VIJAYAWADA: YSRCP general secretary (Agriculture & Farmers’ Welfare) MVS Nagireddy has warned that Andhra Pradesh’s rural economy is in deep crisis, with falling farm incomes and declining productivity reflected in shrinking state revenues.
Addressing the media, he said inflated Budget projections conceal the reality of economic regression. He pointed out that revenue receipts for 2025–26 were initially estimated at Rs 2,17,976.53 crore but revised down to Rs 1,96,903.53 crore — a shortfall of over Rs 21,000 crore.
Despite this, the government has now projected an unrealistic 18.91% rise to Rs 2,34,140.14 crore. Similarly, state tax revenues fell by 12.69% to Rs 1,11,865 crore, yet the new Budget claims a 22.75% increase.
Nagireddy highlighted declining Minimum Support Prices, reduced procurement, and marketing failures as key reasons for shrinking rural incomes. He cited marginal paddy yield growth despite higher acreage, losses for cotton farmers due to Cyclone Montha, and a drastic decline in groundnut cultivation.