Andhra Pradesh Chief Minister N Chandrababu Naidu met with Prime Minister Narendra Modi on Saturday, August 17 to request more financial support for the state, which is currently facing significant debt. The meeting, which lasted for an hour, covered various issues, including the development of Amaravati, the state's capital city, and the Polavaram Irrigation Project.
During the discussion, Naidu spoke of the precarious financial situation of Andhra Pradesh and requested the early release of funds allocated to the state in the Union Budget. He also appealed to the Prime Minister to reschedule loans taken by the previous state government, which have added to the current financial burden.
With the Union Budget allocating Rs 15,000 crore for the development of Amaravati, Naidu urged Modi to expedite the release of these funds to advance the capital city's development. The Chief Minister also sought support under the Special Assistance for Capital Investment (SACI) for various state projects and requested the early disbursement of funds under the Backward Region Grant to assist the development of eight districts.
Naidu also requested financial support from the Union government for industrial incentives to help grow the state's industrial ecosystem.
Official data highlights Andhra Pradesh's worsening fiscal health, with public debt rising from 31.02% of the Gross State Domestic Product (GSDP) in 2019-20 to 33.32% in 2023-24.