YSR Congress Party president Y S Jagan Mohan Reddy has said that the Telugu Desam Party-led coalition government has failed miserably in managing the state’s finances, citing the latest report from the Comptroller and Auditor General (CAG), which paints a grim picture of Andhra Pradesh’s financial stability.
“The CAG has released the monthly key indicators for the first quarter of this financial year, and the data clearly reflects a precarious outlook for the state's financial health and public finance management,” Jagan said in a post on X.
He emphasized that only appropriate levels of government expenditure in critical areas of welfare and development can stimulate private consumption and investment, thereby initiating a virtuous economic cycle.
Jagan alleged that widespread corruption has led to poor performance across various revenue categories, with year-on-year growth remaining dismal.
Both the state’s own tax revenues and non-tax revenues showed lackluster growth during the first quarter of the 2025–26 financial year.
“It is quite apparent that the state has lost its economic buoyancy, as shown by the extremely low growth in some revenue categories and even negative growth in others,” he said.
Pointing to the figures released by the CAG, Jagan noted that Goods and Services Tax (GST) and Sales Tax — which reflect consumption trends — declined in the first three months of this financial year compared to the same period last year, which itself had already shown subdued growth.
During the first quarter of 2025–26, the state’s own revenues grew by only 3.47% year-on-year, while total revenue receipts, including transfers from the Government of India, grew by 6.14%.
Alarmingly, he said, the only significant increase was in debt, which rose by 15.61% in just the first three months of the fiscal year.
“This clearly shows the state’s growing dependence on borrowings rather than its own revenues to meet expenditure,” Jagan concluded.
