The Comptroller and Auditor General (CAG) report has exposed how dangerously the Chandrababu government is managing Andhra Pradesh’s finances. Chandrababu’s claims that the state is racing towards development have been completely demolished by the CAG’s hard data. The report clearly proves that the government is indulging only in budget jugglery to fool the people, there is no real development.
Non-Tax Revenue has collapsed
In 2024–25, the state’s revenue receipts fell by 3.51% compared to 2023–24. It is unfortunate that a government claiming “development” could not even increase revenue. Non-tax revenue dropped by a shocking 19.64%, clear proof of total failure in financial management. Even Grant-in-Aid from the Centre fell by 41.82%. When TDP is a partner in the Central government, what benefit has the state got? This situation has arisen only because of lack of coordination with the Centre.
Rs. 20,000 Cr gap between Budgeted Revenue and Actual Revenue
The budget projected revenue of Rs. 2,69,928 crore, but actual revenue was only Rs. 2,49,191 crore , a massive shortfall of Rs. 20,000 crore. The CAG has confirmed that the government’s financial planning has completely failed.
Development funds not utilised
The government failed to spend even the funds allocated for development. In 40 sectors, expenditure in 10 sectors was less than 50% of the allocation. Grants to rural and urban local bodies fell by Rs. 10,620 crore. It is surprising that a government claiming to strengthen local bodies has actually reduced funds to them. Capital expenditure was budgeted at Rs. 45,382 crore for 2024–25, but only Rs. 16,141 crore was actually spent , just 1% of the state’s GSDP. This is extremely alarming.
Capital expenditure drastically reduced
Reduced capital expenditure is dangerous for the state’s future. In 2025–26, the budget showed Rs. 40,635 crore for capital expenditure, which was later revised to Rs. 33,135 crore. But in the first 10 months, only Rs. 21,675 crore was spent. In 2024–25, the original estimate was Rs. 32,714 crore, revised to Rs. 24,072 crore, and finally only Rs. 16,141 crore was spent. The same pattern of deception continues. For 2026–27, they have shown Rs. 48,097 crore as capital expenditure. We will have to wait and see how much they actually spend.
Chandrababu violates FRBM norms
Before the elections, Chandrababu boasted that as a “senior leader” he would create wealth and stop depending on debt. But today he is taking unprecedented loans and breaking all previous records. Yet there are no new schemes for the people. All existing schemes have been cancelled. Super Six and Super Seven schemes have turned into frauds. Even after taking massive loans, capital expenditure has fallen , which CAG has warned will severely affect creation of long-term assets. The government has also violated Fiscal Responsibility and Budget Management (FRBM) norms. Revenue deficit, which should have been 2.7%, rose to 3.75%. Fiscal deficit shot up from 4% to 5.05%. The government has also failed to disclose full details of off-budget borrowings, showing lack of transparency.
Revenue Estimates revised
For 2025–26, revenue was estimated at Rs. 2,17,976.53 crore. This was later revised down to Rs. 1,96,903.53 crore. By the end of January, the government itself admitted that only Rs. 1.40 lakh crore had come in. In such a situation, even reaching the revised estimate looks difficult. Then how will they generate Rs. 2.34 lakh crore in the next financial year (2026–27)? The government and the Finance Minister must answer this. The same huge gap exists in every head , state taxes, non-tax revenue, and Central grants. The gap between what the government says, what it revises, and what actually happens is like the distance between a fox and the snake world.
Government running on ways and means advances
The CAG report reveals that the Chandrababu government ran on ways and means advances, special ways and means, and overdrafts for 357 out of 365 days. This clearly shows the pathetic state of finances. Because these advances were not repaid on time, the state had to pay Rs. 303 crore as interest to RBI. Even day-to-day expenses are being met through borrowings , a clear sign of government failure.
Debt comparison, CAG figures
Total debt of the state till 2014 (post-bifurcation): Rs. 1,40,717 crore. By the time Chandrababu left power in 2019: Rs. 3,90,247 crore. Debt added by Chandrababu (2014–19): Rs. 2,49,350 crore (CAGR 22.63%). Debt when YSRCP came to power: Rs. 3,90,247 crore. Debt when YSRCP left power: Rs. 7,21,917 crore. Debt added by Jagan (2019–24): Rs. 3,31,670 crore (CAGR only 13.09%). These figures are clearly visible in CAG reports, state government accounts, and budget documents. But Chandrababu is still repeating the lie that YSRCP left Rs. 9.74 lakh crore debt.
Chandrababu added Rs. 3,17,448 Cr debt in 20 months
In 20 months, Chandrababu has taken Rs. 3,17,448 crore in debt, almost equal to what YS Jagan took in five years. Even in the current year (2025–26), in the first 10 months alone, borrowings are Rs. 90,768 crore. But in the budget documents, they have shown revised estimates of only Rs. 80,567 crore for the full year. They have deliberately reduced the figure by Rs. 10,000 crore to hide the truth. This proves the government is not showing borrowings transparently , they are adjusting figures at will.
Polavaram, Rs. 399.77 Cr wasted in 2017–18
The CAG has clearly stated that due to construction errors in Polavaram in 2017–18, the diaphragm wall was damaged and Rs. 399.77 crore of public money was wasted. The CAG has held the government responsible for not following the schedule and giving works on nomination basis. Even now, the Chandrababu government is repeating the same mistakes. Works on the main (Earth-cum-Rockfill) dam are being done against technical norms. The Central Water Commission (CWC) has raised serious objections on the works in Gap-2 of the main dam. Instead of completing the upper and lower coffer dams first and diverting the Godavari flow, they constructed the diaphragm wall directly. Because of this, the wall was washed away by floods and the main dam area suffered heavy damage. Now, to repair it and construct a new diaphragm wall, another Rs. 3,000 crore of public money has to be spent. The CAG has warned that if the project is completed without correcting these technical flaws, there is a serious risk of danger in the future, which could cause huge loss of life and property in the downstream areas. CWC experts, along with international consultants like Afri, inspected the site on 19–21 January and raised multiple objections in a meeting. The minutes were sent to the state government on 30 January. Serious technical issues pointed out by CWC: The main dam is being constructed at 15.50 metres instead of the required 8.32 metres above MSL in Gap-2, risking sand scouring and dam failure. Tail water level arbitrarily reduced from 25 m to 16 m and 13.5 m without any strong technical reason. Filter design, slope stability, and wave run-up designs not yet approved by Afri. Huge discrepancies in earthquake resistance report submitted by Afri. Dangerous practice of “post-facto approvals” , completing works first and seeking approval later. CWC has clearly warned that once the dam is built, any defects found later cannot be corrected technically and will cause massive losses.
