Nara Chandrababu Naidu is all set to become the Chief Minister of Andhra Pradesh for the fourth time in three decades. When he assumes office, he will be required to draw upon his vast political and administrative experience. An opportunity to leave a lasting legacy for the state, its people and the party, awaits him.
In his over four-decade long journey in politics, Naidu, 74, acquired an image as a shrewd politician and administrator who is a hard taskmaster, driven to deliver, progressive, adapting to ever-changing technology, and deeply committed to economic growth.
During his first nine-year regime between 1995 and 2004, Naidu fashioned himself as the CEO of undivided Andhra Pradesh, who transformed its economy, attracted investments and built the IT zone in the capital city known as 'Cyberabad". The next decade, he was in the opposition as his political opponent and fellow traveller Y.S. Rajasekhara Reddy held the reins after tapping the anger of the people. By the time Naidu came back in 2014, the state was divided with the formation of Telangana.
Despite being part of the National Democratic Alliance (NDA) in the first Modi government, the Telugu Desam Party (TDP) struggled to secure financial assistance from the Centre to the extent the state government expected. Problems compounded as Naidu could not complete his dream project of creating a new state capital in Amravati. The government failed to move ahead with its vision of building a megapolis envisaged on the lines of Singapore, and the party eventually walked out of the alliance.
Interestingly, a few months before he snapped ties with the Bharatiya Janata Party (BJP) in 2018, Naidu found himself in splendid isolation. The Modi government cold-shouldered his demand for the 'Special Category' status for the residual state promised by the previous United Progressive Alliance (UPA) government when the Andhra Pradesh Reorganisation Bill was passed.
Today, political fate has come full circle. The BJP under Narendra Modi cannot form the next government without the crucial support of the TDP, the second-largest party with 16 MPs in the alliance fold. While there is no official word on whether Naidu has brought a wishlist, it's expected that the state government will require more generous financial assistance to tide over the current state of affairs.
Politically Comfortable
The TDP government is in its comfort zone on the political front. The opposition has been reduced to just 11 in the 175-member state assembly. The TDP won 135 seats, with allies Jana Sena bagging 21 and the rest won by the BJP. However, the Chief Minister would have to strike a balance in terms of the caste composition of his new cabinet and in meeting the demands of his two coalition partners. A politically sensitive issue is the promise of reservation for Muslims, with questions already being raised about how the BJP would deal with it.
Outside, the government will have to contend with the Congress. The party did not win any seat in the assembly, but its state unit chief, Y.S. Sharmila, will work to claw back space for the party. The other task is to ensure that the TDP is strengthened and the party cadres remain engaged and in tune with the government's policies.
It's The Economy
The real challenge facing the new government is the economy. Naidu believes it is in a bad shape. The estimate is that the welfare schemes of the previous government have dented the state finances and slowed down investments and new industries, affecting the economy.
Naidu also needs funds to fulfil the Super Six welfare schemes, including cash doles to adult women and free travel in state transport buses, unemployment allowance to youth, support to school-going students, pension for the elderly, etc. It is estimated to cost nearly Rs. 1 lakh crore. Other priorities include re-starting the stalled projects in Amaravati as well as the Polavaram irrigation dam project as soon as possible. These commitments will require generous support from the Centre, which has been flagging pending dues to the tune of Rs.1 lakh crore over the years.
Reserve Bank Of India (RBI) data shows that the total outstanding liabilities of the state government rose from Rs 2,64,388 crore in 2019 to Rs 4,85,490 crore by the end of the financial year in 2024. In terms of percentage of Gross State Domestic Product, it stood at 33.5%. This becomes a major challenge for the state government in raising funds. On the other hand, there is an insignificant increase in devolution and transfer of financial resources from the Centre. It went up by just about 3% from Rs 91,094 crore in 2022-23 to Rs 94,747 crore in 2023-24.
Clearly, the Naidu government will have to hit the road running in order to bring about change and put the state back on the path of development - something he is known for and expected to deliver.
(K.V. Prasad is a senior Delhi-based journalist)
Disclaimer: These are the personal opinions of the author
