Why Chandrababu Naidu’s poll promises pose a challenge to Andhra’s fiscal math

WITH THE Telugu Desam Party’s election promises including cash payments to unemployed youth and children, free travel to women and free LPG cylinders, estimated to cost a whopping Rs 60,000 crore, the party’s demand for a special package from the NDA government gains urgency as the new state Finance Minister Payyavula Keshav prepares to present a budget in July.

The total debt of Andhra Pradesh, under YS Jagan Mohan Reddy government, jumped 67 per cent to Rs 4,42,442 crore as on March-end 2023 over four years since he took charge. The state’s gross fiscal deficit estimated at Rs 55,817.50 crore as on March 31, 2024, has seen a 57 per cent increase from Rs 35,441 crore in 2018-19.

An uphill task now awaits TDP chief N Chandrababu Naidu, who took oath as Chief Minister of Andhra Pradesh on Wednesday. Sources in the Central government said while a Special Category Status may not be forthcoming since it will trigger similar demand from other states, the finance ministry may consider special packages including more Central funds for some of the big projects such as the Amaravati capital city project.

The TDP promised welfare schemes – dubbed Babu Super Six – in the run-up to the polls which include free bus travel for women, three free LPG cylinders per year for all households under the Deepam Scheme, an annual dole of Rs 18,000 for every woman above the age of 18, an yearly allowance of Rs 15,000 per year for children under the “Talliki Vandanam (Salute to the Mother)” scheme, Rs 3,000 per year for unemployed youth and free clean drinking water supply to households.

The exact estimates of how much each of the schemes under “Super Six” is going to burden the Naidu government is yet to be ascertained, sources said. But