Naidu Blames Jagan for Economic Collapse in Andhra Pradesh: White Paper Revelations

Andhra Pradesh CM N. Chandrababu Naidu accused former CM Y.S. Jagan Mohan Reddy of economic mismanagement, citing a white paper revealing significant financial losses and reduced growth rates. The document highlighted misgovernance, increased debt, and failure to undertake major infrastructure projects during the previous regime.

In a scathing critique, Andhra Pradesh Chief Minister N. Chandrababu Naidu accused his predecessor, Y.S. Jagan Mohan Reddy, of wreaking havoc on the state's economy. According to a white paper released by the AP government on Thursday, the state suffered a staggering Rs6.94 lakh crore loss due to a diminished growth rate.

The document detailed that during 2014-19, the state's growth rate was 13.5 percent, which would have generated Rs76,195 crore in revenue. Even factoring in the COVID-19 impact, an additional Rs52,197 crore in revenue should have accrued. However, the growth rate during this period reduced to 10.5 percent, three percent lower than the preceding period.

Under the heading "Misgovernance after 2019," the white paper outlined that Andhra Pradesh bore an extra burden of Rs12,250 crore from higher power costs due to short-term power purchases. Illegal sand mining and mismanagement in mineral revenue resulted in losses of Rs7,000 crore and Rs9,750 crore, respectively. The cancellation of contracts in Amravati, Polavaram, and the energy sector further exacerbated fiscal woes.

The report also highlighted inefficiencies during this timeframe, noting a Rs1.29 lakh crore loss in the power sector and Rs45,000 crore in Polavaram project delays. Repairs and damages accounted for Rs4,900 crore in losses, with a further Rs3,000 crore lost in delayed hydel power generation.

No significant new industries or infrastructure projects were initiated in the state, the white paper claimed. Central sector schemes and funds, totaling Rs6,600 crore, were left unutilized during Jagan's governance.

Regarding Direct Benefit Transfer (DBT) schemes, the paper stated that while these were intended to boost personal wealth, the state's per capita income growth plunged from 13.2 percent during 2014-19 to 9.5 percent in 2019-24.

The document also revealed that excessive borrowing due to DBT expenditures increased per capita debt. Moreover, it alleged financial mismanagement, including the diversion of funds from state institutions to AP State Financial Services Ltd.

The white paper cited a Rs1,452 crore sum from March 2024 that was not transferred from the central government to local bodies. Highlighting the mounting debt, it noted that Andhra Pradesh's debt escalated from Rs3,75,295 crore on March 31, 2019, to Rs9,74,556 crore. (ANI)