National Loss Of ₹13,667 Crore: YS Jagan Reddy alleges ‘severe fiscal stress’ in Andhra under Naidu govt

Former Andhra chief minister Y S Jagan Mohan Reddy has accused the Naidu government of masking fiscal stress, citing declining tax revenues and alleging irregular debt practices despite high growth claims.

Amaravati: Former Andhra Pradesh chief minister and YSR Congress Party president YS Jagan Mohan Reddy on Friday launched a sharp attack on the Chandrababu Naidu-led government, alleging that the state is facing “severe fiscal stress” despite official claims of rapid economic growth.

In a detailed statement posted on social media, the YSR Congress Party chief questioned the state government’s claims of strong economic growth and argued that the financial data paints a very different picture.

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Questions Raised Over Growth and Tax Collections

Jagan pointed to the state government’s claim of a 10.75 percent Gross State Domestic Product (GSDP) growth rate during the 2025-26 financial year. However, he said the state’s own tax revenues contracted by 3.22 percent during the same period.

𝟮 𝘆𝗲𝗮𝗿 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗶𝗻𝗱𝗶𝗰𝗮𝘁𝗶𝗻𝗴 𝘀𝗲𝘃𝗲𝗿𝗲 𝗳𝗶𝘀𝗰𝗮𝗹 𝘀𝘁𝗿𝗲𝘀𝘀

The provisional accounts for the financial year 2025-26 have been published by the CAG, these accounts bring to light unsettling facts regarding the State.

On one hand Mr. Chandrababu… pic.twitter.com/jyQe6sUJVv

— YS Jagan Mohan Reddy (@ysjagan) May 16, 2026

According to him, a fast-growing economy should normally witness higher levels of investment, consumption and tax collections. He argued that the decline in tax revenue contradicts the government’s projections and raises doubts over the reported growth figures.

The former chief minister stated that Andhra Pradesh recorded tax revenues of ₹85,922.23 crore in 2023-24, during the final year of the previous YSRCP government. He claimed that even with a modest annual growth rate of eight percent, revenues should have crossed ₹1 lakh crore by 2025-26.

Instead, he said, the state achieved tax revenues of ₹86,552.68 crore, which he described as a “notional loss” of nearly ₹13,667 crore.

Allegations Over NCD Funds

Jagan also referred to the ₹9,000 crore raised through Non-Convertible Debentures (NCDs) issued by the Andhra Pradesh Mineral Development Corporation (APMDC) in May 2025.

Jagan alleged that the funds were used to meet government revenue expenditure instead of being utilised for asset creation. He further claimed that allowing private NCD holders access to the state’s Consolidated Fund violated constitutional norms.

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Describing the situation as a sign of “economic distress, policy paralysis and corruption”, Jagan accused the government of adopting “unhealthy and unconstitutional” methods to manage the state’s finances.

Accusations of Policy Paralysis

The former chief minister accused the present administration of policy paralysis, corruption and adopting “unhealthy” methods of debt raising. He also criticised the government’s “Sampada Srushti” narrative, alleging that economic distress was being hidden behind claims of rapid development. The Andhra Pradesh government has not yet officially responded to the allegations.