Former Chief Minister and YSRCP chief YS Jaganmohan Reddy lamented that during the five year period, 2019-24, the then opposition parties TDP and JSP continuously lied that the then Government’s policies were resulting in unchecked growth in liabilities and that, the Capital expenditure in crucial sectors was negligible and that, the State Government revenues were growing at a slower pace indicating economic slowdown.
Moreover, he recalled that the TDP and JSP committed to the electorate that they would ensure that the State Government revenues grow very rapidly and that State debt would grow at a very slow pace, in their Government. However, he alleged that a mere glance at the performance of the TDP alliance Government on the fiscal front, exposes their failures.
Quoting from the CAG report, he said that during the financial year 2024-25, the year-on-year growth of State Government’s own revenues (including tax revenues and non-tax revenues) was only 3.08%. This is with respect to the fiscal year during which provisional estimates of the Central Government for India’s GDP growth during 2024-25 is 9.8% and the corresponding growth of Central Government revenues is 12.04%.
However, if AP’s economy is really growing at a pace of 12.02% as falsely claimed by the TDP alliance Government, Jagan wondered that why would the State Government revenues growth be as low as 3.08%?
“I am sure, many would have expected that, during the current fiscal year 2025-26 there would be some level of recovery and that the State revenues would demonstrate a good growth over the already subdued revenues during 2024-25. However, during the first four months of this fiscal year, the year-on-year growth indicates continuity of the same distress”, he said.
He recalled that Goods and Service Tax and Sales Tax reflect consumption and the aggregate of the GST revenues and Sales Tax revenues were lower during the first four months of this Financial year when compared with the corresponding period last year, the performance during which was already subdued.
“If we take into consideration, the CAGR of revenues over the first four months of the two year period 2023-24 to 2025-26, the situation is even more distressing with the State’s own revenues growing at only 2.39%, when compared with a figure that should normally have been around 10%”, Jagan added.
Another aspect is the State debt. “Even if all categories of debt are taken into consideration i.e. public debt, public account, State Government guaranteed PSU debt and non-State Government guaranteed PSU debt, the growth of liabilities during the five year period 2019-2024 is Rs. 3,32,671 crores”, he said.
However, the former Chief Minister pointed out that the aggregate liabilities contracted during the first 14 months of the TDP alliance Government is worryingly high at Rs. 1,86,361 crores (56% of what the previous Government borrowed over a five year period). With revenue growth being very low and debt increasing at astronomical rate, the @ncbn alliance Government must seriously rethink on their Governance model leading to rampant corruption prevalent at all levels, he added.