Andhra Pradesh Requires Additional Rs 19,107 Crore for 2024-25: CM Naidu's White Paper Blames Previous Government's Mismanagement

Andhra Pradesh Chief Minister N Chandrababu Naidu announced on Friday that the state needs an additional Rs 19,107 crore to meet its essential committed expenditure for the 2024-25 fiscal year. During the release of a ‘white paper’, Naidu attributed the state's financial woes to the previous YSR Congress Party (YSRCP) government's "financial mismanagement," which he claims has pushed Andhra Pradesh into a "potential debt trap."

According to the white paper, the state’s essential committed expenditure for FY25 is estimated at Rs 1.64 trillion, while its untied revenues (the state’s own revenue plus tax devolutions) are projected at Rs 1.45 trillion. Naidu highlighted that the state’s debt surged from Rs 3.75 trillion (as of March 31, 2019) to Rs 9.74 trillion (as of June 12, 2024) under the tenure of the previous Y S Jaganmohan Reddy government.

Naidu pointed out that the state's economic growth rate in nominal terms decreased from 13.5 percent (2014-19) to 10.5 percent (2019-24), with the agriculture sector's growth declining from 16 percent (2014-19) to 10.3 percent (2019-24). He also noted a significant reduction in government capital spending, which dropped by 60 percent from Rs 60,879 crore during 2014-19 to Rs 24,267 crore during 2019-24. Key departments such as transport, roads, buildings, and water resources were severely underfunded.

Naidu, who served as CM from 2014 to 2019, revealed that he met Prime Minister Narendra Modi and other Union ministers, including the finance minister, twice in the past month. These meetings resulted in the Budget announcement of Rs 15,000 crore financial support for FY25 for the reconstruction of Amaravati, with a promise of "additional amounts in the future." The Centre also assured assistance for the early completion of the Polavaram project, grants for backward regions of Andhra, and funds for infrastructure development in Kopparthy (Visakhapatnam-Chennai Industrial Corridor) and Orvakal (Hyderabad-Bengaluru Industrial Corridor).

The Telugu Desam Party (TDP), led by Naidu, is a key ally of the National Democratic Alliance (NDA) government at the Centre. This is the seventh ‘white paper’ Naidu has released since June 12, accusing the YSRCP government of leaving the state’s finances in disarray and seeking financial assistance from the Centre to avoid the "potential debt trap" Andhra Pradesh faces.

Naidu claimed that the previous government left liabilities worth Rs 1.35 trillion, including Rs 1.13 trillion in outstanding dues to vendors and for welfare schemes, with the remainder being outstanding dues to state government employees. He also blamed the previous administration for "inefficient governance in the energy sector," which he said caused losses of Rs 1.29 trillion and led to increased tariffs for customers and industry.

The Chief Minister alleged that the YSRCP government's five-year tenure was marked by a lack of capital expenditure, reduced private investments, and a revenue loss of Rs 7 trillion. He lamented that Andhra Pradesh, which was growing faster than Telangana between 2014 and 2019, saw economic destruction between 2019 and 2024, resulting in declining farmers’ incomes and increasing debts. "Without money, we cannot do anything. When you create wealth, people’s income will increase," Naidu stated in the Andhra Pradesh Assembly.

He concluded by highlighting the detrimental effects of halting work on Amaravati, mismanagement of the Polavaram project, and problematic energy contracts, all of which damaged investor confidence and the state's brand image.