Jagan Reddy accuses Chandrababu Naidu of leading Andhra Pradesh to 'debt trap'

Former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy has hit out at the Chandrababu Naidu-led government, accusing it of pushing the state into a “debt trap” by borrowing heavily with “nothing to show” in terms of development or welfare.

Taking to X (formerly Twitter), the YSR Congress Party (YSRCP) chief claimed that the Telugu Desam Party (TDP) government borrowed 44 per cent of the total debt his administration took over five years—all within just 12 months.

“@ncbn garu, you claim decades of experience as CM and deep understanding of governance. But in one year, your government borrowed 44% of what we did in five, without delivering any development or welfare,” Jagan wrote.

The sharp criticism comes amid renewed scrutiny of Andhra Pradesh’s fiscal situation. Chief Minister Chandrababu Naidu had earlier acknowledged that the state is burdened with a debt of Rs10 lakh crore and is paying Rs 40,000 crore annually in interest.

While Naidu blames the YSRCP for leaving the economy in disarray, he has positioned his government as the one trying to bring financial discipline and revive stalled projects.

Naidu has described the TDP as a model of administrative discipline and accused YSRCP of reckless fiscal decisions during its tenure.

TDP has blamed the previous regime for leaving behind empty coffers and stalled projects, while the opposition counters that the Naidu government is indulging in unsustainable borrowing without delivering on ground-level development.

Following the return of the Telegu Desham Party to power in 2024, both the ruling and the opposition have been locked in political confrontation over the state’s financial condition. The exchange has intensified as the TDP prepares to mark one year in office, with state finances becoming a key political flashpoint.