The road ahead for Chief  Minister of Andhra Pradesh Chandrababu Naidu and his team is full of hurdles if the white paper on State finances brought out by his government on Friday is anything to go with. The State is staring at a severe financial stress with a gap of ₹1,46,909 crore for expenditure in 2024-25​. This is on account of gap in essential expenditure dues to vendors, schemes and dues to employees.

According to the paper, debt and liabilities as on June 12, 2024 stood at ₹9.74 lakh crore and ​liabilities payable due to court orders stood at ₹3,542 crore.​

 “The journey ahead is challenging due to the messed-up situation left by the previous government,” the paper said adding that​ discussion and debateare essential for collective understanding and finding short, medium and long-term solutions for State’s progress. ​“We are confident of taking this responsibility and deliver on our promises with your continued support and participation,” Naidu said.​

Decline in GSDP

The paper points to destruction of State Economy from 2019 to 2024. According to the paper, there was a decline in growth of GSDP. The State lost ₹6.94 lakh crore because of reduced growth rate​.

“Had the growth rate of 13.5 per cent continued, State would have got additional revenue of ₹76,195 crore.​ Even after considering the Covid impact, an additional revenue of ₹52,197 crore should have come to the State,” according to the paper.

Talking about Direct Benefit Transfer schemes, the paper said it were supposed to increase wealth in the hands of people. However, the per capita income growth reduced​ as the DBT expenditure led to increase in more borrowings by the State resulting in increase in per capita debt.

The paper also talks about the negative impact of State bifurcation on the current financial situation of the independent Andhra Pradesh. It said that the residual State of Andhra Pradesh has inherited 46 per cent of tax revenue with 58 per cent of population. As a result, Andhra Pradesh’s per capita income fell far below the per capita income of Telangana. It also points at uneven allocation of public finances.