Amaravati, March 11 YSRCP supremo Y S Jagan Mohan Reddy accused the Andhra Pradesh government led by N Chandrababu Naidu of accumulating debts equivalent to 97% of the borrowing during his 5-year tenure in just two years.
Reddy claimed that the TDP-led government had already borrowed Rs 3.2 lakh crore in two years, compared to the Rs 3.3 lakh crore borrowed between 2019 and 2024.
TDP spokesperson N Vijaya Kumar termed these remarks "pathetic," stating that it was unfortunate that a former chief minister was making such claims.
He dismissed Reddy's accusations as "absurd" and stated that he would not even consider them to be false.
According to the white paper presented by the government in 2024, the total loans during Reddy's five-year term amounted to Rs 9.74 lakh crore.
This includes Rs 4.38 lakh crore of market borrowing loans as of June 2024.
Addressing a press conference at the YSRCP central office in Tadepalli, Reddy stated that Naidu had incurred debts of Rs 3.2 lakh crore in a short period, including liabilities contracted or permitted by the TDP-led government.
"During the YSRCP government's tenure, even if all forms of liabilities are considered, the increase is... Rs 3.31 lakh crore. In contrast, the liabilities contracted to date (including gross off-budget borrowing) by the TDP-led government are Rs 3.2 lakh crore," said Reddy, citing CAG reports and other sources.
Observing that there was increased dependence on borrowing for financing expenditure under the NDA alliance government, the former CM stated that the revenue deficit increased by 56% in FY25 to Rs 60,285 crore compared to Rs 38,682 crore in the final year of the YSRCP government, 2023-24.
Similarly, the opposition leader pointed out that the fiscal deficit rose by 30% to Rs 81,071 crore in the 2024-25 financial year under the TDP-led NDA government, compared to Rs 62,720 crore under the previous YSRCP regime in FY24.
Despite unexpected challenges such as the Covid-19 pandemic, he said that the previous YSRCP government managed the fiscal deficit to GSDP ratio around 4.1% per year on average, compared to over 5% under the current NDA government.
Criticizing Naidu for inflicting economic devastation on the southern state, Reddy accused him of consistently violating the Net Borrowing Ceiling (NBC) but noted that despite the Covid-19 pandemic and "fulfilling" all promises, the previous YSRCP government had borrowed Rs 12,000 crore less than the NBC.
According to Reddy, Naidu had borrowed Rs 29,099 crore beyond the NBC during the previous TDP government between 2014 and 2019.
Naidu did not maintain a minimum balance in the treasury for 357 days, and it was maintained for only eight days in FY25, the YSRCP chief said.
Reddy attributed the increase in revenue and fiscal deficit to what he called "rampant corruption".
He alleged that Naidu, his associates, the "yellow media," and MLAs are "plundering" resources such as sand, quartz, granite, laterite, land, and others.
According to Reddy, Naidu handed over 54 acres of land valued at Rs 5,000 crore to his relative in Visakhapatnam, hinting at Vizag MP M Sribharat, who runs the Gitam chain of educational institutions.
Further, he alleged that the coalition government is offering land to real estate companies at the lowest cost and in turn, receiving Rs 2,000 per sq ft of development.
The former CM also claimed that "Naidu falsely informed the state Assembly that only Rs 60,485 crore debts were taken in 2024-25 when the actual figure was Rs 81,082 crore".
He also said that YSRCP will write to the cabinet secretary, Department of Personnel and Training, and Finance Secretary regarding this matter, furnishing the CAG report.
Further, Reddy accused CM Naidu of "politicizing" the Tirupati laddu ghee adulteration issue, despite all the fingers "pointing towards him".
He claimed that the recent Assembly budget session was used to spread lies, false propaganda, and level baseless allegations against political adversaries while genuine questions raised by the opposition on issues of public interest remained unanswered.
According to Reddy, Naidu has scant respect for God and that several questions on the Tirupati laddu issue were unanswered.
“From tenders to supply of ghee and accepting rejected tankers took place during Chandrababu Naidu’s term… he has been levelling baseless allegations against us on one hand and has silently hiked the price of ghee to Rs 761 per kg and it was a deliberate attempt to benefit his coterie,” he alleged.
Further, Reddy charged Naidu with "failing" to fulfil his poll promises.
Dismissing the allegations, TDP spokesperson N Vijaya Kumar said the coalition government took only Rs 53,866 crore worth loans in FY25, while the previous YSRPC government availed Rs 90,000 crore loans in its final year.
“He (Jagan) is trying to combine whatever CRDA (Capital Region Development Authority) has taken and the loans taken by Markfed, Civil Supplies Department and DISCOMs. Those are all independent organisations,” said Kumar.
DISCOMs are completely independent entities, so it cannot be taken into account, he added.