Trust me, I will deliver despite severe financial challenges: CM N Chandrababu Naidu

Making a PowerPoint presentation at the State Secretariat on Monday, Naidu said the FHI highlighted significant challenges in managing the State’s finances.
Trust me, I will deliver despite severe financial challenges: CM N Chandrababu Naidu
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VIJAYAWADA: Accusing the previous YSRCP dispensation of causing destruction beyond imagination, Chief Minister N Chandrababu Naidu said his prediction when in Opposition that the State was turning out to be another Sri Lanka came true with the AP Fiscal Health Index (FHI) 2025 released by NITI Aayog revealing that the Debt Sustainability of the State reached zero in 2022-23.

Naidu said though his government is sincere to fulfil the poll promises like Thalliki Vandanam, Annadata Sukhibhava and others, it is taking time because of the adverse financial conditions of the State.

Making a PowerPoint presentation at the State Secretariat on Monday, Naidu said the FHI highlighted significant challenges in managing the State’s finances. In FY 2022-23, capital expenditure reached a record low, amounting to only 3.5% of the total expenditure. Furthermore, committed expenditure, including salaries, pensions, and interest payments, consumed approximately 51% of revenue expenditure, severely curtailing the scope for development investments.

Additionally, the State’s revenue growth slowed drastically, slumping from 17.1% in 2018-19 to just 9.8% in 2022-23, while public debt escalated at an average annual rate of 16.5%. The State’s Debt Sustainability collapsed to zero in FY 2022-23, the Chief Minister explained.

Naidu promises to put State back on track, ensure brighter future to AP

Naidu emphasised the importance of fiscal discipline to meet the challenges posed by the State’s debt obligations. “There are debts amounting to Rs 9.75 lakh crore, and contractors are now taking legal recourse to get their pending dues. If the State loses its credibility, it will face even greater difficulties in securing future loans,” he warned.

Slamming the previous government for its gross financial mismanagement, he said, “The NITI Aayog report is a testament to the financial destruction caused by the YSRCP. Over the past five years, poor governance has resulted in deteriorating infrastructure, with roads turning into potholes, and excessive borrowing pushing the State into a financial crisis.”

Despite facing these challenges, Naidu exuded confidence in the government’s ability to restore fiscal stability. “We will put the State back on track. People have trusted us, and we will honour that trust,” he vowed.

The Chief Minister highlighted the ongoing investments that promise to generate significant employment opportunities. “Companies like Green Energy, ArcelorMittal, NHPC, BPCL, along with Reliance, LG and others are investing in the State. These investments will create 4.1 lakh jobs for our youth,” he said.

Furthermore, he outlined the government’s focus on key sectors such as irrigation, having spent `68,000 crore on water projects that have already improved groundwater levels. “By June, we will ensure that water reaches the fields. Every rupee spent on creating wealth must yield tangible results,” he stressed.

Mentioning the global success stories, he underlined the importance of policy-driven development. “China implemented reforms in 1978, while Russia began political reforms in the 1980s. Today, China is a global superpower, while Russia has faltered. The key difference lies in how public policies are designed and executed,” he explained.

Acknowledging the consequences of past fiscal mismanagement, Naidu emphasised, “We cannot ignore the fact that five years have been lost. Had we made progress during that time, we would be in a much better position today. This is an ongoing process that requires consistent effort.”

“People have placed their trust in me, and I will deliver. We will correct the past mistakes, establish governance based on 10 key principles, and lead the State toward a brighter future,” he promised.

“We always focus on health. When health is good, we can achieve anything. Similarly, without strong financial health, we cannot progress. We must focus on development to create wealth, and avoid further borrowing that could exacerbate our challenges,” he added.

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