Former Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy strongly criticized the state government about Andhra Pradeshs situation. He used the 2025-26 CAG accounts to make his point. Jagan said the state economy is under stress and raised many questions about how the government is managing its finances.
Jagan said the government claims Andhra Pradesh had a 10.75% growth rate in 2025-26. The states own tax revenues actually went down by 3.22%. He thinks that if the economy was really growing people would be investing more spending more and the government would be collecting taxes. Instead Jagan said the states revenue numbers show a story.
Andhra Pradesh Revenue Collections Are Under Scrutiny
Jagan Points Out Key Financial Numbers
Jagan shared financial indicators to support his criticism of the states economic situation.
| Financial Indicator | 2023-24 | 2025-26 | Jagan’s Observation |
|---|---|---|---|
| State Own Tax Revenue | ₹85,922.23 crore | ₹86,552.68 crore | Only 0.37% growth in two years |
| Expected Revenue (at 8% growth) | — | ₹1,00,219.69 crore | Claimed major shortfall |
| Notional Loss | — | ₹13,667 crore | Alleged loss due to government policies |
| GST Revenue | ₹31,130.13 crore | ₹33,711.84 crore | Only 4.06% CAGR growth |
| Sales Tax Revenue | ₹18,475.15 crore | ₹17,811.23 crore | Revenue reportedly declined |
| State Excise Duty | ₹15,997.60 crore | ₹18,251.96 crore | Growth lower than expected despite liquor sales |
| Other Taxes | ₹10,724.65 crore | ₹5,480.35 crore | Sharp decline of 28.52% |
| Non-Tax Revenue | ₹7,432.11 crore | ₹14,828.74 crore | Included ₹9,000 crore APMDC NCDs, he alleged |
| Fiscal Deficit | ₹62,720 crore | ₹81,532.39 crore | Government increasingly dependent on borrowings |
| GSDP Growth Rate | — | 10.75% | Jagan questioned the credibility of the numbers |
| State Tax Revenue Growth | — | -3.22% | Claimed it indicates economic slowdown |
Jagan Says Andhra Pradesh Lost ₹13,667 Crore
One of the points Jagan made was about the slowdown in state revenues. He said Andhra Pradeshs own tax revenue was ₹85,922 crore in 2023-24. If the state had grown at 8% per year revenues should have been over ₹1 lakh crore by 2025-26.
Jagan said actual collections were only ₹86,552 crore, which means Andhra Pradesh lost nearly ₹13,667 crore. Jagan questioned the governments claims of “creating wealth”. Said they failed to make the state economy stronger.
People Are Worried About Falling Tax Revenue Growth
GST and Sales Tax Growth Are Weak
According to Jagan GST revenues did not grow much. He also said sales tax revenues were weak and excise duty growth was lower than expected with high liquor sales in the state.
Jagan said revenues from ” taxes” went down a lot, which contributed to a negative growth trend in state-owned tax revenues. He said the 3.22% negative growth is a warning sign that the economy in Andhra Pradesh is slowing down.
Jagan Accuses Government Of Relying Much On Borrowings
Questions Raised About APMDC NCD Funds
Jagan criticized the government for raising ₹9,000 crore through Non-Convertible Debentures (NCDs) by the Andhra Pradesh Mineral Development Corporation (APMDC).
He said these funds were used for expenses instead of creating new assets. Jagan accused the government of showing these borrowings as -tax revenue to make the financial picture look better than it really is.
Fiscal Deficit Keeps Going Up
Another major concern Jagan pointed out was the increase in Andhra Pradeshs fiscal deficit. He said the fiscal deficit went up from ₹62,719 crore in 2023-24 to ₹81,532 crore by 2025-26.
Jagan said the governments increasing reliance on borrowings raises concerns about the states financial management and long-term economic sustainability.
Jagan Questions Governments Growth Claims
“How Can The Economy Grow When Tax Revenues Are Falling?”
Jagan also questioned the credibility of the governments 10.75% growth claim. He said that normally when the economy grows tax collections go up.. In Andhra Pradesh tax revenues went down despite the government saying the economy is growing strongly.
Jagan argued that the difference between falling tax revenues and high growth claims raises doubts about the accuracy of the economic data released by the state government.
Economic Debate Turns Into Political Fight In Andhra Pradesh
Jagans comments have started a political debate in Andhra Pradesh. People are asking if the governments development claims are true or if the oppositions allegations of stress are closer to the truth.
The focus is now on how the Andhra Pradesh government will respond to the allegations made using the CAG accounts.
FAQ
What Did Jagan Say About Andhra Pradeshs Economy?
Jagan said the Andhra Pradesh economy is under stress and claimed state tax revenues declined by 3.22%.
Why Did Jagan Mention A ₹13,667 Crore Loss?
He said that if state revenues had grown at 8% per year Andhra Pradesh should have earned much more revenue by 2025-26.
What Is The Controversy Around The ₹9,000 Crore APMDC Funds?
Jagan said funds raised through APMDC NCDs were used for government expenses of creating new assets.
How Much Did The Fiscal Deficit Increase?
According to Jagan the fiscal deficit went up, to ₹81,532 crore by 2025-26.
