Political criticism over the financial performance of the ruling TDP government in Andhra Pradesh has intensified. Citing figures from the Comptroller and Auditor General (CAG) for the 2024–25 financial year, the opposition has levelled several allegations against the state government. According to the opposition, Andhra Pradesh has fallen behind in multiple areas, including state tax revenue growth, revenue deficit, fiscal deficit, public debt, investments, industrial development, employment, GST collections, and police performance.
The opposition argues that there is a significant gap between the government’s claims of development and the figures released by official institutions.
2024–25 CAG Report
Has Andhra Pradesh Slipped to 22nd Place in State Tax Revenue Growth?
According to the opposition, the CAG data indicates that the state’s financial health is weakening.
The opposition highlights the following points:
- States such as Bihar recorded nearly 18% growth in their own tax revenue.
- In contrast, Andhra Pradesh registered only 1.97% growth.
- As a result, they claim the state has slipped to 22nd place nationwide in own tax revenue growth.
- According to the opposition, this reflects a slowdown in economic activity across the state.
Revenue Deficit of ₹60,285 Crore – Highest in the Country?
Referring to the CAG figures, the opposition has raised another major concern.
According to them:
- Andhra Pradesh recorded a revenue deficit of ₹60,285 crore during 2024–25.
- The state also registered a 5.09% fiscal deficit, which they claim is the highest among all states in the country.
The opposition further alleges that:
- Despite raising massive borrowings, only 27% of the borrowed funds were utilized for capital expenditure, as reportedly mentioned in the CAG report.
Opposition Claims State Borrowed ₹3.59 Lakh Crore in Two Years
According to the opposition:
- The Andhra Pradesh government borrowed ₹3,59,157 crore over the last two years.
- Despite borrowing nearly ₹3.60 lakh crore, they allege that the funds were not adequately invested in productive sectors capable of generating long-term economic growth.
Has the State’s GST Share in GSDP Declined?
Economists generally believe that higher economic activity leads to stronger GST collections.
However, the opposition claims:
- The state’s GST contribution to Gross State Domestic Product (GSDP) declined from 2.20% in 2023–24 to 1.90% within two years.
- This represents a decline of 30 basis points.
- The opposition questions why the GST share has fallen if wealth creation and economic growth have actually improved.
₹29 Lakh Crore Investment Claims vs Central Government Data
While the Andhra Pradesh government claims that the state has attracted ₹29 lakh crore worth of investments over the past two years, the opposition cites figures released by the Union Government that present a different picture.
According to the opposition:
- The Centre has officially reported investments worth only ₹6,962 crore.
- These projects are expected to generate approximately 22,167 jobs.
The opposition questions why such massive investments are not reflected in official central government records.
Did Investments Worth ₹6,215 Crore Leave Andhra Pradesh?
The opposition also alleges that several companies have either reduced or shifted their investments outside Andhra Pradesh due to government policies and the industrial environment.
The companies mentioned include:
- Coca-Cola
- Jupiter
- Azad Mobility
- iSpace
- Jinfra
According to the opposition, these companies represent investments worth ₹6,215 crore that have moved away from the state.
Major Setback for the MSME Sector?
According to the opposition:
Small and medium enterprises (MSMEs) in Andhra Pradesh are facing a severe crisis.
They cite the following figures:
- MSMEs closed: 4,520
- Jobs lost: 48,477
The opposition further argues that while central government data indicates only 22,167 new jobs from recent investments, the state has suffered a net employment loss of 26,310 jobs.
Has Andhra Pradesh Fallen to 8th Place in the Investor Friendly Index?
The opposition also refers to Andhra Pradesh’s performance in the Investor Friendly Index.
According to them:
- Andhra Pradesh, which had consistently remained among the leading investment destinations since 2019, has now slipped to 8th place.
- The ranking was reportedly prepared based on:
- Feedback from 131 industrialists across the state.
- Performance across eight key sectors.
Investor Friendly Index
| State | Score |
|---|---|
| Gujarat | 56.6 |
| Andhra Pradesh | 48.7 |
The opposition questions that if the state truly attracted ₹29 lakh crore in investments, why investors themselves ranked Andhra Pradesh only eighth.
Has Andhra Pradesh’s Police System Fallen to 26th Place?
The opposition also criticises the state’s governance and law enforcement.
According to them:
- The implementation of what they describe as “Red Book governance” has adversely affected the state’s administration.
- As a result, they allege that Andhra Pradesh has fallen to 26th place in the national police performance rankings.
Key Figures Highlighted by the Opposition
| Indicator | Figure Cited by Opposition |
|---|---|
| State Own Tax Revenue Rank | 22nd |
| Tax Revenue Growth | 1.97% |
| Revenue Deficit | ₹60,285 crore |
| Fiscal Deficit | 5.09% |
| Borrowings in Two Years | ₹3,59,157 crore |
| GST Share in GSDP | 2.20% → 1.90% |
| Investments Reported by Centre | ₹6,962 crore |
| Investments Allegedly Lost | ₹6,215 crore |
| MSMEs Closed | 4,520 |
| Jobs Lost | 48,477 |
| Net Job Loss (Opposition Estimate) | 26,310 |
| Investor Friendly Index Rank | 8th |
| Police Performance Rank | 26th |
Ultimately, the Data Will Decide
Based on the 2024–25 CAG figures, the opposition has mounted a strong criticism of the Chandrababu Naidu-led Andhra Pradesh government over its economic and industrial performance. They argue that slow growth in state tax revenues, a high revenue deficit, rising borrowings, a declining GST share, questions over investment claims, closure of industries, job losses, a lower investor-friendly ranking, and declining police performance together indicate a widening gap between the government’s public claims and official statistical data.
The state government, however, is expected to present its own explanation and interpretation of these figures, making the debate over Andhra Pradesh’s economic performance likely to continue.
