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Jagan warns of Andhra's fiscal distress, cites CAG report

Former CM of Andhra Pradesh YS Jagan Mohan Reddy averred that the CAG's monthly key indicators for the first quarter reflect a "precarious outlook" for the financial health of the state.

News Arena Network - Amaravati - UPDATED: July 26, 2025, 04:21 PM - 2 min read

YSRCP chief YS Jagan Mohan Reddy - file image.


YSRCP chief YS Jagan Mohan Reddy on Saturday accused the state of having its "financial stress increase during the first quarter of FY25-26," as per the latest Comptroller and Auditor General figures. Reddy averred that the CAG's monthly key indicators for the first quarter reflect a "precarious outlook" for the financial health of the state.

 

"Financial stress escalated in the first quarter of this fiscal year. The CAG has posted the key indicators for the month in this period, and the numbers clearly reflect a unsustainable situation for the financial health of the state government," Reddy wrote in a post on 'X'.

 

Public finance management — especially in a state like Andhra Pradesh, which has been "aggravated" by the bifurcation — is a difficult task, he said.

"Only an optimal quantum of government spending in welfare and development areas can release private consumption and investment, leading to a virtuous cycle," Reddy added.

 

Party leader also blamed "extensive corruption" for having caused the weak year-on-year growth in all categories. He also said the growth was "subdued on all government revenue channels," resulting in a dismal performance in both the state's tax and non-tax revenues in the first quarter of FY25–26.

 

Also read: Andhra liquor scam: Chargesheet not names Ex-CM Jagan as accused

 

"It is clear enough that the state has lost economic buoyancy, as seen from the abysmally poor growth in some government revenue categories and negative growth in others," he asserted.

 

Noting that GST and sales tax generally mirror consumption levels, Reddy observed that figures from CAG indicated reduced revenues under these heads during the first three months of FY25-26 as against the corresponding period a year ago, which itself was muted.

 

On a year-to-year basis, the state's revenues increased by merely 3.47 per cent, whereas overall revenue receipts — comprising transfers from the Government of India — increased by 6.14 per cent in the first quarter, he added.

 

Thus, the state's dependence on sources other than its own revenues for expenditure is clear, he asserted. No reaction was available immediately from the ruling TDP.

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