Andhra Pradesh Chief Minister Accuses Previous Government of Economic Mismanagement, Claims ₹7 Lakh Crore Loss

In a dramatic move on Friday, Andhra Pradesh Chief Minister N. Chandrababu Naidu released a white paper accusing the previous YSRCP government, led by Jagan Mohan Reddy, of severely damaging the state’s economy, estimating a loss of up to ₹7 lakh crore. Naidu’s allegations include a decline in the agriculture sector’s growth from 16% to 10.3% and a drop in the service sector’s growth from 10.3% to 9.9% under Reddy’s leadership. He criticized the former administration for alleged misrule, looting of natural resources, and poor policy decisions that he claims led to substantial financial losses and a deteriorated economic landscape.

The white paper details significant financial discrepancies, including a ₹45,000 crore loss in the Polavaram project and damages totaling ₹7,900 crore. Naidu also accused the YSRCP regime of causing a ₹12,250 crore increase in power costs due to short-term power purchases, ₹7,000 crore in losses from illegal sand mining, and a ₹9,750 crore revenue loss from mineral wealth. The document highlights a stark rise in state debt from ₹3.75 lakh crore in March 2019 to ₹9.74 lakh crore by mid-2024, attributing these issues to inefficiencies and mismanagement under the previous government.

In response to the economic challenges, Union Finance Minister Nirmala Sitharaman announced a special financial support package of ₹15,000 crore for the development of Andhra Pradesh’s new capital city during the 2024-25 fiscal year. The capital project, initially proposed by Naidu, has seen significant political and financial implications, with the Telugu Desam Party, Naidu’s party, remaining a key ally in the BJP-led coalition government at the Centre.

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