Amaravati (Andhra Pradesh) [India], May 16 (ANI): Former Chief Minister and YSRCP chief YS Jagan Mohan Reddy on Saturday launched a sharp attack on Andhra Pradesh Chief Minister N Chandrababu Naidu, citing CAG provisional accounts for 2025-26 and alleging severe fiscal stress in the state.

Jagan said the official data presents a contradiction between the government's claim of strong economic growth and the actual financial position of the state.

He claimed that while the state has projected a Gross State Domestic Product (GSDP) growth of 10.75 per cent, its own tax revenues have reportedly declined by 3.22 per cent during 2025-26.

In a post on X, Reddy wrote, 'On one hand Mr. Chandrababu Naidu garu claims of a galloping State with a year-on-year GSDP growth rate of 10.75% during FY 2025-26. In a manner that completely contrasts this, the tax revenues of the State Government have contracted by 3.22% during FY 2025-26. In any State that is progressing fast, there would be heightened levels of investment and consumption, reflecting in the form of higher tax collections by the State Government. In reality, the State Government tax revenues have declined by 3.22% against the revised estimates of a 9.60% growth over previous year during 2025-26, as shown in volumes placed for State Budget for FY 2026-27.'

https://x.com/ysjagan/status/2055569421947613288?s=20

He further claimed that, based on a modest growth benchmark, the state should have collected over Rs 1 lakh crore in tax revenue, but actual collections stood at Rs 86,552.68 crore, resulting in what he described as a notional loss of Rs 13,667 crore.

'If the State tax revenues have actually grown by 9.60%, then one would believe the State Government's GSDP growth estimates of 10.75%. However, what was witnessed was a contraction to the tune of 3.22% (-.%), in own tax revenues. The State tax revenues during 2023-24 (last year of the previous Government) were, Rs. 85,922.23 crores. After two years, even if a modest 8% growth was achieved, the tax revenues in the year 2025-26 should have been, Rs 1,00,219.69 crores. However, what was achieved was only 86,552.68 crores during 2025-26. Therefore, the notional loss under this Government during this year is to the tune of Rs. , crores. Mr. @ncbn garu speaks of 'Sampada Srushti', is this his Samapada Srushti? lower revenues by Rs. 13,667 crores even when compared with a modest benchmark?' the post read.

He also questioned the use of funds raised through a Rs 9,000 crore NCD issuance by APMDC, alleging that the money was used for revenue expenditure instead of asset creation.

He claimed this reflects financial mismanagement and rising fiscal stress in the state over the last two years.

'As we have always been saying, the Rs. 9,000 crores raised through NCD issuance by APMDC during May 2025, was actually intended to be utilised for meeting Government revenue expenditure. No asset creation took place from this NCD issuance. In an unprecedented manner, private NCD holders were allowed access to the Consolidated Fund of the State in violation of all constitutional norms,' the post further read. (ANI)