Even though financial problems, I will continue to provide schemes: CM Chandrababu

Andhra Pradesh Tackling Fiscal Woes, Mapping Recovery Path: Chief Minister

•    Even though there are financial problems, I will continue to provide schemes.

•    I will uphold the trust of the people… I will take on the hardships of the public.

•    With the ineffective governance of the YSRCP, the state is at the bottom in terms of financial health indicators.

•    In the past five years, the financial system has been destroyed… it has fallen worse than Bihar.

•    Under the so-called welfare of the YSRCP government, the standard of living of the people has severely deteriorated.

•    What I said in the opposition earlier, today the Niti Aayog has confirmed.

•    We are governing while facing unprecedented economic conditions never seen before.

•    We will overcome these problems… we will show welfare and development."

•    CM On the state's financial health index.

Amaravati, January 27, 2025 – The Government of Andhra Pradesh, under the leadership of Chief Minister Nara Chandrababu Naidu, has reaffirmed its commitment to addressing the state's growing fiscal challenges while outlining a clear path to recovery. The recently released Fiscal Health Index (FHI) 2025, published by NITI Aayog, underscores the state's fiscal struggles, including a crippling ₹9.75 lakh crore debt burden.

The FHI report highlighted significant challenges in managing the state’s finances. In FY 2022-23, capital expenditure reached a record low, representing only 3.5% of the total expenditure.Furthermore, committed expenditures, including salaries, pensions, and interest payments, consumed approximately 51% of revenue expenditure, severely limiting the scope for developmental investments.

 Additionally, the state's revenue growth slowed dramatically, dropping from 17.1% in 2018-19 to just 9.8% in 2022-23, while public debt escalated at an average annual rate of 16.5%. The state's debt sustainability index collapsed to zero in FY 2022-23, signaling a serious financial imbalance.

Addressing these concerns, Chief Minister Naidu emphasised the importance of fiscal discipline and the challenges posed by the state’s debt obligations. "There are debts amounting to ₹9.75 lakh crore, and contractors are now taking legal action to settle their pending payments. If the state loses its credibility, it will face even greater difficulties in securing future loans," he warned. 

He further criticised the previous government for its financial mismanagement, stating, “The NITI Aayog report is a testament to the financial destruction caused by the YSRCP. Over the past five years, poor management has resulted in deteriorating infrastructure, with roads turning into potholes and excessive borrowing pushing the state into a financial crisis."

Despite these challenges, Naidu expressed confidence in the government's ability to restore fiscal stability. "We will get the state back on track. People have trusted us, and we will honor that trust," he assured. He reiterated his commitment to transparency and welfare, stating, "The funds allocated by the central government for development are not being diverted for welfare. If necessary, I am ready to bear any difficulties to ensure that farmers and women do not face hardships."
The Chief Minister also highlighted ongoing investments that promise to generate significant employment opportunities, saying, "Companies like Green Energy, ArcelorMittal, NHPC, BPCL, along with Reliance, LG, and solar companies, are investing in the state. These investments will create 4.1 lakh jobs for our youth." Furthermore, he outlined the government's focus on key sectors such as irrigation, having spent ₹68,000 crore on water projects that have already improved groundwater levels. "By June, we will ensure that water reaches the fields. Every rupee spent on creating wealth must yield tangible results," he stressed.

In drawing comparisons to global success stories, Chief Minister  pointed to the importance of policy-driven development. "China implemented reforms in 1978, while Russia began political reforms in the 1980s. Today, China is a global superpower, while Russia has faltered. The key difference lies in how public policies were crafted and executed," he explained.

Acknowledging the consequences of past fiscal mismanagement, Naidu emphasized, "We cannot ignore the fact that five years have been lost. Had we made progress during this time, we would be in a much better position today. This is an ongoing process that requires consistent effort."
In closing, the Chief Minister reassured the public, "People have placed their trust in me, and I will deliver. We will correct the past mistakes, establish governance based on ten key principles, and lead the state toward a brighter future." He added, “We always focus on health—only when health is good can we achieve anything. Similarly, without strong financial health, we cannot progress. We must focus on development to create wealth, and avoid further borrowing that could exacerbate our challenges."