Chief Minister N Chandrababu Naidu focused on how the state government was working towards a system where citizens can access public services via WhatsApp, eliminating the need to visit offices.
Published Apr 16, 2025 | 6:16 PM ⚊ Updated Apr 16, 2025 | 6:16 PM
Chief Minister N Chandrababu Naidu told the Finance Commission that the previous YSRCP government had left the state's finances in a shambles. (NCBN/X)
Synopsis: In a presentation to the Arvind Panagariya-led Finance Commission, Chief Minister N Chandrababu Naidu detailed the present state of finances and the funds required to achieve his government’s aim of a “Healthy, Wealthy, and Happy Andhra Pradesh” by 2047.
A cash-strapped Andhra Pradesh government has requested the 16th Finance Commission an increase in the vertical devolution share of the divisible pool of central taxes from 41 percent to 50 percent.
It also sought to address the decline in horizontal devolution to southern states from 24.3 percent (10th Finance Commission) to 15.8 percent (15th Finance Commission).
The state government, in a presentation to Commission Chairman Arvind Panagariya and its members on Wednesday, 16 April, at the state secretariat, said that Andhra Pradesh’s share in horizontal devolution was below its share in national GDP and population, causing fiscal disadvantage.
Chief Minister N Chandrababu Naidu, in his presentation to the commission, said that the development of Amaravati requires ₹77,249 crore, and so far, ₹31,000 crore has been secured through the World Bank, HUDCO, and KfW, a German state-owned investment and development bank. The state still needs an additional ₹47,000 crore.
The chief minister put forth the state’s key proposals before the commission, which included:
The chief minister also sought grants for:
Naidu said the state needed a hand-holding as it was on the cusp of reconstruction after its finances had been battered by the previous government.
He listed out the following key concerns:
Naidu, in his presentation, said: “If you help us today, we will play a key role in India’s success tomorrow.”
Calling Panagariya a visionary, Naidu recalled how he had recommended transferring the Polavaram project to the state during his tenure at NITI Aayog.
“We aim to complete Polavaram before the upcoming Godavari Pushkarams, and I invite you to its inauguration,” the chief minister said.
Naidu praised Prime Minister Narendra Modi’s leadership, under which India is evolving into a developed nation. From being mocked for slow growth, India is now the fifth-largest economy and is set to become the third-largest by 2028.
“By 2047, we will be the world’s largest economy,” he stated, stressing India’s rise in global stature. His praise of Modi came as no surprise since the TDP is part of the NDA.
“Despite serving four terms as chief minister, I’ve never faced challenges of this magnitude,” he said, and came down heavily on the previous YSRCP government’s financial irresponsibility, including pledging even tahsildar offices and mortgaging future revenues.
“We are determined to overcome the financial distress caused by the previous government and rebuild the state through good governance, balancing welfare and development.”
The chief minister focused on how the state government was working towards a system where citizens can access public services via WhatsApp, eliminating the need to visit offices. He stated that the aim was to provide up to 1,000 services through WhatsApp shortly.
Panagariya responded, saying that it was impressive for a chief minister to personally deliver a detailed presentation on financial matters and commended the depth of analysis on growth indicators and efforts to seek central assistance.
Naidu said the state was seeking to leverage its strategic position near Hyderabad, Bengaluru, and Chennai to spur growth. Amaravati’s development is part of a larger plan to transform South India into a major growth engine contributing to the Viksit Bharat aim.
Andhra Pradesh, with the longest coastline in India, acts as a gateway to Eastern countries. The state hosts three major industrial corridors—Visakhapatnam-Chennai, Chennai-Bengaluru, and Bengaluru-Hyderabad. It also has six seaports and seven airports.
He said Andhra Pradesh contributes 5.8 percent to the country’s exports. It leads in adopting emerging technologies such as Blue Economy, IT, Knowledge Economy, Quantum Valley, Drones, IoT, and Blockchain. The state is also emerging as a hub for green energy, particularly in green hydrogen, solar, and ammonia.
Naidu also elaborated on the Swarnandhra 2047 vision, which aligns with India’s vision to become a developed nation by 2047. The aim is to build a “Healthy, Wealthy, and Happy” Andhra Pradesh.
The state is implementing a ten-principle plan focusing on fulfilling the basic needs of every family—housing, toilets, piped water, cooking gas, uninterrupted electricity, and high-speed internet. Infrastructure upgrades are underway in villages, including roads, drainage, waste-to-wealth centers, energy-efficient street lighting, and strengthening schools and health centers.
He also brought to the commission’s notice the P4 initiative (Public-Private-People Partnership for Prosperity) to eliminate poverty. It seeks to empower the poorest 20% of the population by involving the wealthiest 10% for their upliftment. The government is also focusing on population growth and equity.
The 2047 economic targets, as explained by Naidu in the presentation, are:
He said that to achieve these targets, ₹40 lakh crore in investments are required by 2029. The state’s current GSDP is ₹18.25 lakh crore, with a target of ₹29.29 lakh crore by 2028–29.
Since assuming office in 2024, the government has:
The government has launched 19 new policies, including:
Under the AP Integrated Clean Energy Policy, the state plans to:
After the presentation, the members of the Finance Commission appreciated the Andhra Pradesh government’s WhatsApp governance initiative, among others.
Panagariya asked the chief minister whether this innovative model had been brought to Prime Minister Modi’s attention. The chief minister replied that it hadn’t yet, but he planned to explain the project during his scheduled meeting with the Prime Minister next month.
Finance Commission member Anne George Mathew recalled her visit to Hyderabad 30 years ago, appreciating the city’s remarkable development since then, which she credited to Naidu’s vision. She expressed confidence that Amaravati would be developed to similar standards under his leadership.
The 16th Finance Commission will be in office for five years from 1 April 2026. The Union government has asked the Commission to make its recommendations available by 31 October 2025.
(Edited by Majnu Babu).
