Jagan Flags Fiscal Weakness in Andhra Pradesh, Contradicting Government Claims

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YSRCP leader YS Jagan Mohan Reddy has raised concerns over the fiscal health of Andhra Pradesh, citing data from the Comptroller and Auditor General (CAG) for the first half of FY 2025-26. According to Reddy, the state's own tax revenues have grown by only 7.03% year-on-year, while combined GST and Sales Tax revenues have increased by a mere 2.85%. This, he claims, contradicts the TDP-led government's assurances of rapid revenue expansion. Reddy pointed out that the compounded annual growth rate (CAGR) of the state's own tax revenues over the past two years stands at 2.75%, a far cry from the projected growth rate. He also highlighted the discrepancy between the government's claim of a 17.1% GSDP growth rate and the actual tax revenue growth rate of 2.75%. Furthermore, Reddy noted that the shrinkage of capital expenditure at a CAGR of 16% over the same period indicates deeper structural challenges. Reddy also criticized the government's claim of a 10.5% GSDP growth rate in Q1 of FY 2025-26, citing declining consumption-linked revenues as evidence of the illogical nature of this claim. He also pointed out that the state's own tax revenues grew at a CAGR of 9.87% between 2019 and 2024, closely matching the GSDP CAGR of 10.23%. This, he argued, makes the current slowdown more evident. The YSRCP leader also highlighted the rapid increase in debt under the current regime, with the government contracting borrowings of over ₹2 lakh crore, amounting to 62% of the previous YSRCP government's five-year total. The ruling TDP has yet to respond to these allegations.