AP Facing Financial Crisis Under Coalition Rule, Alleges YS Jagan

As the TDP-led NDA government in Andhra Pradesh is set to complete two years in office, YSRCP president and former Chief Minister Y. S. Jagan Mohan Reddy launched a sharp attack on the state government over its handling of the economy. He alleged that the state had plunged into severe financial distress due to the government’s ill-conceived policies, corruption, and indiscriminate borrowings .

Responding through the social media platform X, Jagan cited official CAG statistics to criticise the government’s financial management.

Jagan dismissed the coalition government’s claim of 10.7 per cent GSDP growth as “statistical manipulation.” He said CAG reports clearly showed that the state’s own tax revenue had declined by 3.22 per cent during the 2025–26 financial year .

He stated that if genuine development was taking place in the state, investments and public consumption would have increased, leading to a substantial rise in tax collections. Instead, the decline in tax revenue reflected the economic slowdown and administrative failure of the ruling government, he alleged.

Recalling that the state’s tax revenue stood at Rs 85,922 crore in 2023–24 , the final financial year of the YSRCP government, Jagan said that with even a modest annual growth rate of eight per cent, the revenue should have crossed Rs 1 lakh crore by 2025–26 .

However, he pointed out that under the present government, tax revenue had risen only to Rs 86,553 crore . Because of this, the state had allegedly suffered a loss of around Rs 13,667 crore in tax revenue due to the failure of the TDP-led coalition government.

Questioning Chief Minister N. Chandrababu Naidu, Jagan asked whether this was the “wealth creation” that he frequently spoke about. He also accused the government of promoting a narrative of rapid development despite weak revenue generation.

Jagan also raised serious objections over the utilisation of Rs 9,000 crore raised through non-convertible debentures by the Andhra Pradesh Mineral Development Corporation (APMDC) in May 2025 .

He alleged that instead of using the funds for the creation of permanent assets in the state, the government diverted the money towards routine revenue expenditure and financial adjustments. He further claimed that granting private debenture holders rights over the state’s consolidated fund through government-backed borrowings was completely unconstitutional .

The former Chief Minister said the state government’s financial management had “gone completely off track” and alleged that corruption and flawed economic policies had pushed Andhra Pradesh towards decline. He maintained that the policies adopted over the past two years were responsible for the present condition of the state.

There has been no official response so far from the ruling TDP-led coalition government to the allegations made by Jagan.