly elections, Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan had unveiled a series of welfare guarantees under the coalition's "Super Six" programme. The guarantees included specific financial benefits and implementation timelines beginning June 2024.
According to the audit, several of the promised schemes have either not been implemented or have been partially executed during the first two years of the government's tenure.
The report claims that:
- Adabidda Nidhi, which promised ₹1,500 per month to eligible women aged 18–50, has not been implemented.
- Nirudyoga Bhruthi, promising ₹3,000 per month to unemployed youth, is yet to be launched.
- 50 Years Pension Scheme, which proposed pensions for BC, SC and minority women above 50 years, has not been introduced.
- Beneficiaries under existing pension programmes reportedly declined from 66.34 lakh to 60.11 lakh, a reduction of 6.23 lakh pensioners.
The audit also alleges that Talliki Vandanam benefits were not distributed in the first year and that payments in the second year varied across beneficiaries, while several eligible students reportedly did not receive assistance.
Similarly, Annadata Sukhibhava, which promised ₹20,000 annually to farmers in addition to the PM-KISAN benefit, was reportedly not implemented during the first year and was partially rolled out in the second year.
Concerns Over Welfare Infrastructure
The report highlights challenges in the healthcare sector, claiming that dues amounting to ₹3,746 crore remain pending under the Aarogyasri scheme.
It further alleges that:
- Some network hospitals have restricted admissions of Aarogyasri beneficiaries due to pending payments.
- The Aarogya Asara scheme has been discontinued.
- The Family Doctor Programme introduced by the previous government has been withdrawn.
- In the education sector, the report notes the discontinuation of certain reforms introduced during the previous administration, including the CBSE curriculum transition and the Nadu-Nedu infrastructure programme.
- The audit also claims that government school enrolment declined significantly over the two-year period.
Agricultural Sector Challenges
The report argues that farmers faced considerable difficulties during the period under review.
Among the key concerns raised are:
- Discontinuation of the state-funded free crop insurance programme.
- Withdrawal of the zero-interest crop loan scheme.
- Crop losses across major crops such as paddy, maize, tobacco and groundnut.
- Delays in compensation and input subsidies following crop damage.
- The report cites official data indicating 393 farmer suicides and 2,472 deaths among agricultural labourers during 2025.
- State Debt Reaches ₹3.40 Lakh Crore
- A major focus of the audit is Andhra Pradesh's fiscal position.
According to the report, total borrowings over the past two years have reached approximately ₹3.40 lakh crore, comprising:
- ₹1.81 lakh crore through budget borrowings.
- ₹1.13 lakh crore through public sector enterprise guarantees.
- ₹47,387 crore linked to Amaravati capital development.
- The report alleges that the state exceeded its Net Borrowing Ceiling by ₹17,953 crore during 2024-25.
It further notes that the fiscal deficit stood at 5.08 percent of Gross State Domestic Product (GSDP) during the government's first year, compared with an average of 4.11 percent during the previous administration.
The fiscal deficit as a share of expenditure reportedly increased from 26.52 percent in 2023-24 to 32.55 percent in 2024-25 and reached 39.74 percent during the first ten months of 2025-26.
Category Pending Amount
Aarogyasri hospital dues ₹3,746 crore
Fee reimbursement ₹6,930 crore
Vasati Deevena ₹3,900 crore
Crop insurance Over ₹3,000 crore
Employee dues ₹35,000 crore
The report also points to a decline in Self-Help Group (SHG) credit linkage, citing NABARD data showing a reduction from ₹49,626 crore in 2023-24 to ₹30,698 crore during the first ten months of 2025-26.
Employment and Economic Indicators
According to Ministry of Statistics data cited in the report, Andhra Pradesh's unemployment rate stood at 8.2 percent, compared to the national average of 5.2 percent.
The audit also alleges that the government's annual job calendar was not implemented and raises concerns over certain land allocations made to private companies in Visakhapatnam.
Political Reactions Expected
The findings are likely to become a major political issue as the state approaches the midpoint of the coalition government's tenure.
While opposition parties have used the report to question the government's welfare and fiscal performance, the ruling coalition has maintained that it inherited significant financial challenges and has prioritised long-term development and infrastructure investments alongside welfare delivery.
The government has not issued an official response to the specific claims contained in the audit report at the time of publication.
Source: Andhra Pradesh Budget Documents (2024-25, 2025-26), NABARD SHG Credit Data, Ministry of Statistics and Programme Implementation, and publicly available scheme disbursement records.
