AP Fiscal Health: Jagan Reddy Cites CAG Distress Under NDA
Andhra Pradesh’s fiscal health faces scrutiny as YSRCP chief Jagan Mohan Reddy spotlights a significant decline in state GST revenue. Reddy, citing CAG data, reveals a 24.20% contraction in April 2025 GST receipts compared to the previous year, sparking concerns over Andhra Pradesh’s economic performance. He accuses the ruling TDP-lead government of attempting to conceal the true fiscal state, pointing to misleading press releases and a drop in tax and non-tax revenues. This paints a ”distress” picture, according to Reddy, who suggests economic sluggishness.the government hasn’t yet responded, leaving the fiscal performance of the state in question. For in-depth coverage of this and other key issues, visit News Directory 3. discover what’s next for Andhra Pradesh’s finances as the situation unfolds.
andhra Pradesh GST Revenue Declines, Sparking Fiscal Concerns
Updated June 7, 2025
Andhra pradesh’s fiscal health is under scrutiny as YSRCP chief YS Jagan Mohan reddy highlighted what he calls a concerning decline in state GST revenue. Citing data from the Comptroller and Auditor General (CAG), Reddy claims the figures for April 2025 paint a “distress” picture of the state’s finances.
Reddy stated on ‘X’ that Andhra Pradesh’s state GST revenues experienced a 24.20% contraction in April 2025 compared to April 2024. This decline in GST revenue raises questions about the state’s economic performance and fiscal management.
The former chief minister accused the ruling TDP-led NDA government of attempting to mask the severity of the situation. He noted that while the government announced a “highest” net GST collection of 33.54 billion rupees for April 2025, the CAG figures reveal a different reality. Reddy argues that the government’s subsequent press releases are a “cover up” after the CAG data exposed the true state of GST revenue.
According to Reddy, the government’s claim that 7.96 billion rupees was deducted as an adjustment of advance apportionment from IGST (integrated GST) is a regular accounting process. He maintains that net GST revenues are calculated after all adjustments, a practice consistent with previous years.
Reddy further stated that the CAG figures indicate a broader “trend of economic sluggishness,” with tax revenues dropping by 12.21% and non-tax revenues falling by 22% compared to April 2024. He emphasized that the state’s own revenues have fallen by 12.76%, presenting a “vrey gloomy picture” of Andhra Pradesh’s financial situation.
The current state government has not yet responded to these allegations regarding Andhra Pradesh’s GST revenue and overall fiscal performance.
What’s next
The coming weeks will likely see further debate and scrutiny of Andhra Pradesh’s financial data as the YSRCP and TDP-led government present competing narratives. The state’s fiscal performance and GST revenue will remain a key point of contention.