Fiscal Crisis in Andhra Pradesh: A Call for Action

Andhra Pradesh's Chief Minister, N Chandrababu Naidu, criticized the previous YSRCP government for the state's poor fiscal health as ranked 17 out of 18 states for 2022-23. A Niti Aayog report highlighted dire fiscal challenges, citing low expenditure on development and a zero debt sustainability ranking.

Andhra Pradesh Chief Minister N Chandrababu Naidu took a strong stand on Monday, criticizing the state's fiscal management under the previous YSRCP government. He pointed to a distressing fiscal report, placing Andhra Pradesh 17th out of 18 in terms of fiscal health for the year 2022-23, lower than struggling states like Bihar, Odisha, and Jharkhand.

Presenting at a press conference, Naidu discussed the Niti Aayog Fiscal Health Index Report 2025, which used data from 2022-23 to rate states. He accused the previous administration of financial mismanagement, supported by the report's ratings in categories such as expenditure quality, revenue mobilization, and debt handling.

The report's findings on Andhra Pradesh's inability to service its debts resulted in a zero score for debt sustainability, marking it nearly impossible for the state to secure new loans. Naidu urged a return to robust developmental spending, emphasizing the decline since the 2018-19 fiscal year.

(With inputs from agencies.)