GST Growth Debate: Artificial Surge or Genuine Economic Boost?

YSRCP leader Gudivada Amarnath criticizes state cabinet minister Nara Lokesh for praising Andhra Pradesh's GST growth, calling it artificial due to skewed base calculations. Amarnath argues that the growth is misleading when considering the state's fiscal history, questioning Lokesh's interpretation of the economic indicators.

In a heated political exchange, former Andhra Pradesh IT Minister Gudivada Amarnath has hit out at state cabinet minister Nara Lokesh over claims of significant growth in the state's Goods and Services Tax (GST) collections for the first quarter of 2026-27. Amarnath contends that Lokesh's celebratory remarks are based on an 'artificial growth' narrative.

According to Amarnath, the apparent 21 per cent year-on-year surge in GST for June 2026 is misleading, rooted in a distorted base effect. The YSRCP leader pointed out that Andhra Pradesh's State GST (SGST), after accounting for the Integrated GST (IGST) settlement, had suffered a negative growth of 7 per cent in the same period the previous year, thereby amplifying this year's figures artificially.

Challenging Lokesh's assertions of growth translating into jobs and investments, Amarnath highlighted that the compounded annual growth rate over two years stands at a modest 7.9 per cent, which pales in comparison to his party's previous tenure. He criticized Lokesh for hastily claiming credit without delving into the underlying data, stressing that the true economic progress warrants a more nuanced analysis.