The former chief minister noted that the figures released by CAG for the six-month period convey the actual state of affairs.
“The state’s own tax revenues grew only 7.03 per cent year-on-year in the first half, while the combined GST and Sales Tax revenues increased by a mere 2.85 per cent,” Reddy said in a post on ‘X’.
According to the opposition leader, these figures run contrary to the assurances given by the TDP-led alliance that government revenues would see rapid expansion under their governance.
He said the compounded annual growth rate (CAGR) of the state’s own tax revenues over the two-year period from 2023-24 to 2025-26 stands at only 2.75 per cent, reflecting a far weaker fiscal performance than what the government has been projecting.
Reddy alleged that despite these numbers, the government continues to claim that GSDP growth is robust, targeting 17.1 per cent in FY 2025-26, which he described as “misleading in the face of stagnant revenue performance”.He noted that such high GSDP growth should normally translate into a corresponding tax revenue of CAGR upto 15 per cent, but the actual figure of 2.75 per cent exposes the ‘discrepancy’ between projections and outcomes.Further, the opposition leader highlighted that the shrinkage of capital expenditure at a CAGR of 16 per cent over the same two-year period indicates deeper structural challenges.
He also pointed out that in Q1 of FY 2025-26, the state’s own revenues rose only 3.47 per cent, while the aggregate of GST and Sales Tax revenues was lower than the corresponding quarter of the previous year.
Reddy said that despite this, the NDA coalition government claims the GSDP grew by 10.5 per cent in Q1, which he termed “illogical considering declining consumption-linked revenues”.
He observed that between 2019 and 2024, the state’s own tax revenues grew at a CAGR of 9.87 per cent, broadly in line with the GSDP CAGR of 10.23 per cent, making the current slowdown more evident.
The former CM further alleged that the only aspect showing rapid increase under the present regime is debt, with the government contracting borrowings of over Rs 2 lakh crore so far, amounting to 62 per cent of the previous YSRCP government’s five-year total.
Meanwhile, there was no immediate reaction from the ruling TDP.