Archive · 16 Nov 2025
Jagan Alleges Low Revenue Growth and Rising Debt Under Naidu Government
The leader of the opposition, Jagan, is saying that the state's money situation isn't as good as the people in charge, led by Chief Minister Naidu, are claiming.
He looked at official numbers from the CAG, which is like a government watchdog.
Jagan pointed out that the money coming into the state from taxes isn't growing much.
He also said that the money being spent on building new things, like roads and schools, has actually gone down.
Jagan also claims that the government is borrowing a lot of money very quickly.
While the government says the state is getting richer very fast, Jagan believes the numbers don't match and that the public might be misled.
He compared it to when he was in charge, saying that money grew more steadily then.
Y.S. Jagan Mohan Reddy criticizes the Chandrababu Naidu-led government for low revenue growth and rising debt.
CAG figures show state government revenue growth was only 7.03% year-on-year in the first half of FY 2025-26.
GST and Sales Tax revenue growth was a mere 2.85% in the same period, and CAGR over two years is 2.75%.
Capital expenditure has shrunk at a CAGR of -16% over the last two years, according to Jagan.
Jagan alleges the government has borrowed Rs. 2,06,959 crores, a significant amount compared to the previous five-year period.
- Who
- Y.S. Jagan Mohan Reddy, leader of the YSR Congress Party, and the current TDP-led coalition government in Andhra Pradesh.
- What
- Jagan Mohan Reddy has criticized the current government's fiscal performance, alleging low revenue growth, shrinking capital expenditure, and rapidly increasing debt, contradicting the government's claims of economic progress.
- When
- The criticism refers to data from the first half of the financial year 2025-26 and compares it with previous periods, including the YSRCP's five-year tenure.
- Where
- Andhra Pradesh, India.
- Why
- Jagan Mohan Reddy alleges that the current government's performance on fiscal indicators is poor and that its claims of economic growth are misleading, based on CAG figures.
Y.S. Jagan Mohan Reddy (YSRCP)
Andhra Pradesh Government (TDP-led coalition)
Revenue Growth
Y.S. Jagan Mohan Reddy (YSRCP)
State government revenues have experienced discouraging growth, with own tax revenues growing at only 7.03% year-on-year in the first half of FY 2025-26. GST and Sales Tax revenues saw a mere 2.85% increase. Over two years (2023-24 to 2025-26), state's own tax revenues grew at a CAGR of only 2.75%, contradicting claims of stupendous economic growth.
Andhra Pradesh Government (TDP-led coalition)
The government claims a GSDP growth of 12.02% in FY 2024-25 and targets 17.1% in FY 2025-26, which should correspond to tax revenue growth of 12%-15%.
Capital Expenditure
Y.S. Jagan Mohan Reddy (YSRCP)
Capital expenditure outlay has shrunk at a Compound Annual Growth Rate (CAGR) of -16% over the last two years.
Andhra Pradesh Government (TDP-led coalition)
Not directly addressed in this article, but implied to be part of the government's vision despite fiscal concerns.
Debt Levels
Y.S. Jagan Mohan Reddy (YSRCP)
The TDP alliance government has already availed and contracted to borrow Rs. 2,06,959 crores, which is 62% of what the previous government borrowed over a five-year period.
Andhra Pradesh Government (TDP-led coalition)
Not directly addressed in this article, but implied to be a consequence of the claimed economic growth and development initiatives.
GSDP vs. Tax Revenue Growth Discrepancy
Y.S. Jagan Mohan Reddy (YSRCP)
Jagan claims the government's projected GSDP growth of 10.5% in Q1 FY 2025-26 is illogical given the low revenue growth, contrasting it with the 2019-2024 period where revenue growth (CAGR 9.87%) was in line with GSDP growth (CAGR 10.23%).
Andhra Pradesh Government (TDP-led coalition)
The government claims GSDP grew at 10.50% in Q1 2025-26.
- Critic
- Y.S. Jagan Mohan Reddy (YSR Congress Party president)
- Target of Criticism
- N. Chandrababu Naidu (Chief Minister of TDP-led coalition government)
- Source of Data
- CAG (Comptroller and Auditor General) figures for first half of FY 2025-26
- State's Own Tax Revenue Growth (First Half FY 2025-26 YoY)
- 7.03%
- GST and Sales Tax Revenue Growth (First Half FY 2025-26 YoY)
- 2.85%
- State's Own Tax Revenue CAGR (First Six Months 2023-24 to 2025-26)
- 2.75%
- Capital Expenditure Outlay CAGR (Last Two Years)
- -16%
- Debt Availment/Contracted by TDP Govt (So Far)
- Rs. 2,06,959 crores
