‘Jagan Reddy’s govt destroyed Andhra economy': Naidu releases white paper on state finances
Chandrababu Naidu accused the YSRCP government led by YS Jagan Mohan Reddy of causing a loss of up to ₹7 lakh crore to state's economy
Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday released a white paper, accusing the previous YSRCP government led by Jagan Mohan Reddy of destroying the state's economy and causing a loss of up to ₹7 lakh crore.
While releasing the white paper on state's finances in the Andhra Pradesh assembly, Naidu alleged that under Reddy's leadership, the growth of the agriculture sector had declined from 16 percent to 10.3 percent, and the service sector's growth rate had dropped from 10.3 percent to 9.9 percent.
He also alleged that the ‘misrule’ that began when Reddy took office resulted in the looting of natural resources, anti-industrial policies, changes to the capital city plan.
The document alleged ₹45,000 crore loss in the Polavaram project and other damages totaling ₹7,900 crore.
“Andhra Pradesh was growing faster than Telangana from 2014 to 2019, but the economy was destroyed from 2019 to 2024 with farmers' incomes falling and debts rising,” said Naidu while presenting the white paper in the assembly.
Naidu claimed that the cost of power increased under the YSRCP regime due to short-term power purchases, which added an extra burden of ₹12,250 crore, while alleged illegal sand mining led to a loss of ₹7,000 crore.
He charged that the looting of mineral wealth resulted in a revenue loss of ₹9,750 crore and said the cancellation of the Amaravati city project, the Polavaram project, and energy contracts had destroyed investor confidence and damaged the state's brand image.
The Telugu Desam Party chief said that the state's debt rose from ₹3.75 lakh crore on March 31, 2019, to ₹9.74 lakh crore by June 12, 2024.
The white paper revealed that despite the impact of COVID-19, Andhra Pradesh should have collected an additional ₹52,197 crore. The paper highlighted ‘inefficiencies’ and ‘mismanagement’ under the previous government.
It also highlighted a rise in state debt from ₹3,75,295 crore in March 2019 to ₹9,74,556 crore by mid-2024.
While presenting her seventh consecutive Budget, Union Finance Minister Nirmala Sitharaman on July 23 announced a special financial support package of ₹15,000 crore for the development of Andhra Pradesh’s new capital city during the financial year 2024-25.
The idea of Amaravati as Andhra Pradesh’s capital was chief minister Chandrababu Naidu’s brainchild, floated during his first chief ministerial term between 2014-19. Naidu’s Telugu Desam Party is currently an important ally in the BJP-led coalition government at the Centre.