Andhra Pradesh Chief Minister N Chandrababu Naidu has raised concerns over the state’s deteriorating fiscal health under the previous YSR Congress Party (YSRCP) government, referencing its dismal ranking of 17th out of 18 general category states in the Niti Aayog Fiscal Health Index Report 2025. Andhra Pradesh ranked below Bihar, Odisha, and Jharkhand, states also grappling with financial difficulties, with only Punjab performing worse.
During a press conference on Monday, Naidu criticised the YSRCP government for its handling of state finances. “They caused devastation. Didn’t know what they did with the money. I told this many times, and Niti Aayog has also confirmed this,” he said.
The report, which evaluates fiscal health based on data from the financial year 2022-23, assessed states in five categories: quality of expenditure, revenue mobilisation, fiscal prudence, debt index, and debt sustainability. Andhra Pradesh’s performance was particularly concerning, scoring zero in debt sustainability – a key metric indicating the state’s inability to repay its debts.
Naidu noted that the state’s fiscal woes had reached a point where it struggled to service its existing debt, resulting in an unwillingness from lenders to provide financial assistance. “Andhra Pradesh lies in the bottom category, facing significant fiscal challenges. Andhra Pradesh has fiscal deficits. AP, on average, allocated only 10 percent of the total developmental expenditure to capital expenditure,” he said, quoting the think tank’s findings.
He highlighted a significant decline in capital expenditure since 2018-19, particularly in sectors like social services and economic services, which saw reductions of 84 percent and 60 percent, respectively. The combined expenditure in these areas, which amounted to Rs 19,061 crore in 2018-19, fell sharply to Rs 7,044 crore in subsequent years.
Naidu also cautioned that the future of Andhra Pradesh’s residents would remain bleak unless political leaders prioritised development and avoided corruption and inefficiency.
With inputs from PTI