Home Fact Check Govt’s White Paper on Finances contradict Ambati’s claims against TDP

Govt’s White Paper on Finances contradict Ambati’s claims against TDP

by Supraja
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Amidst bitter accusations and counter accusations, which reached a new din recently after YS Jagan Mohan Reddy completed one year in the Office of the Chief Minister of Andhra Pradesh after his landslide victory last year, senior YSRCP leader Ambati Rambabu claimed the following in a presser on 4th June, 2020.

Now it is not surprising, especially in a country like India, to see ruling governments blaming previous governments as the scourge of all evil. This is evident with the BJP/NDA government blaming the INC/UPA government all through their first tenure. In fact, this is being done even now, in their second tenure. Be that as it may, what real evidence, ignoring the stupendous mandate the YSRCP got, exists to conclusively say that financial indiscipline and lavish spending were rampant during the previous TDP’s tenure.

One surest and popular indicator of economic growth is the Gross Domestic Product (GDP). Dividing GDP by the total population gives us Per Capital Income (PCI), another important indicator of economic development. The indices argue that greater the income, higher the standard of living of people, and lower the incidence of poverty and inequality. Let us see how the TDP government fared according to these two growth indicators.

According to a White Paper on State Finances, released by the YSRCP government on 10th July, 2020 the Gross State Domestic Product (GSDP) recorded a Compound Annual Growth Rate (CAGR) of 10.36% from 2014-19. In fact, as mentioned in the table below it was the highest till date, notwithstanding the revised measurement formula of GDP with 2011-12 as the base year.

Coming to PCI, according to the White Paper the trend in the period 2014-19 was the second highest in the past 20 years. In fact, as mentioned in the table below, the CAGR of PCI was 2.03 per cent more that the preceding period 2009-14.

Or in other words, the actual size of the cake (GSDP) has increased and thereby the size of each piece that was distributed to the population (PCI) also increased. And this is reflected in a White Paper released by YSRCP leader Ambati Rambabu’s own government. There can be various opinions about the diversity in equity of economic development but to outrightly claim otherwise is misleading. Therefore, the claim is false and misleading.

 

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