Tax revenues contract despite growth claims, YS Jagan targets TDP

Ahead of the TDP-led NDA government completing two years in Andhra Pradesh, opposition leader YS Jagan Mohan Reddy accused Chief Minister Chandrababu Naidu’s administration of economic mismanagement.

Amaravati: Ahead of the TDP-led NDA government in Andhra Pradesh completing two years in office, in June, YSRCP supremo YS Jagan Mohan Reddy on Saturday alleged that the state suffered economic distress from policy paralysis and corruption, tales of rapid growth and unhealthy debt during this period.

Citing CAG figures, the former CM asserted that tax revenues in the southern state contracted by 3.2 percent in FY26, demonstrating inconsistency with the stated GSDP growth rate of 10.7 percent.

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“Therefore, what was witnessed over the last two years was unambiguous signs of economic distress resulting from policy paralysis and corruption, tales of rapid growth for the purposes of diversion, and adoption of un-constructional and unhealthy means for raising debt,” said Reddy in a post on ‘X’.

There was no immediate reaction from TDP.

Claiming that the two-year performance from 2024 to 2026 indicates severe fiscal stress, the opposition leader asserted that CAG figures bring to light facts regarding the state.

Though Chief Minister N Chandrababu Naidu claims that Andhra Pradesh is galloping in growth with a year-on-year GSDP growth rate of 10.7 percent in fiscal 2025-26, Reddy alleged that tax revenues paint a completely different picture, contracting by 3.2 percent.

In any state that is progressing fast, there would be heightened levels of investment and consumption, reflected in the form of higher tax collections by the state government, said Reddy.

“In reality, the state government tax revenues have declined by 3.22 per cent against the revised estimates of a 9.60 per cent growth over previous year during 2025-26, as shown in volumes placed for state Budget for FY 2026-27,” said the former CM.

If the state’s tax revenues have actually grown by 9.6 percent, the YSRCP chief said, then one would believe the state government’s GSDP growth estimates of 10.75 percent.

However, what was witnessed was a contraction to the tune of 3.22 percent in own tax revenues, he said.

Comparing the erstwhile YSRCP government to the current political dispensation, Reddy observed that the last fiscal of his regime, 2023-24, clocked tax revenues to the tune of Rs 85,922 crore.

Contrasting this performance with the NDA coalition government, he said even if a modest eight percent growth was achieved, then the tax revenues in the year 2025-26 should have been over Rs 1 lakh crore but pointed out that only Rs 86,553 crore was netted.

Therefore, the notional loss under the TDP-led coalition government during FY26 year was to the tune of Rs 13,667 crore, claimed Reddy, questioning Naidu’s claim of ‘sampada srushti’ (assets creation) under his reign.

“Is this his (Naidu) Samapada Srushti. Lower revenues by Rs. 13,667 crore even when compared with a modest benchmark,” he asked.

Further, the opposition leader alleged that Rs 9,000 crore raised through non-convertible debentures issuance by APMDC (Andhra Pradesh Mineral Development Corporation) in May 2025 was actually intended to be utilised for meeting government revenue expenditure.

“No asset creation took place from this NCD issuance. In an unprecedented manner, private NCD holders were allowed access to the Consolidated Fund of the State in violation of all constitutional norms. From the accounts, one can ascertain that this amount is received as Non-tax revenues during 2025-26,” he claimed.

Moreover, Reddy alleged that the Naidu-led government’s performance unambiguously indicates an economic slowdown owing to myopic policies and corrupt practices.