Jagan Mohan Reddy Flags Andhra’s Fiscal Woes, Cites Poor Revenue Growth and Rising Debt

Last Updated Jul - 26 - 2025, 05:19 PM | Source : Fela News

Former CM Jagan Mohan Reddy highlights Andhra Pradesh’s fiscal stress in Q1 FY 2025–26, pointing to weak revenue growth, rising debt, and economic slowdown as r

Jagan Mohan Reddy Flags Andhra’s Fiscal Woes

Former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy expressed concern over the state's deteriorating fiscal condition in the first quarter of the 2025–26 financial year, citing data from the Comptroller & Auditor General of India (CAG). In a post on X, he said the figures point to a worsening financial outlook for the state, which continues to struggle with the aftermath of its bifurcation. He noted that managing public finances under these circumstances remains a significant challenge.

He emphasised that strategic government spending on essential welfare and development sectors is crucial to spur private consumption and investment, creating a positive economic cycle. However, he alleged that the State’s revenue growth has remained poor across categories due to widespread corruption.

According to him, there was sluggish growth across all revenue streams, leading to weak performance in both tax and non-tax revenues during the first quarter of FY 2025–26. Jagan Mohan Reddy said the data clearly reflects that the State’s economic momentum has faltered, with some revenue streams showing negligible growth and others reporting negative growth.

He also highlighted a decline in GST and sales tax collections in the first quarter when compared to the same period last year, which itself had already shown muted growth.

In concrete terms, he pointed out that during Q1 of FY 2025–26:

The State’s own revenues grew by only 3.47% year-on-year.
Total revenue receipts, including those from the Central Government, rose by just 6.14%.
Debt levels surged sharply by 15.61%, indicating increased dependence on borrowing rather than internal revenue generation to meet government expenditure.

This, he said, underscores a troubling trend of the state relying heavily on external sources rather than strengthening its own fiscal base.