Andhra Pradesh Chief Minister N Chandrababu Naidu blamed the erstwhile YSR Congress Party (YSRCP) Government, led by Jagan Mohan Reddy, of severely damaging the State’s economy, estimating a loss of up to ₹7 lakh crore. The accusations were mentioned in a white paper released today by the CM.
In a presentation at the Andhra Pradesh Assembly, Naidu criticised Reddy’s administration for a decline in the agriculture sector’s growth from 16 per cent to 10.3 per cent and a drop in the service sector’s growth from 10.3 per cent to 9.9 per cent. He attributed these economic setbacks to what he termed as the “misrule” of Reddy’s government.
The white paper highlights significant financial losses, including ₹45,000 crore from the Polavaram project and an additional ₹7,900 crore in various damages. Naidu pointed out that Andhra Pradesh, which had been outpacing Telangana in growth from 2014 to 2019, saw its economy deteriorate between 2019 and 2024, with a drop in farmers’ incomes and rising debts.
According to Naidu, the YSRCP Government’s approach led to increased power costs due to short-term power purchases, resulting in an additional ₹12,250 crore burden. Illegal sand mining was blamed for a loss of ₹7,000 crore, while the mismanagement of mineral resources led to a ₹9,750 crore revenue shortfall. The cancellation of key projects like Amaravati, Polavaram, and energy contracts was said to have eroded investor confidence and damaged the state’s reputation.
Naidu reported a dramatic increase in state debt from ₹3.75 lakh crore on March 31, 2019, to ₹9.74 lakh crore by June 12, 2024. The white paper also noted that despite the Covid pandemic, Andhra Pradesh should have amassed an additional ₹52,197 crore, attributing the shortfall to inefficiencies and mismanagement under the previous administration.
In response to these challenges, Union Finance Minister Nirmala Sitharaman, in her seventh consecutive Budget announcement on July 23, allocated a special financial support package of ₹15,000 crore for the development of Andhra Pradesh’s new capital city for the financial year 2024-25.
The concept of Amaravati as the state’s capital was initially proposed by Naidu during his first term as chief minister between 2014-2019. Naidu’s Telugu Desam Party remains a key ally in the BJP-led coalition government at the Centre.
