Amaravati
Andhra Pradesh faces a staggering ₹1.46 lakh crore shortfall for the 2024-25 fiscal year, according to Chief Minister N. Chandrababu Naidu. On Friday, he presented a White Paper on state finances in the Assembly, attributing this gap to economic mismanagement over the past five years.
CM Naidu criticized the previous YSR Congress Party administration for poor governance, declining growth rates, and increasing debt. He pointed out that while the immediate expenditure gap is ₹11,685 crore, including overdue payments raises this deficit to ₹1,46,909 crore. Specifically, unpaid dues to vendors and schemes total ₹1,13,244 crore, with an additional ₹21,980 crore owed to employees.
The White Paper estimates the state’s total receipts for the current year at ₹2,39,140 crore, against essential expenditures of ₹2,50,825 crore. Naidu highlighted a dramatic increase in state debt, from ₹3.75 lakh crore to ₹9.74 lakh crore, risking a debt crisis. He blamed ineffective policies and corruption for revenue losses and the destruction of growth opportunities, particularly in projects like Amaravati and Polavaram.
Naidu also criticized the previous administration for halting the Amaravati project, resulting in a loss of ₹2 lakh crore and impacting nearly 30,000 farmers. The Polavaram project delays alone caused damages estimated at ₹52,900 crore.
