Talks on to cut interest burden by Rs 2,000 cr: FM

Vijayawada: Finance minister Payyavula Keshav on Thursday said the State government is negotiating to reduce interest rates on high-cost loans, aiming to bring down the annual interest burden by around Rs 2,000 crore.

Replying to the debate on the Budget 2026–27 in the Assembly, the minister said that saving Rs 2,000 crore per year would significantly enhance the government’s capacity to implement welfare and development schemes more effectively.

He stated that revenue performance has improved compared to the previous regime, with mining department income increasing by 33 per cent and excise revenue rising by 24 per cent. Keshav alleged that during the earlier YSRCP government, revenues from mining and excise were diverted to the ‘Tadepalli Palace,’ an apparent reference to former Chief Minister Y S Jagan Mohan Reddy. Keshav said that the current budget reflects fiscal correction, revenue strengthening and renewed focus on regional development.

While outlining the NDA coalition government’s schemes, Keshav launched a sharp attack on the previous administration, remarking in the House, “YSRCP never again, coalition once again.”

He said a ‘statutory warning’ about the alleged harm caused by the YSRCP to the State should continue to be conveyed to the public. The minister also suggested that citizens should develop a strong sense of ownership toward the State, drawing a comparison with the national spirit of Israel.

The finance minister contrasted land allotments made under Chief Minister N Chandrababu Naidu with those during the YSRCP regime. He said allocations during Naidu’s tenure attracted companies such as Kia, HCL Technologies, Ashok Leyland, Hero MotoCorp, Tata Consultancy Services, Cognizant and a Google AI Data Center project.

In contrast, he alleged that lands allotted during the YSRCP government did not yield comparable industrial results. He cited projects such as Lepakshi Knowledge Hub, Vanpic and Brahmani Steels, claiming that not even a single MSME materialised from those allocations.

On the Rayalaseema Horticulture Hub initiative, Keshav said that under Naidu’s leadership, investments are flowing not only into industries but also into agriculture. He noted that investments from Delhi are being made in pomegranate cultivation in Kalyanadurgam constituency and expressed confidence that Rayalaseema products would receive international branding similar to Araku.

The minister also criticised Jagan Mohan Reddy over Rayalaseema irrigation projects, alleging that 102 projects were cancelled with a single signature.

He told the House that documents indicate that then special chief secretary for Irrigation Adityanath Das had clarified that the Rayalaseema Lift Irrigation Project was not being constructed during the previous regime.