Finance – Andhra Pradesh Faces Fresh Political Clash Over State Revenue and Debt Claims
Finance – Andhra Pradesh’s financial position has once again become the centre of political discussion after senior YSR Congress Party (YSRCP) leader and former Finance Minister Buggana Rajendranath questioned the fiscal performance of the N. Chandrababu Naidu-led coalition government, citing official financial indicators to support his criticism.
According to Rajendranath, Andhra Pradesh is witnessing a significant revenue shortfall during the 2024-25 financial year. Speaking in an interview, he alleged that the state’s revenue deficit has reached Rs 60,285 crore, making it one of the most financially stressed states in the country. He argued that the government’s handling of public finances has weakened revenue growth and affected overall fiscal stability.
Former Minister Questions Revenue Performance
Rajendranath claimed that the state’s tax collection growth has slowed considerably, stating that Andhra Pradesh recorded only 1.97 per cent growth in tax revenues. Referring to these figures, he said the state now ranks behind several smaller states in terms of tax revenue performance. He maintained that the financial condition is evident to ordinary citizens and suggested that public opinion reflects growing concern over the economy.
The senior YSRCP leader also rejected allegations made by the ruling coalition before the Assembly elections that the previous Y.S. Jagan Mohan Reddy government had left the state’s finances in poor shape. He asserted that financial data published by institutions such as the Comptroller and Auditor General (CAG) and the Reserve Bank of India (RBI) present a different picture from the government’s political narrative.
Comparison With Previous Administration
Drawing comparisons between successive governments, Rajendranath stated that Andhra Pradesh’s own tax revenue has shown negative growth of 3.22 per cent between the 2024-25 and 2025-26 period. He argued that the previous YSRCP administration managed to maintain fiscal discipline despite the economic disruption caused by the Covid-19 pandemic.
According to him, the fiscal deficit remained within an average range of 2.5 to 2.6 per cent during the previous government’s tenure. He further alleged that the current administration has borrowed nearly Rs 3.4 lakh crore within two years, a figure he used to question the coalition government’s financial management strategy.
White Paper Debate Continues
Rajendranath also criticised the government’s reliance on a White Paper presented in the Assembly to defend its financial record. He argued that a White Paper serves as a political document rather than an official statutory record and questioned its use as the primary basis for responding to financial criticism.
He further alleged that different financial figures have been presented in different forums, creating confusion over the state’s actual fiscal position. According to him, official responses should rely on recognised financial reports instead of political documents.
Debt Figures Become Political Flashpoint
The former Finance Minister stated that the YSRCP government accumulated approximately Rs 3.3 lakh crore in debt during its five-year term. However, he argued that the borrowing pace remained lower than that recorded during the Telugu Desam Party (TDP) government between 2014 and 2019 when measured through Compound Annual Growth Rate (CAGR).
By comparing borrowing trends across administrations, Rajendranath sought to challenge the coalition government’s criticism of the previous regime’s financial management.
Opposition Status and Capital Development
Apart from financial matters, Rajendranath also raised concerns regarding the functioning of the Assembly. He alleged that YSRCP legislators, including former Chief Minister Y.S. Jagan Mohan Reddy, were not provided adequate opportunities to present their views during legislative proceedings. He reiterated the party’s demand to be recognised as the Principal Opposition, arguing that its electoral support warrants appropriate representation.
The former minister additionally defended the YSRCP government’s decentralisation policy on capital development. Referring to the recommendations of the Sivaramakrishnan Committee, he said the earlier administration favoured decentralised governance instead of concentrating administrative functions in a single location. He also expressed concerns over environmental and geographical challenges associated with the proposed capital site while maintaining that initiatives such as village secretariats and district reorganisation were designed to improve access to public services across the state.