Former Chief Minister and YSRCP president YS Jagan Mohan Reddy launched a blistering attack on the Chandrababu Naidu-led coalition government, “financial vandalism” and “massive looting”. Citing the latest Comptroller and Auditor General (CAG) report, YS Jagan stated that reckless borrowing, pension cuts, unfulfilled welfare promises, agricultural distress, and serious irregularities at Tirumala Tirupati Devasthanams (TTD) have pushed the state into an alarming crisis within just two years. YS Jagan presented specific charges, claiming the government was hiding the truth from the Assembly and misleading the public while indulging in “conspiracy after conspiracy”.
CAG report flags Fiscal deterioration
YS Jagan stated that the CAG report lays bare the severe financial deterioration in Andhra Pradesh under Chandrababu Naidu’s leadership. According to him, both the revenue deficit and fiscal deficit have surged sharply since the coalition assumed power. He pointed out that in the very first year of the government, state revenues declined, while the revenue deficit increased by nearly 56% between 2023–24 and 2024–25. The fiscal deficit, he said, rose by about 30 %, reaching 5.089% of GSDP in 2024–25, compared with 4.11% during the five years of the YSRCP government.
He warned that the situation has worsened further in 2025–26, with the fiscal deficit already reaching 39.74% of the annual target within the first ten months, indicating severe fiscal stress. According to him, the state has become dependent on borrowings even to meet routine expenditure, reflecting what he described as “destructive economic management.”
Borrowings soar, limits breached
The former Chief Minister accused the government of repeatedly violating the Net Borrowing Ceiling set by the Centre. During 2014–19, he said, the state exceeded the borrowing limit by Rs.29,099 crore, while the YSRCP government from 2019–24 borrowed Rs. 12,708 crore less than the permitted limit. However, after Chandrababu Naidu returned to power, the trend reversed. In 2024–25 alone, he said, the government borrowed Rs. 17,953 crore beyond the ceiling. YS Jagan alleged that the coalition government has already borrowed Rs. 3.2 lakh crore in just two years, nearly 96 % of the total borrowings undertaken during the five-year YSRCP term, which stood at Rs. 3.31 lakh crore. He argued that the figures clearly reveal the contrast between responsible fiscal management during his tenure and the present administration’s reckless borrowing.
Hidden liabilities and off-budget borrowings
The YSRCP chief alleged that the government is deliberately concealing the true extent of borrowing. He said that while the government claimed budget borrowings of Rs. 60,485 crore in 2024–25, the CAG report revealed the actual borrowing to be Rs. 81,071 crore, indicating that around Rs. 20,000 crore had been concealed.
He further said the government avoided questions in the Assembly regarding off-budget borrowings. Several government institutions, he claimed, had taken large loans backed by state guarantees, which effectively amount to off-budget borrowing. YS Jagan said the YSRCP would lodge complaints against officials who misled the legislature by denying these borrowings.
Falling revenues and allegations of corruption
YS Jagan alleged that despite heavy borrowing, state revenues have been declining due to widespread corruption. According to him, resources across sectors—sand, soil, silica, quartz, laterite, granite, liquor, government lands and high-priced power purchase agreements, are being systematically exploited for private gain.
He accused the ruling establishment of selling valuable government land in Visakhapatnam at throwaway prices and alleged that 54 acres of land worth about Rs. 5,000 crore is being encroached upon by relatives of the Chief Minister. Heavy machinery is reportedly being used to level the land while government signboards are being removed, he claimed, accusing authorities and institutions of turning a blind eye.
YS Jagan also highlighted the worsening treasury position, stating that in 2024–25 the state treasury maintained the required minimum cash balance for only eight days out of 365, forcing the government to rely heavily on advances from the Reserve Bank of India.
Assembly session ‘failed the people’
The former Chief Minister criticised the recently concluded 16-day Assembly budget session, saying it produced little besides propaganda and self-praise. He said the Opposition raised numerous questions about financial management and welfare schemes, but the government failed to provide answers.
He accused the coalition leadership of engaging in political theatrics while ignoring substantive issues affecting farmers, employees, students and women.
Unfulfilled welfare promises
YS Jagan said many of the government’s flagship promises remain unimplemented. He cited the failure to launch the Aada Biddha Nidhi scheme, which promised Rs. 1,500 per month to women aged 18 to 60, and the unemployment allowance, which he said was never discussed during the Assembly session.
Similarly, he alleged that the promise of Rs. 4,000 monthly pensions for SC, ST, BC and minority citizens above 50 years remains unfulfilled. According to him, the government has cut 5,64,709 pensions, is reducing beneficiaries by about 25,000 each month, and has not sanctioned any new pensions while lakhs of applications remain pending.
Cuts in welfare schemes
The YSRCP leader stated that several welfare programmes have been diluted or discontinued. He claimed that the Thalliki Vandanam (Amma Vodi) scheme failed to deliver promised amounts, with around 20 lakh children reportedly excluded in the second year. Payments varied widely, he said, with beneficiaries receiving different amounts ranging from Rs. 8,000 to Rs. 13,000.
He also accused the government of restricting free bus travel to only five out of sixteen APSRTC service categories, and failing to implement the promise of three free LPG cylinders annually under the Deepam scheme, leaving Rs. 6,143 crore in pending liabilities.
Agriculture sector in distress
YS Jagan said farmers are facing severe distress due to lack of minimum support price and delayed compensation. He alleged that Rs. 3,500 crore was lost due to unpaid crop insurance premiums in the 2023-24 and 2024-25 seasons, while farmers affected by cyclones have not received input subsidies.
He pointed to falling crop prices—chilli dropping from Rs. 26,000 to Rs. 18,000 per quintal, Bengal gram selling below MSP of Rs. 5,875, and maize farmers receiving only Rs. 1,400–Rs. 1,500 against an MSP of Rs. 2,400. Banana prices have also collapsed to Rs. 5,000 per tonne, compared with Rs. 30,000 during the YSRCP government, he said.
Education, Health and Employee Concerns
The YSRCP chief also highlighted pending dues in education and welfare programmes. He said arrears under Vidya Deevena and Vasathi Deevena for the period 2024–26 total Rs. 6,428 crore, while Rs. 10,328 crore is required in the current year but only Rs. 2,766 crore has been allocated.
He also raised concerns about Rs. 36,000 crore in unpaid employee dues, lack of implementation of PRC and interim relief, and neglect of ASHA and Anganwadi workers. YS Jagan accused the government of abandoning several women empowerment schemes introduced during the YSRCP government, including Aasara, Cheyutha, EBC Nestham, Kapu Nestham, Jagananna Thodu, Jagananna Chedodu, Nethanna Nestham and Vahanamitra.
Housing, Education and Health Infrastructure
Highlighting his government’s achievements, YS Jagan said the YSRCP administration distributed 31 lakh house site pattas and sanctioned 21 lakh houses, with over 10 lakh houses completed. He alleged that the current government has neither sanctioned new houses nor released funds for houses already under construction.
He also criticised the government for not discussing the future of 17 new medical colleges initiated by the previous administration and for accumulating Rs. 3,150 crore in unpaid Aarogyasri dues, prompting network hospitals to threaten withdrawal from the scheme.
Law and Order, Women’s Safety and Temple Administration
YS Jagan questioned the government’s commitment to women’s safety, asking what action had been taken against legislators accused of harassment or assault in various constituencies. He also criticised the appointment of the TTD chairman despite allegations raised against him, questioning the moral authority of the government to speak about temple sanctity.
He accused the administration of negligence in temple management, citing incidents at Tirupati, Simhachalam, Palasa and Kadiri, where devotees were injured or killed during religious events.
Tirumala Ghee Tenders and Temple Theft Controversies
The YSRCP leader alleged irregularities in the procurement of ghee for Tirumala laddus, claiming that tender documents point to a potential Rs. 200-crore scam. According to him, ghee prices gradually increased from Rs. 351 to Rs. 716 per kg over a year.
He also alleged a cover-up in a Rs. 1-crore gold theft from the Tirumala Parakamani (hundi counting centre), claiming that the accused received bail and the case was diluted. By contrast, he said the YSRCP government had recovered Rs. 15 crore worth of assets after a Rs. 75,000 dollar-note theft during its tenure.
YS Jagan alleged that the government revived an old 2023 case in September 2025 to divert attention from the January 2025 gold theft and other irregularities, accusing Chandrababu Naidu of orchestrating multiple conspiracies to shift blame onto the opposition.
‘Diversion politics cannot hide governance failures’
Concluding his remarks, YS Jagan said the coalition government has failed to implement its promises, cut welfare schemes, and pushed the state into deeper debt. He accused the leadership of indulging in diversionary politics to hide governance failures.
“People can clearly see the difference between propaganda and reality,” he said, adding that the government must answer where the massive borrowings have gone and why welfare promises remain unfulfilled.
