Jagan Flags Financial Strain from High Debt, Slow Revenue Growth

Quick Summary

• YSRCP president Y.S. Jagan Mohan Reddy, in a statement on platform X (formerly Twitter), criticized the fiscal management of the TDP-JSP coalition goverment.
• He alleged that their election promises to rapidly boost government revenues and reduce debt have not materialized.
• During FY 2024-25, Year-on-Year (YoY) growth of government revenues was only 3.08%, compared to a claimed economic growth rate of 12.02%.
• Financial distress continued into the first four months of FY 2025-26, with GST and sales tax revenues performing poorly.
• compound Annual growth Rate (CAGR) for state revenues from FY 2023-24 to FY 2025-26 was reported at 2.39%, far below the expected norm of 10%.**
• State debt liabilities increased by ₹1,86,361 crore in the coalition’s first 14 months-56% of what was borrowed during YSRCP’s five-year tenure from 2019 to 2024 (~₹3,32,671 crore).
• Jagan Mohan Reddy criticized alleged corruption under NDA governance and urged its leaders to reassess their management approach.

Indian Opinion Analysis

The YSRCP leader’s critique highlights significant concerns about fiscal policy during the ongoing term of governance by the TDP-JSP coalition. The reported low revenue growth despite claims of high economic expansion raises questions about efforts at revenue mobilization and broader financial mismanagement.

One notable issue is the increasing debt burden observed over just fourteen months-a highly accelerated pace when juxtaposed with prior periods-which could place long-term stress on Andhra Pradesh’s financial stability if not addressed instantly. Additionally, underperformance in key streams like GST reinforces concerns about clarity or inefficiencies within fiscal systems.From a governance viewpoint,accountability regarding actual versus projected results becomes increasingly critical as public discontent intensifies over unmet promises made during elections. Whether ample corrective strategies are discussed or implemented may define future political dynamics within Andhra Pradesh.

Link for Read More: Published – August 23, 2025