Amaravati, Nov 16, 2025: YSR Congress Party (YSRCP) leader and former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Sunday highlighted what he described as “weakness” in the state’s fiscal indicators, referencing data from the Comptroller and Auditor General (CAG) for the first half of FY 2025-26.

According to Reddy, the figures paint a concerning picture:

• The state’s own tax revenues grew just 7.03% year-on-year in the first half of the fiscal year.
• Combined GST and Sales Tax revenues rose only 2.85%, reflecting minimal growth.
• Over the two-year period from 2023-24 to 2025-26, the compounded annual growth rate (CAGR) of the state’s own tax revenues stood at only 2.75%, far below the government’s projections.
• Capital expenditure also contracted at a CAGR of 16% over the same period, indicating deeper structural fiscal challenges.

Reddy criticised the current government for claiming robust GSDP growth of 17.1% for FY 2025-26, calling it misleading in light of stagnant revenue performance. He noted that such high GSDP growth should normally generate a corresponding increase in tax revenue—around 15% CAGR—but the actual 2.75% rate exposes a mismatch between projections and real outcomes.

He also pointed to the Q1 FY 2025-26 performance, where:

• State own revenues rose by only 3.47%,
• Aggregate GST and Sales Tax revenues fell compared to the previous year,
• Yet the government claims GSDP grew 10.5%, which Reddy described as “illogical considering declining consumption-linked revenues.”

Comparing with the previous YSRCP regime, he said that between 2019 and 2024, own tax revenues grew at 9.87% CAGR, broadly in line with GSDP growth of 10.23%, making the current slowdown more apparent.

Reddy also flagged the rapid increase in government debt, noting that the present regime has contracted borrowings exceeding ₹2 lakh crore, amounting to 62% of the previous government’s total over five years.

No immediate response was available from the ruling Telugu Desam Party (TDP) at the time of reporting.

The former CM’s observations underscore growing political scrutiny over the state’s fiscal management and revenue performance, especially in the context of ambitious GSDP growth targets versus actual tax collection trends.