A political storm has erupted in Andhra Pradesh as YSRCP strongly countered Chief Minister Chandrababu Naidu’s claims on the state’s financial health. the state’s fiscal management has intensified.
- YSRCP counters Chandrababu Naidu’s claims on state finances
- YSRCP states that capital expenditure under its tenure surpassed that of TDP
- Social sector investments increased under YSRCP, contrary to Naidu’s claims
- Debt sustainability concerns were inherited from the previous TDP government
- Revenue growth stagnated in the first seven months of Naidu’s current tenure
A political storm has erupted in Andhra Pradesh as the YSR Congress Party (YSRCP) strongly refuted Chief Minister Chandrababu Naidu’s claims about the state’s financial health. Accusing him of using selective data to mislead the public, YSRCP countered his statements with official figures, challenging his narrative on capital expenditure, debt sustainability, and revenue growth.
YSRCP stated that during its tenure (2019-24), the state’s average capital expenditure stood at ₹15,632.86 crores, exceeding the ₹13,860.60 crores recorded under TDP (2014-19), as per Comptroller and Auditor General (CAG) data. The party criticized Naidu for selectively comparing 2018-19 (TDP) with 2022-23 (YSRCP), arguing that such a narrow comparison ignores economic fluctuations and external challenges.
Dismissing allegations of reduced social sector investments, YSRCP highlighted that its government allocated an average of ₹5,224.83 crores annually—more than double the ₹2,437.43 crores spent under TDP. The party emphasized its increased funding for education, healthcare, sanitation, and urban development.
Inherited Debt Sustainability Issues from TDP
YSRCP claimed that when TDP left office in 2019, the state’s finances were already under severe strain due to fiscal mismanagement. It pointed out that during TDP’s tenure (2014-19), the compounded annual growth rate (CAGR) of liabilities was 22.63%, compared to 13.57% under YSRCP. Moreover, interest payments under TDP (15.42%) outpaced the Gross State Domestic Product (GSDP) growth rate (13.48%), putting additional financial pressure on the state.
The party also noted that during its tenure, TDP borrowed ₹31,082 crores beyond the fiscal deficit limits set by the Union Finance Commission, while YSRCP’s excess borrowing was limited to ₹2,817 crores.
Revenue Growth and Current Fiscal Stagnation
On revenue generation, YSRCP pointed out that the CAGR of Andhra Pradesh’s own tax revenues was 12.9% under TDP and 10% under YSRCP, despite the latter facing major challenges such as the COVID-19 pandemic. Additionally, citing CAG data, the party revealed that in the first seven months of Naidu’s current tenure, tax revenue growth nearly stagnated at just 0.03%.
YSRCP Urges Public to Look Beyond Selective Comparisons
YSRCP reiterated that despite fiscal challenges, its government prioritized welfare schemes, infrastructure development, and social sector investments. The party urged the public to assess financial data objectively and not be misled by selective comparisons.
