Andhra Pradesh is struggling to keep pace with its neighbouring states in terms of economic growth, own revenue generation and Gross State Domestic Product (GSDP). The state has fallen to the bottom of the list among southern states, with a meagre 53% growth in its own revenue over the past five years. Critics blame YS Jaganmohan Reddy’s government tenure for the economic downturn, citing poor financial decisions and a lack of progressive policies.

Between 2019-20 and 2023-24, Andhra Pradesh’s own revenue grew by only 53%, from ₹60,916 crore to ₹93,554 crore. In contrast, Telangana recorded a 94% growth, while Tamil Nadu and Karnataka saw a 61% increase. Maharashtra and Kerala also outperformed AP with 58% and 55% growth, respectively. This stark difference highlights the state’s inability to boost its revenue streams effectively.

Andhra Pradesh’s share of its revenue in GSDP has seen minimal improvement, rising from 6.3% in 2019-20 to just 6.5% in 2023-24. Meanwhile, Telangana leads with a 9.5% share, followed by Kerala at 8.5%. The state’s poor performance in GSDP growth further underscores its economic challenges.

A detailed analysis of the economic performance of southern states—Andhra Pradesh, Karnataka, Kerala, Maharashtra, Tamil Nadu and Telangana—reveals that AP is consistently at the bottom. While neighbouring states have implemented progressive policies to boost their economies, Andhra Pradesh has struggled with declining tax revenues and other revenue shortfalls.

The state’s finance department recently presented these alarming statistics to Chief Minister Nara Chandrababu Naidu as part of the budget planning for 2025-26. The report highlights how regressive decisions taken by YS Jagan’s government have destabilized the economy. Key issues include a significant drop in tax revenues and deficits in other revenue streams, which have further exacerbated the financial crisis.