Record Debt, Low Revenue, No Wealth Creation: State of Andhra’s Economy Under Naidu

TDP supremo N Chandrababu Naidu came to power in Andhra Pradesh with the promise of wealth creation. However, nine months after the NDA took office, it appears that Naidu has embarked on a borrowing spree.

The TDP-led NDA government recently secured a loan of ₹4,548 crore at an interest rate of 7.09%. The total debt in the state for the financial year 2024-25 now stands at ₹1.52 lakh crore, the highest ever in a single year in the state's history.

In addition to the borrowings of ₹98,088 crore shown in the budget, the Naidu-led government has also incurred off-budget borrowings of ₹54,700 crore, bringing the total debt to ₹1.52 lakh crore.

Despite extensive borrowing, the coalition government has yet to implement its Super Six promises. On one hand, the state's debt is mounting, while on the other, revenue is declining.

In its latest report, the Comptroller and Auditor General (CAG) released figures regarding the state's revenue and expenditure as of February 2025. The CAG report revealed a decline in revenue receipts by ₹11,450 crore in FY2024-25 compared to FY2023-24.

Moreover, revenue from sales tax and from stamps and registration fees has also decreased by ₹1,068 crore and ₹721 crore, respectively, as of February 2025, compared to the previous financial year. Experts have pointed out that the drop in sales tax revenue is a sign of declining purchasing power among the people.

The CAG report also noted that the state's debt is higher than what was estimated in the budget for FY2024-25. While the government had initially estimated borrowings of around ₹70,000 crore, by February 2025, the state had already incurred debt of ₹90,557 crore.

Furthermore, grants from the central government have dropped by ₹16,766 crore year-on-year.