Fiscal Fragility Unveiled: A Deep Dive into Andhra Pradesh's Economic Quandary

YS Jagan Mohan Reddy criticizes Andhra Pradesh's fiscal indicators, highlighting a weak performance according to CAG data for the first half of FY 2025-26. Revenues grew modestly, contrary to government claims of robust growth. Capital expenditure decline and rising debt further reveal structural economic challenges.

In a sharp critique of Andhra Pradesh's fiscal health, YSRCP leader YS Jagan Mohan Reddy pointed to the latest Comptroller and Auditor General (CAG) data, calling out weaknesses in the state's financial performance during the first half of FY 2025-26.

Reddy highlighted the sluggish growth in the state's own tax revenues, which rose by only 7.03 percent year-on-year, with GST and Sales Tax revenues at a mere 2.85 percent increase. This, he noted, stands in stark contrast to TDP-led coalition's promises of rapid revenue growth.

The opposition leader emphasized that while the government claims a robust 17.1 percent GSDP growth rate for FY 2025-26, the actual fiscal figures tell a different story, exposing discrepancies between projections and real outcomes. Reddy further highlighted the significant contraction in capital expenditure and rising state debt as major concerns.

(With inputs from agencies.)