Senior YSR Congress Party (YSRCP) leader and former Andhra Pradesh Finance Minister Buggana Rajendranath on 20 July launched a sharp attack on the N. Chandrababu Naidu-led coalition government, alleging that the state has accumulated ₹3.4 lakh crore in debt within just two years and is posting the highest revenue deficit in the country at ₹60,285 crore for the 2024–25 financial year.

Key Fiscal Allegations

Rajendranath claimed that Andhra Pradesh's own tax revenue growth has slipped to 1.97 per cent, placing the state at 22nd position nationally — behind smaller states such as Sikkim and Meghalaya. He further alleged that between 2024–25 and 2025–26, the state's own tax revenues are growing at a negative rate of -3.22 per cent.

'You go and ask any common man in any bus stand or railway station in the state, and you will get the answer,' Rajendranath said, underscoring what he described as a visible deterioration in fiscal health under the current administration.

Comparing Debt Trajectories

The former minister argued that official figures from the Comptroller and Auditor General (CAG) and the Reserve Bank of India (RBI) contradict the ruling coalition's pre-election narrative that the previous Jagan Mohan Reddy-led government had mismanaged public finances. He noted that the YSRCP's total debt over its five-year tenure stood at approximately ₹3.3 lakh crore, at a Compound Annual Growth Rate (CAGR) of 13.5 per cent — well below the 22.6 per cent CAGR recorded during the Telugu Desam Party (TDP) tenure from 2014 to 2019.

He also contended that despite the economic disruption caused by the Covid-19 pandemic, the previous administration maintained an average fiscal deficit of between 2.5 per cent and 2.6 per cent.

Criticism of the White Paper Defence

Rajendranath took particular aim at the government's use of a 'White Paper' to justify its financial position in the state Assembly. 'Does anyone give an official reply 'as per a white paper'? A white paper is a political statement; it does not carry legal sanctity,' he stated. He accused government representatives of citing inconsistent figures inside and outside the legislature, calling it a resort to 'cheap gimmicks.'

Political Representation and Capital Dispute

On the political front, Rajendranath alleged that YSRCP leader Jagan Mohan Reddy's microphone was disconnected in the Assembly whenever he attempted to speak — an accusation the ruling side has not publicly addressed. He reiterated the party's demand for recognition as the Principal Opposition, arguing that the YSRCP's voter base warrants fair democratic representation.

He also defended the previous government's decentralised capital policy, citing the Sivaramakrishnan Committee report, and warned that the currently proposed capital site is situated on a 'river flood plain' that poses environmental and seismic risks. 'We went for decentralisation because we learned from history — the integration of Andhra Pradesh and Telangana, and the various agitations,' he said.

What Comes Next

The Naidu government has not issued a formal response to Rajendranath's specific figures as of the time of reporting. With Andhra Pradesh's fiscal position expected to come under renewed scrutiny in the next budget cycle, these opposition claims are likely to intensify pressure on the coalition to publish audited debt data independently of the contested White Paper.