CM blames YSRCP regime for AP’s poor fiscal health

Vijayawada : Andhra Pradesh Chief Minister N Chandrababu Naidu on Monday criticised the previous YSRCP government for the state's dire fiscal condition, pointing to its 17th rank among 18 general category states for the fiscal year 2022-23. Andhra Pradesh lagged behind states like Bihar, Odisha, and Jharkhand, which themselves faced significant financial challenges.

Addressing a press conference, Naidu cited the findings of the NITI Aayog Fiscal Health Index Report 2025, which assessed state fiscal performances using 2022-23 data. He asserted that the report validated his long-standing allegations of financial mismanagement under the YSRCP regime.

"They caused devastation. I have said this repeatedly, and now NITI Aayog has confirmed it,” he remarked.

The report evaluated states across five key parameters: quality of expenditure, revenue mobilization, fiscal prudence, debt index, and debt sustainability. Andhra Pradesh performed particularly poorly in debt sustainability, earning a score of zero. According to Naidu, this underscores the state's inability to repay its debts. "A zero ranking in debt sustainability means no one is willing to lend money to Andhra Pradesh," he said.

Naidu also noted that Andhra Pradesh ranked just above Punjab, which occupied the last position across all categories. "Andhra Pradesh is at the bottom, struggling with severe fiscal deficits and mounting challenges," he stated.

The report revealed that Andhra Pradesh allocated only 10% of its developmental expenditure to capital investments. Naidu emphasized a sharp decline in capital investments in critical sectors such as social and economic services since 2018-19. Capital expenditure in these areas dropped by 84% and 60%, respectively. The combined allocation for these two sectors stood at ₹19,061 crore in 2018-19 but plummeted to ₹7,044 crore in subsequent years. Naidu warned that without prioritizing development and addressing corruption and inefficiency, the future of Andhra Pradesh's citizens would remain uncertain. "The people of this state deserve better. Development must be our focus to ensure a brighter future," he urged.

He added that the public had placed faith in the alliance government, and he was committed to fulfilling all promises made. While some schemes have already been implemented, others will materialize soon. "The state has just emerged from financial ICU status, thanks to the Centre's support," Naidu explained, seeking patience and confidence from the people.