Chandrababu Naidu's misleading statements on state finances: YSRCP strongly condemns

29 Jan, 2025 13:01 IST|Sandeep Athreya

Tadepalli, Jan 29: YSRCP strongly denounced the false and manipulative claims made by Chief Minister Chandrababu Naidu regarding the state's financial status. His presentation, riddled with selective comparisons and misinformation, deliberately seeks to mislead the public. 

By isolating data from a single financial year and ignoring broader fiscal realities, Naidu is attempting to create a distorted narrative that fails to acknowledge YSRCP's sustained efforts in maintaining fiscal prudence, increasing capital investments, and stabilizing state revenues despite unprecedented challenges. Naidu's claim that capital expenditure under YSRCP has declined is both baseless and deceptive. 

As per the Comptroller and Auditor General (CAG) records, the average capital expenditure during the YSRCP's five-year tenure (2019-24) stood at Rs 15,632.86 crores, surpassing the Rs 13,860.60 crores recorded during the TDP regime (2014-19). Naidu’s comparison of only 2018-19 (TDP) with 2022-23 (YSRCP) conveniently ignores the fact that capital expenditure fluctuates yearly based on multiple factors, including external economic conditions.

In a desperate attempt to deceive the public, Naidu falsely claimed that social sector investments had reduced. 
The facts, however, are indisputable.

The average capital expenditure on social services during YSRCP’s tenure was Rs 5,224.83 crores, more than double the Rs 2,437.43 crores during TDP's rule. Investments in crucial sectors like health, education, sanitation, and urban development were substantially increased by YSRCP. 
Contrary to Naidu's misrepresentation, these investments have laid the foundation for enduring socio-economic benefits for the state.

Naidu's claims about debt sustainability under YSRCP collapse under scrutiny. When TDP left office in 2019, Andhra Pradesh was already burdened by a scenario of "zero debt sustainability." 

This situation was a direct consequence of the fiscal indiscipline during Naidu's tenure. The compounded annual growth rate (CAGR) of liabilities during the TDP period (2014-19) was a staggering 22.63%, compared to just 13.57% during YSRCP’s governance. The interest payment growth under Naidu (15.42%) outpaced the state’s GSDP growth rate (13.48%), creating a debt crisis that YSRCP inherited and worked to stabilize.
Furthermore, during the TDP regime, over-borrowing beyond the fiscal deficit limits prescribed by the Union Finance Commission amounted to Rs 31,082 crores, while YSRCP's borrowing beyond limits was limited to just Rs 2,817 crores.

Naidu's presentation creates the false impression that revenue generation flourished during his rule while stagnating under YSRCP. 
However, the truth paints a different picture. The CAGR of state’s own tax revenues during TDP's term was 12.9%, marginally higher than the 10% recorded under YSRCP, despite YSRCP facing unprecedented challenges like the COVID-19 pandemic. Despite this, during the first seven months of Naidu's current term, the state recorded a near-zero growth of just 0.03% in tax revenues, as per CAG data. This stagnation underscores Naidu's failure to drive economic growth even in a post-pandemic environment without significant national distress.

Naidu’s tenure between 2014-19 was characterized by reckless fiscal deficit overshooting. TDP exceeded permissible fiscal deficit limits by Rs 31,082 crores, compared to only Rs 2,817 crores under YSRCP. Despite inheriting this financial mess, YSRCP navigated through difficult circumstances, including the COVID-19 pandemic, without compromising on key welfare initiatives.

Contrary to Naidu's baseless accusations, YSRCP's tenure has been marked by responsible fiscal management, increased capital investments, and a firm commitment to the welfare of Andhra Pradesh's people. The facts speak for themselves — YSRCP has invested heavily in social services, health, education, and infrastructure, maintained fiscal discipline despite inheriting a fragile economic situation from TDP, and stabilized revenue growth even during global economic turbulence. YSRCP calls upon the people of Andhra Pradesh to see through Naidu's deceitful tactics and recognize the YSRCP's unwavering dedication to the state's progress and prosperity.

Read More:
More News