Jaganmohan Reddy blamed the TDP government for Andhra Pradesh's financial worries.
A dramatic and emotional outburst by Andhra Pradesh chief minister Jaganmohan Reddy in the state assembly risked overshadowing the presentation of the state budget by the finance minister on Friday, the second day of the budget session.
Upset at his speech being interrupted by Chandrababu Naidu's Telugu Desam Party (TDP) legislators, Mr Reddy warned that the far larger number of his lawmakers could easily drown out the opposition.
"Speaker sir, they are 20, we are 150... If my people get up, they can't even sit in the assembly," he boomed. "You people don't even know how to behave. How did you get elected?" he said, shouting to them to stay quiet.
To his predecessor and TDP leader Chandrababu Naidu, he said, "Just because you are glaring at me, I won't be afraid of you. We are not afraid."
In an unflattering reference, he told a Telugu Desam legislator: "You sit down, Acham (referring to Acham Naidu)... It is not enough to have a big personality, brain must grow too."
Fiery exchanges and salty comments had flared on Thursday - not unexpected when fierce political rivals Jaganmohan Reddy and Chandrababu Naidu came face-to-face during the first assembly session of the YSR Congress government in Andhra Pradesh after a bitterly fought state election.
On Thursday, Mr Reddy had challenged Chandrababu Naidu to resign, saying that he would prove that the previous Telugu Desam Party government had not given any interest-free loans to farmers.
The Telugu Desam Party said they would move a privilege motion against the chief minister for what they called a lie.
Chandrababu Naidu presented documents to show he had given out loans worth at least a few hundred crore rupees.
Jaganmohan Reddy said Chandrababu Naidu's government had been corrupt and responsible for the state's worrisome finances. The new chief minister has declared that he would expose every corrupt deal and initiate legal action against those responsible in the previous regime.