Jagan raises concern over increased borrowings; flags NDA govt’s fiscal management

Amaravati: Former chief minister and YSRCP chief YS Jagan Mohan Reddy has alleged that the TDP-led NDA government in just one year availed a debt equivalent to 44 per cent of the total borrowings of the previous YSRCP government between 2019-2024.

The former chief minister said that the state government had no achievements to show regarding development or welfare.

In a post on X, he cited figures from the Comptroller and Auditor General (CAG) and the Ministry of Statistics and Programme Implementation (MOSPI).

"NCB garu, you claim that you possess decades of experience as CM and your so-called deep understanding of governance, but what have those decades of experience delivered? In just one year, your government availed a debt equivalent to 44% of the total debt our government availed in five full years. This is even though during this one year, your government had nothing to show for, with respect to development or welfare," he wrote on X.

Figures released by CAG & MOSPI reveal shocking facts about the inefficient fiscal mismanagement by your Government-

1. Fiscal Deficit to GSDP rose from 4.08% → 5.12%

2. Revenue Deficit to GSDP jumped from 2.65% → 3.61%

3. Debt-to-GSDP now stands at a staggering 35.64%, despite the absence of any adverse circumstances such as the pandemic outbreak.

4. Only 23.49% of borrowings were used for capital expenditure in 2024-25, while under our governance, it was 33.25%.

Jagan said that the revenue deficit jumped from 2.5 to 3.5 per cent, while the debt-to-GSDP ratio reached over 35.64 per cent, the highest since the Covid-19 pandemic.

"Under the YSRCP rule, 33.25 per cent of borrowings went to capital expenditure, but under TDP, only 23.49 per cent was used for development purposes. The previous YSRCP government had to borrow more only during pandemic-induced disruptions, while TDP escalated borrowings without such circumstances, indicating inefficient financial governance," he said.