Former Andhra Pradesh Chief Minister and YSR Congress Party (YSRCP) President Y.S. Jagan Mohan Reddy on Thursday, 25 June launched a sharp attack on the Telugu Desam Party (TDP)-led coalition government of Chief Minister N. Chandrababu Naidu, citing a significant decline in bank credit to Self-Help Groups (SHGs) across Andhra Pradesh over the past two financial years. Reddy alleged the fall reflects broken electoral promises and a withdrawal of state support that is pushing rural women into economic distress.

The Credit Decline: Key Numbers

According to figures cited by Jagan Mohan Reddy, SHG bank credit in Andhra Pradesh stood at ₹49,626 crore in FY 2023-24 — the final year of YSRCP's tenure. It fell to ₹41,623 crore in FY 2024-25 and further to ₹41,105 crore in FY 2025-26 under the TDP-led government — a cumulative drop of over ₹8,521 crore in two years. Reddy argued that declining credit growth signals lower productive investment, reduced incomes, and weakening rural consumption.

The Broken Manifesto Promise

Reddy pointed to a specific commitment made by the TDP-Jana Sena Party (JSP) alliance in its election manifesto: raising the loan ceiling under the SHG interest subvention scheme from ₹3 lakh to ₹10 lakh. He alleged this promise was abandoned after the coalition assumed power. In a post on X (formerly Twitter), Reddy said: 'As usual after assuming power, the TDP alliance hoodwinked the people by ignoring the commitment made.'

Interest Subvention: Zero Released in Two Years

Reddy's sharpest allegation centred on the interest subvention programme. He claimed the amount released under interest subvention in FY 2024-25 was zero, the budgeted amount for FY 2025-26 was ₹100 crore but the amount released was again zero, and the budget for FY 2026-27 is once more ₹100 crore with likely release being zero. He estimated that if the TDP's own manifesto commitment were honoured — assuming ₹6 lakh debt per SHG — the annual subvention liability would be around ₹3,000 crore, meaning beneficiaries have been deprived of roughly ₹6,000 crore over two years.

YSRCP's Record and the Broader Economic Argument

Reddy claimed that during the YSRCP government's tenure from 2019 to 2024, direct support through interest subvention alone totalled ₹4,969 crore, and programmes such as Aasara and Cheyutha provided additional support to SHG women. He also cited the state government's tax revenue growth of negative 3.22 per cent in FY 2025-26 as evidence of broader consumption decline and economic distress. The Naidu government has not yet issued a formal response to these specific claims, according to available reports.

What This Means for Rural Women

SHGs are a critical financial lifeline for millions of rural women in Andhra Pradesh, providing access to credit for livelihood activities. A sustained fall in credit flow, critics argue, directly undermines income-generating capacity and household consumption at the grassroots. With state elections still years away, the political battle over SHG welfare is likely to intensify as both sides seek to define their rural economic record.