Date: January 27, 2025
NITI Aayog Report Reveals Economic Decline in Andhra Pradesh
NITI Aayog Highlights Andhra Pradesh’s Economic Decline Under Jagan’s Leadership
Once a fast-growing economy, Andhra Pradesh’s financial health has drastically deteriorated in recent years. During 2014-2019, under the leadership of Chandrababu Naidu, the state saw significant economic growth. However, the last five years under YS Jagan Mohan Reddy’s regime have been marked by anti-industry policies, rising debts, and poor fiscal management. NITI Aayog report highlights Andhra Pradesh’s financial struggles under Jagan
NITI Aayog Fiscal Health Report (2022-2023)
The NITI Aayog recently released its Fiscal Health Index (FHI) for the period 2022-2023, shedding light on the economic struggles faced by Andhra Pradesh. The report, which evaluates 18 major states based on their contribution to GDP, public expenditure, revenue, and fiscal stability, ranks Andhra Pradesh as one of the worst-performing states, with an FHI score of 20.9.
Key highlights of the report:
- Overall Rank: 17th out of 18 states.
- Debt Sustainability: Andhra Pradesh scored zero points, reflecting a critical financial situation.
- Debt Index: Ranked very low, indicating weak debt management.
- Revenue Mobilization & Fiscal Prudence: Scored 22.1 and 13.3, placing the state among the poorest performers.
Comparative Performance
While Odisha and Chhattisgarh topped the rankings, Punjab secured the last position. Andhra Pradesh’s performance in quality of expenditure and debt profile lagged far behind other states.
The report also highlights concerns about debt sustainability, with the state’s financial position deteriorating to alarming levels.
Chandrababu Naidu’s Warning Proven True
When he assumed office, Chandrababu Naidu released a white paper on the state’s finances, accusing Jagan Mohan Reddy of pushing the state into a debt trap. The findings of the NITI Aayog report now validate those claims, exposing how Andhra Pradesh’s economy has been significantly damaged due to poor fiscal policies and lack of foresight.
Impact of Policies on Andhra Pradesh’s Economy
The decline under Jagan’s leadership highlights the dangers of:
- Anti-industry policies that deter investments.
- Rising debt levels, which have crippled the state’s financial stability.
- Lack of fiscal prudence, leading to mismanagement of resources.
The Need for Strong Leadership
The findings of the NITI Aayog report underscore the urgent need for strategic planning and strong leadership to restore Andhra Pradesh’s financial health. As the state faces these challenges, it is evident that policy reforms and responsible governance are critical to reviving its economy.