Yuvajana Sramika Rythu Congress Party (YSRCP) president and former chief minister YS Jagan Mohan Reddy sharpened his attack on the Telugu Desam Party (TDP)-led National Democratic Alliance (NDA) government in Andhra Pradesh, accusing it of presiding over ‘economic distress’ despite repeated claims of robust growth. Citing provisional figures from the Comptroller and Auditor General (CAG), he said the state’s tax revenues contracted by 3.22% in FY26 even as the government projected GSDP growth of 10.75%.
“Therefore, what was witnessed over the last two years was unambiguous signs of economic distress resulting from policy paralysis and corruption, tales of rapid growth for the purposes of diversion, and adoption of un-constructional and unhealthy means for raising debt,” Jagan Reddy said in a post on X.
𝟮 𝘆𝗲𝗮𝗿 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗶𝗻𝗱𝗶𝗰𝗮𝘁𝗶𝗻𝗴 𝘀𝗲𝘃𝗲𝗿𝗲 𝗳𝗶𝘀𝗰𝗮𝗹 𝘀𝘁𝗿𝗲𝘀𝘀
The provisional accounts for the financial year 2025-26 have been published by the CAG, these accounts bring to light unsettling facts regarding the State.
On one hand Mr. Chandrababu… pic.twitter.com/jyQe6sUJVv
— YS Jagan Mohan Reddy (@ysjagan) May 16, 2026
Tax revenues Vs growth claims
The former chief minister argued that the numbers released in the state budget documents do not match the government’s claims of a fast-growing economy. According to him, a genuinely expanding economy would typically show stronger consumption, higher investment and, in turn, better tax collections. Instead, he said, Andhra Pradesh’s own tax revenues declined by 3.22% against revised estimates that had projected 9.60% growth.
Jagan Mohan said that if the state had truly achieved 9.6% revenue growth, the government’s Gross State Domestic Product (GSDP) projection of 10.75% could have appeared credible. But, he argued, the actual contraction in tax receipts points in the opposite direction. He said the figures show “severe fiscal stress” rather than a booming economy.
Andhra Pradesh’s projected 10.75% GSDP growth rate for FY26 reflects the state government’s claim that the economy is expanding rapidly through higher investment, infrastructure spending and industrial activity. Supporters of the estimate argue that such growth signals renewed confidence in the state’s development agenda, while critics say it must be backed by stronger tax collections, private investment and visible gains in employment and revenue. The figure has now become a key point of political debate, with the ruling alliance presenting it as evidence of progress and the opposition questioning whether the numbers match ground reality.
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Comparison of statistics with 2023-24
To strengthen his case, Jagan Reddy compared the current numbers with the last fiscal year of his administration. He said Andhra Pradesh had recorded tax revenues of Rs 85,922 crore in 2023-24. On that basis, he argued that even an 8% annual rise should have taken collections beyond Rs 1 lakh crore by FY26.
Instead, he added the provisional figures show tax revenues of only Rs 86,553 crore. He described the gap as a “notional loss” of Rs 13,667 crore and asked whether this could really be called “Sampada Srushti,” the term the Chandrababu Naidu government has used to describe wealth creation.
“Is this his Samapada Srushti. Lower revenues by Rs 13,667 crore even when compared with a modest benchmark,” he said.
Allegation over NCD funds
Jagan also revived his attack on the Rs 9,000 crore raised through non-convertible debentures by the Andhra Pradesh Mineral Development Corporation in May 2025. He alleged that the money was used for revenue expenditure rather than asset creation, and claimed that private Non-Convertible Debentures (NCD) holders were given access to the state’s Consolidated Fund in violation of constitutional norms.
“No asset creation took place from this NCD issuance,” he alleged, adding that the amount appeared in the accounts as non-tax revenue during 2025-26. He called the borrowing method “unconstitutional and unhealthy” and said it reflected the government’s poor financial management.
There was no immediate reaction from the TDP to Jagan Mohan Reddy’s remarks. His comments are likely to intensify the political clash between the YSR Congress Party and the ruling coalition, especially as the state approaches two years of TDP-led governance in June.
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The Andhra Pradesh government has consistently defended its economic strategy, saying the state is on a path of accelerated growth driven by infrastructure spending and industrial activity. Jagan Reddy’s latest criticism, however, places fresh pressure on that narrative and puts fiscal numbers at the centre of the political debate.
Why the fiscal data matters?
The controversy shows how budget documents and CAG figures have become key weapons in Andhra Pradesh’s political contest. Jagan Mohan Reddy is trying to argue that hard fiscal data tells a different story from the government’s growth claims, while the ruling alliance is likely to maintain that headline numbers and development projects justify its position. At stake is not just a political argument over statistics, but a broader dispute over whether Andhra Pradesh is expanding steadily or slipping under the weight of weak revenues and debt stress.
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