Andhra Pradesh's Financial Crisis: Former Minister Critiques TDP Government
Former Finance Minister Bugna Rajendranath has sharply criticized the Telugu Desam Party (TDP)-led government in Andhra Pradesh for its handling of the state's financial crisis. He cites the Controller and Auditor General's report to highlight increasing debt and stagnant growth, while questioning the government's claims of sustainable spending. Rajendranath points to significant declines in capital expenditure and revenue, suggesting that the TDP's policies have led to substantial financial losses. This article delves into the details of his allegations and the implications for the state's economy.
| May 15, 2025, 20:04 IST
Criticism of the TDP Government's Financial Management
Former Finance Minister of Andhra Pradesh, Bugna Rajendranath, has expressed strong criticism of the Telugu Desam Party (TDP)-led coalition government, attributing the state's worsening financial crisis to its mismanagement. He referenced the Controller and Auditor General's (CAG) provisional accounts for 2024-25 as evidence of the government's failures. Rajendranath accused Chief Minister N. Chandrababu Naidu of pushing the state into a cycle of increasing debt and stagnation, highlighting the lack of developmental indicators despite significant borrowing.
He pointed out that despite the absence of major welfare schemes, the revenue expenditure for 2024-25 soared to ₹2,25,889 crores, which he deemed as wasteful spending.
Decline in Capital Expenditure and Revenue
Rajendranath noted a decline of ₹4,153 crores in capital expenditure compared to the previous year, contradicting the government's claims that borrowing was being utilized for sustainable public asset creation. According to him, the CAG report indicated a drop in revenue receipts, which fell from ₹1,73,767 crores in 2023-24 to ₹1,68,443 crores in 2024-25, reflecting a sluggish growth of only 3.08 percent in the state's own revenue. He also mentioned a decrease of ₹640 crores in non-tax revenue.
Comparing the YSR Congress Party's tenure from 2019 to 2024, Rajendranath highlighted that despite the COVID-19 pandemic, the state's own tax revenue had grown at a compound annual growth rate of 10.04 percent.
Impact of TDP Policies on Revenue Growth
He stated that if this growth trend had continued, the revenue figure for 2024-25 could have reached ₹1,02,727 crores, indicating a loss of ₹6,500 crores due to the TDP government's shortsighted policies. Additionally, he pointed out a significant decline in central grants, which dropped by over ₹14,500 crores in the fiscal year 2025, refuting TDP's claims that the YSR Congress Party had not effectively utilized central schemes.
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