Financial distress continues due to high debt and low revenue growth, says Jagan

YSRC president Y.S. Jagan Mohan Reddy said in a message on X on Saturday that the commitment given by the TDP and JSP to the people at the time of the elections to increase the government revenues rapidly and bring down the debt proved to be mere rhetoric.

When they were in the Opposition in 2019-24, the parties alleged that the YSRCP government’s policies caused liabilities to shoot up and the capital expenditure in crucial sectors was negligible, leading to economic slowdown.

“Now, a glance at the performance of the coalition government on the fiscal front exposes its failures,” he said.

Mr. Jagan Mohan Reddy said during FY 2024-25, the Year-on-Year (YoY) growth of the government’s own revenues, including tax and non-tax, was 3.08%. If the economy was really growing at a rate of 12.02%, as “falsely claimed” by the government, why would the growth be that low, he questioned. Financial distress continued in the first four months of FY 2025-26 contrary to expectations of some recovery, he said.

Also, the government fared poorly as far as the aggregate of the GST revenues and sales tax revenues was concerned as it was lower during the first four months of FY 2025-26.

Further, he said if the CAGR of revenues over the first four months of 2023-24 and 2025-26 were taken into consideration, the situation was distressing as the State’s own revenues grew at only 2.39% against the normal of 10%.

Coming to the State debt, the growth of liabilities during 2019-2024 was ₹3,32,671 crore.

However, the aggregate liabilities during the first 14 months of the coalition government was high at ₹1,86,361 crore (56% of what the previous government borrowed in five years), he claimed.

Keeping in view the low revenue growth and rise in debt, the NDA partners should rethink their governance model, which allegedly led to rampant corruption, he advised.