Vijayawada: Former chief minister Y S Jagan Mohan Reddy, in a tweet, highlighted concerns over Andhra Pradesh’s financial stability based on the CAG’s Monthly Key Indicators for Q1 of FY 2025-26. The data reveals weak revenue growth, reflecting poor fiscal management in a state already struggling post-bifurcation. Effective public spending on welfare and development is crucial to stimulate private investment and consumption, but corruption has stifled revenue growth across categories.
He said the state-owned tax and non-tax revenues saw dismal growth in Q1, with GST and sales tax — key indicators of consumption — registering declines compared to the previous year. Overall, the state’s own revenues grew just 3.47 per cent while total revenue receipts (including central funds) rose 6.14 per cent. “Alarmingly, debt surged by 15.61 per cent in just three months, exposing excessive reliance on borrowing,” he added.
The low or negative growth in multiple revenue categories signals a loss of economic buoyancy. Without corrective measures, Andhra Pradesh’s financial health risks further deterioration, jeopardising development and welfare initiatives, Jagan Mohan Reddy said.
