‘Jagan Reddy’s government destroyed Andhra economy': Naidu releases white paper on state finances
- In Reports
- 08:21 PM, Jul 26, 2024
- Myind Staff
On July 26th, Andhra Pradesh Chief Minister N. Chandrababu Naidu released a white paper accusing the previous YSRCP government, led by Jagan Mohan Reddy, of devastating the state's economy and resulting in a loss of up to ₹7 lakh crore.
While presenting the white paper on the state's finances in the Andhra Pradesh Assembly, Naidu alleged that under Reddy's leadership, the growth rate of the agriculture sector had decreased from 16 percent to 10.3 percent, and the service sector's growth rate had fallen from 10.3 percent to 9.9 percent. He further claimed that the 'misrule' that began with Reddy's tenure led to the plundering of natural resources, implementation of anti-industrial policies, and alterations to the capital city plan.
The document claimed a ₹45,000 crore loss related to the Polavaram project, along with other damages amounting to ₹7,900 crore. Naidu stated, while presenting the white paper in the assembly, that Andhra Pradesh was outpacing Telangana in growth from 2014 to 2019. However, he alleged that from 2019 to 2024, the state's economy was severely damaged, with farmers' incomes declining and debt levels increasing.
Naidu claimed that power costs increased under the YSRCP regime due to short-term power purchases, adding an additional burden of ₹12,250 crore. He also alleged that illegal sand mining led to a loss of ₹7,000 crore. According to Naidu, the plundering of mineral resources resulted in a revenue loss of ₹9,750 crore. He criticised the cancellation of the Amaravati city project, the Polavaram project, and various energy contracts, stating that these actions had eroded investor confidence and tarnished the state's brand image.
The Telugu Desam Party chief reported that the state's debt increased from ₹3.75 lakh crore on March 31, 2019, to ₹9.74 lakh crore by June 12, 2024. The white paper indicated that, despite the challenges posed by COVID-19, Andhra Pradesh should have collected an additional ₹52,197 crore. It also highlighted 'inefficiencies' and 'mismanagement' under the previous government.
The white paper also highlighted an increase in state debt from ₹3,75,295 crore in March 2019 to ₹9,74,556 crore by mid-2024. On July 23, while presenting her seventh consecutive Budget, Union Finance Minister Nirmala Sitharaman announced a special financial support package of ₹15,000 crore for the development of Andhra Pradesh's new capital city during the financial year 2024-25. The concept of Amaravati as the state's capital was introduced by Chief Minister Chandrababu Naidu during his first term from 2014 to 2019. Naidu's Telugu Desam Party is currently a key ally in the BJP-led coalition government at the Centre.
Image source: The Indian Express
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