The Telugu Desam Party-led government in Andhra Pradesh, which completes one year in office next week (June 12), has its task cut out to revive the economy of the state without compromising on the implementation of the welfare agenda. Chief minister N Chandrababu Naidu, a seasoned politician, sounded confident of bringing the state’s financial prudence back on track.

“Brick by brick, we are rebuilding the devastated state. In just one year, we’ve shown what good governance looks like,” Naidu, who is also the TDP president, said while addressing his party’s conclave, Mahanadu, in Kadapa on May 29.
His government was working to enhance the image of the Telugu state by attracting the attention of global investors.
The Opposition YSR Congress Party (YSRCP), however, described the one-year regime as a big failure and a betrayal of the people’s mandate. “The government has gone back on its poll promises. In a span of one year, the people are vexed with the coalition government,” YSRCP chief Jagan Mohan Reddy said on Tuesday, calling upon the people to observe the “Betrayal Day” on June 4.
Having secured a landslide mandate a year ago on June 4, sweeping the assembly polls by winning 164 out of the 175 seats, the TDP-led National Democratic Alliance (NDA), also comprising the Bharatiya Janata Party (BJP) and the JanaSena Party, has generated high expectations among the people. The coalition also swept the Lok Sabha polls, winning 21 out of 25 seats, dealing a massive blow to the former CM YS Jagan Mohan Reddy-led YSR Congress Party, which could get only 11 assembly and four Lok Sabha seats.
{{/usCountry}}Having secured a landslide mandate a year ago on June 4, sweeping the assembly polls by winning 164 out of the 175 seats, the TDP-led National Democratic Alliance (NDA), also comprising the Bharatiya Janata Party (BJP) and the JanaSena Party, has generated high expectations among the people. The coalition also swept the Lok Sabha polls, winning 21 out of 25 seats, dealing a massive blow to the former CM YS Jagan Mohan Reddy-led YSR Congress Party, which could get only 11 assembly and four Lok Sabha seats.
{{/usCountry}}Priorities drawn
Returning to CM position for the fourth time, Naidu began his latest tenure on a positive note by substantially increasing pensions, as promised before the polls, and also revoking the controversial land titling law introduced by his predecessor. He also revived Anna Canteens and fulfilled the promise of supplying three free gas cylinders annually to poor women.
However, financial constraints posed challenges to fulfilling other promises, such as free bus travel for women, payments of ₹20,000 to farmers under the Annadata Sukhibhava scheme, ₹15,000 to women under the Thalliki Vandanam scheme, ₹1,500 under the Adabidda Nidhi scheme, and an unemployment allowance of ₹3,000 for jobless youth.
Last week, Naidu announced he would implement Annadata scheme from this Kharif season, Thalliki Vandanama from the coming academic year and free bus travel for women from August 15.
Unlike his predecessor Reddy, who focussed mainly on implementing direct benefit transfer (DBT) schemes, Naidu has his own priorities — reviving the abandoned Amaravati capital city project and completion of Polavaram major irrigation project.
“Fortunately for Naidu, his timely alliance with the BJP before the last elections has helped him gain substantially from the Centre. Since the TDP is the largest partner (after BJP) in the ruling NDA with 16 Lok Sabha seats, the Centre was liberal in extending financial assistance to the state – not only for Amaravati capital city and Polavaram, but also to national highways, ring roads, metro rail etc,” political analyst Ramakrishna Sangem said.
Naidu kickstarted the constructions in Amaravati and got the works relaunched by Prime Minister Narendra Modi on May 2 this year, following the approval of ₹15,000-crore loan from World Bank and ADB, besides securing another ₹11,000 crore loan from HUDCO and other financial institutions.
He also got the works on Polavaram project expedited and hopes to complete the project by December 2027.
“The financial package of over ₹11,000 crore for Vizag Steel Plant, approval for the establishment of BPCL refinery project and industrial corridors at Orvakal etc are some of the major achievements of Naidu, thanks to his lobbying power with the Centre,” Sangem added.
Yet, Naidu continues to struggle with the financial crisis. According to the CAG report, the TDP-led government had resorted to budgetary and off-budget borrowings to the extent of ₹1,37,546 crore in the last one year.
Hitting at the Naidu government, former CM Reddy in a post on X said: “The fiscal deficit went up from 4.08% of the GSDP to 5.12% in a span of one year and the revenue deficit jumped from 2.65% to 3.61%.”
Revenge politics
Naidu’s one-year rule so far also exhibited his revenge politics, a full brunt of which has been faced by the YSRCP. State’s CID, the special investigation team (SIT) and the Anti-Corruption Bureau (ACP) of the state police have been targeting the YSRCP leaders by digging out one scam after another.
Some of the cases under investigation include alleged forcible acquisition of shares in Kakinada SeaPorts Ltd and Kakinada Special Economic Zone by YSRCP leaders like YV Subba Reddy and V Vijay Sai Reddy; land encroachments and illegal mining in several parts of the state allegedly by former ministers Kakani Goverdhan Reddy and Peddireddy Ramachandra Reddy; and illegal liquor scam worth ₹3,200 crore allegedly involving Peddireddy Mithun Reddy, Jagan’s secretary K Dhanujay Reddy, OSD P Krishnamohan Reddy and former IT advisor Raj Kesireddy.
The government also cracked down on some key YSRCP leaders like former Macherla MLA Pinnelli Ramakrishna Reddy, former Bapatla MP Nandigam Suresh, former minister Jogi Ramesh and former MLA Vallabhaneni Vamsi, all of whom have been arrested in various criminal cases. He also launched a massive crackdown on social media activists affiliated with the YSRCP, for allegedly posting derogatory content against the ruling coalition on social media.
Naidu also made every attempt to malign the image of former CM Reddy by highlighting the issues like alleged adulteration of cow ghee used for making Tirumala laddu during the YSRCP regime, an accusation that created massive uproar.
The government did not spare even IAS and IPS officers who had targeted Naidu during the YSRCP regime. Several officers were shifted from their posts and were kept in waiting without any further postings for a long time. Three of them — IPS officers PSR Anjaneyulu, Kranti Rana Tata, and Vishal Gunni — were suspended in September for their alleged involvement in the improper arrest and alleged harassment of Mumbai-based actress Kadambari Jethwani.
Shrewd politicking
On the political front, CM Naidu has been able to manage the alliance partners well, by offering key portfolios to allies JanaSena Party and the BJP. Besides appointing Pawan Kalyan as deputy chief minister and BJP leader Satya Kumar as health minister, he allotted a large chunk of nominated posts to the alliance partners. So far, the three parties have been able to work in tandem.
At the same time, Naidu also appears to be grooming his son Nara Lokesh as his heir apparent. At the recent Mahanadu, TDP leaders raised the pitch for making Lokesh the working president of the party.
Pawan Kalyan, who is presently considered No 2 in the state cabinet, is lying low. Though his Jana Sena Party had 100% strike rate in the last elections by winning 21 out of 21 assembly seats and both the Lok Sabha seats it contested, the actor-turned-politician is not asserting himself.
“Pawan Kalyan knows his limitations, but at the same time, he is able to get the things done for his party by bringing pressure on Naidu,” political analyst Sangem added.
Bumpy road for Jagan
After facing humiliating defeat in the assembly elections, several key leaders of the YSRCP resigned, including Jagan’s once trusted lieutenant Vijay Sai Reddy. Four Rajya Sabha members and six MLCs also resigned from their posts.
The road ahead for Jagan Mohan Reddy is bumpy and challenging. And yet, his fighting spirit remains intact.
At a recent party meeting, Reddy asserted: “When in opposition, challenges are inevitable. But we must remain steadfast in our values. Hardships don’t last forever. I assure you — our party will return to power and rule the state for the next 30 years.”