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The recent claim that Andhra Pradesh achieved a No. 2 national ranking with an 8.21% real GSDP growth in 2024-25 paints an optimistic picture, but a deeper dive into the state’s fiscal performance raises serious doubts about its validity. First off, the state’s own tax revenue grew by only 2.16% over the first 11 months of 2024-25 (April to February), a stark contrast to the national average of 10.87% and other states like Tamil Nadu (13.01%), Maharashtra (15.72%), and Chhattisgarh (14.61%). Tax revenue typically reflects economic health, so this sluggish growth doesn’t support the idea of a booming economy. On top of that, non-tax revenue plummeted by 33.35%, and capital expenditure, a key driver of growth, dropped by 42.78% compared to the previous year. These figures suggest financial strain, not prosperity. The state seems to be relying heavily on a 14.23% increase in central tax shares and a 17.29% spike in debt to cover basic expenses, which isn’t a sign of self-sustained progress. Looking back, the period from 2019 to 2024 tells a different story. Despite challenges like the Covid-19 pandemic, the state achieved a GSDP growth of 10.23%, outpacing India’s 9.77%. Sectors performed strongly—agriculture at 10.16%, industries at 11.14%, and services at 10.43%—while total liabilities grew at a manageable 13.57% annually, slower than the 22.63% from 2014 to 2019. This track record makes the current claim of a sudden turnaround less convincing, especially when the fiscal data points to trouble. Another concern is that the 8.21% GSDP growth is merely an advance estimate from the state, not verified by an independent body like the Ministry of Statistics and Programme Implementation. Without this validation, the number feels more like a guess than a fact. When you compare Andhra Pradesh to others, the disconnect is clear. Tamil Nadu’s 9.69% GSDP growth aligns with its 13.01% tax revenue increase, and even smaller states like Chhattisgarh show consistency with 14.61% tax growth and 7.51% GSDP. Andhra Pradesh’s numbers, however, don’t match up, making the No. 2 claim questionable. If these figures are inflated, as the fiscal evidence suggests, it could hurt the state’s credibility. The focus should be on transparency—getting an independent audit, boosting revenue streams, and investing in projects to drive real growth. Only then can Andhra Pradesh live up to the promise of being a top economic performer.

In my first tenure as CM of AP in the 1990s, I remember Hyderabad started out as second to Bangalore. Today Hyderabad is the No. 1 city in India in all parameters. Today is a fresh challenge and an opportunity, and we will live up to it. No. 2 means we work harder. #APWeWorkHarder #APBackOnTrack