Former Andhra Pradesh Chief Minister and YSR Congress Party President Y. S. Jagan Mohan Reddy on Wednesday launched a sharp critique of the state government’s financial management and welfare policies, alleging that the current administration has pushed the state into a dangerous fiscal situation while simultaneously weakening welfare support for citizens.
Addressing a press conference, Jagan said official audit findings have exposed what he described as “serious financial mismanagement” during the current government’s tenure.
Rising Fiscal Stress
According to Jagan, the state’s fiscal indicators have deteriorated significantly within the first year of the present government.
He pointed out that the revenue deficit has increased by nearly 56 percent between 2023–24 and 2024–25. The fiscal deficit, he said, has also grown by around 30 percent during the same period.
Jagan warned that the situation is becoming increasingly alarming. By the first ten months of 2025–26, the fiscal deficit had already reached 39.74 percent of the projected levels.
He further stated that the fiscal deficit as a share of the state’s Gross State Domestic Product reached 5.089 percent in 2024–25, compared with an average of 4.11 percent during the five years of the previous YSRCP government.
“These numbers clearly show who managed the economy responsibly and who has damaged it,” he said.
Borrowings and Fiscal Limits
Jagan also alleged repeated violations of borrowing limits.
He said that between 2014 and 2019, the previous administration had exceeded the permitted Net Borrowing Ceiling by ₹29,099 crore.
In contrast, he claimed that during the YSRCP government from 2019 to 2024, borrowings were kept ₹12,708 crore below the permitted limit.
However, he said the situation has reversed again after the change in government. In 2024–25 alone, borrowings exceeded the permitted ceiling by ₹17,953 crore.
According to him, total borrowings raised by the current government in just two years have reached ₹3.2 lakh crore. He also claimed that nearly 96 percent of the borrowings made during the five-year YSRCP tenure were matched within these two years.
Allegations of Hidden Debt
Another major concern raised by Jagan relates to discrepancies between government statements and audit figures.
He said the government claimed borrowings of ₹60,485 crore for 2024–25 in its budget documents. However, the Comptroller and Auditor General reportedly placed the figure at ₹81,071 crore.
“This means nearly ₹20,000 crore of debt has been underreported,” he alleged.
He further questioned the government regarding off-budget borrowings. According to him, several state government entities have raised loans backed by government guarantees, but the government has not disclosed these liabilities.
The YSRCP, he said, plans to raise formal complaints regarding alleged misleading information provided to the legislature.
Treasury and Cash Management Concerns
Jagan also raised concerns about the state treasury’s liquidity position.
He claimed that during 2024–25 the state treasury maintained minimum cash balances for only eight days during the entire year. On 357 out of 365 days, he alleged, the treasury did not maintain even the minimum required balance.
This, he argued, indicates that the government is increasingly dependent on short-term borrowing and advances to manage routine expenditure.
Allegations of Revenue Loss and Corruption
Jagan attributed the state’s revenue challenges to what he described as widespread corruption in the exploitation of natural resources.
He alleged irregularities in sectors such as sand, soil, silica, quartz, laterite, granite, liquor licensing, land transactions and power purchase agreements.
“When resources are being looted, how will the state generate revenues?” he asked.
Land Controversy in Visakhapatnam
The former chief minister also alleged irregularities in the allocation of government land in Visakhapatnam.
He claimed that 54 acres of government land valued at around ₹5,000 crore were being transferred at throwaway prices and alleged that the land was being encroached upon by individuals linked to political leaders.
He said land had allegedly been levelled using heavy machinery and government boards removed to facilitate occupation.
According to him, these actions demonstrate how public assets are being misused.
Welfare Promises and Implementation
A significant portion of Jagan’s press conference focused on what he described as unfulfilled welfare promises.
He questioned why the government had not implemented several schemes promised during elections, including unemployment allowance and financial assistance for women between 18 and 60 years of age.
He also said the government had promised pensions of ₹4,000 for members of Scheduled Castes, Scheduled Tribes, Backward Classes and minority communities above 50 years of age, but no clarity has been given on when the scheme will begin.
Pension Cuts
Jagan alleged that the government has already removed 564,709 beneficiaries from the pension system.
He claimed that more than 25,000 pensions are being discontinued every month, while no new beneficiaries are being added despite large numbers of pending applications.
Farmer Distress
The former chief minister also raised concerns about the agricultural sector.
He said farmers are facing heavy losses due to falling crop prices. The price of chilli, he noted, has fallen from ₹26,000 per quintal to around ₹18,000 within a month.
Chickpea farmers are reportedly selling below the minimum support price of ₹5,875 per quintal, while maize farmers are receiving between ₹1,400 and ₹1,500 despite an MSP of ₹2,400.
According to Jagan, maize farmers alone may suffer losses of nearly ₹3,500 crore.
He also alleged that insurance premiums had not been paid, leading to crop loss compensation of ₹3,500 crore remaining unpaid for the 2023–24 and 2024–25 agricultural seasons.
Input subsidies for farmers affected by cyclones have also not been released, he said.
Education and Welfare Dues
Jagan also highlighted pending dues under education schemes.
According to him, arrears under fee reimbursement and hostel support schemes such as Vidya Deevena and Vasathi Deevena have reached ₹6,428 crore for 2024–26.
He said that if the liabilities for the upcoming year are included, the required expenditure should be around ₹10,328 crore. However, only ₹2,766 crore has been allocated in the latest budget.
“This raises serious questions about how students will continue their education,” he said.
Employees and Welfare Workers
Jagan also pointed to pending dues for government employees amounting to ₹36,000 crore. He said the government has not clarified its position on implementing revised pay scales or interim relief.
He further alleged that commitments made to ASHA workers and Anganwadi workers have not been fulfilled.
Women’s Welfare
The former chief minister accused the government of discontinuing several welfare schemes introduced during the YSRCP administration.
These include programmes such as Aasara, Cheyutha, EBC Nestham, Kapu Nestham, Jagananna Thodu, Jagananna Chedodu, Netanna Nestham, Vahana Mitra and zero-interest loan schemes for women.
He said these schemes had significantly strengthened women’s financial independence.
Housing and Infrastructure
Jagan also criticised the government’s housing policy.
He said that during the YSRCP government, 31 lakh house site pattas were distributed and 21 lakh houses were sanctioned, with over 10 lakh houses completed.
He alleged that the current government has not distributed a single new house site or sanctioned any new houses in the past two years.
He also questioned the future of 17 medical colleges initiated earlier and said that dues of ₹3,150 crore under the Aarogyasri health scheme remain unpaid.
According to him, network hospitals have warned that they may stop providing services if payments are not cleared.
Conclusion
Jagan concluded by stating that the gap between the government’s public claims and the actual fiscal and governance situation is becoming increasingly visible.
He accused the government of prioritising publicity while failing to address the economic pressures faced by farmers, students, employees and welfare beneficiaries.
“These numbers and facts are clear evidence of who governed responsibly and who is damaging the state’s financial system,” he said.