Tadepalli: Former Finance Minister Buggana Rajendranath sharply criticised the TDP coalition government, citing the alarming revelations in the 2024-25 provisional accounts of AP published by CAG.

In a statement released at party headquarters here on Thursday, he stated the provisional numbers bring to light the extent of financial mismanagement and lack of fiscal discipline under Chief Minister N Chandrababu Naidu’s leadership.

According to Buggana, the CAG data indicates that the State has fallen into a cycle of mounting debt and economic stagnation, with large-scale borrowings being undertaken without any corresponding development on the ground. He pointed out that the revenue expenditure for 2024–25 was as high as Rs 2,25,889 crore even though, there were no major implementation of welfare projects, this quite surely indicates expenditure profligacy. Despite heavy borrowing, capital expenditure had dropped by Rs 4,153 crore compared to the previous year. Referring to the CAG figures, Buggana noted that revenue receipts had declined from Rs 1,73,767 crore in 2023–24 to Rs 1,68,443 crore in 2024–25. State’s own revenues witnessed a very low year-on-year growth of only 3.08 percent, and non-tax revenue saw a reduction of Rs 640 crore. During the YSRCP regime 2019-24, despite overwhelming odds that had resulted from Covid-19 outbreak, the State’s own tax revenues grew at a CAGR of 10.04 percent. Had that been the growth in FY 25 as well, the State’s own revenues would have touched Rs 1,02,727 crore.

If we take this figure into consideration, then the loss to the State exchequer on account of lower own revenues during FY 25 owing to myopic policies of the present Government is Rs 6,500 crore, he pointed out.

Central grants, Buggana said, had also dropped sharply in FY 2024-25 by Rs 14,566 crore from Rs 34,702 crore to Rs 20,136 crore.

Buggana also drew attention to a reduction in spending on critical social sectors like education, health, nutrition, and welfare, which had collectively seen a cut of Rs 3,945 crore. Buggana cautioned the government to return to a path of fiscal responsibility, openness, and people-focused budgeting before the financial damage became irreversible.