Though TDP emerges as a key partner of BJP-led NDA as BJP failed to get absolute majority on its own in the Lok Sabha, Chief Minister N Chandrababu Naidu is said to be intending to make use of his clout at the Center to rescue the state from the financial mess created by YS Jaganmohan Reddy regime, more than seeking political positions.

That’s why he is not seen insisting on cabinet berths to TDP MPs or asking for Speaker’s post as per the tradition established by previous NDA Prime Minister Vajapayee.

Though he is arguing that as per the promise given in the bifurcation act, the state should be accorded a Special Category Status, Naidu is aware that it may not be possible since it will trigger similar demand from other states like Bihar and Odisha.

As an alternative, he is likely to press on the finance ministry to consider a special financial packages including more Central funds for some of the big projects such as the Amaravati capital city project.

The total debts of the state under YS Jagan’s regime jumped 67 per cent to Rs 4,42,442 crore as on March-end 2023 over four years since he took charge. The state’s gross fiscal deficit estimated at Rs 55,817.50 crore as on March 31, 2024, has seen a 57 per cent increase from Rs 35,441 crore in 2018-19. 

State’s debt burden could be much higher if off-Budget borrowings and debt of the public sector is also included.

Meanwhile, the TDP promised welfare schemes – dubbed Babu Super Six – in the run-up to the polls which include free bus travel for women, three free LPG cylinders per year for all households under the Deepam Scheme, an annual dole of Rs 18,000 for every woman above the age of 18, an yearly allowance of Rs 15,000 per year for children under the “Talliki Vandanam (Salute to the Mother)” scheme, Rs 3,000 per year for unemployed youth and free clean drinking water supply to households. 

The exact estimates of how much each of the schemes under “Super Six” is going to burden the Naidu government is yet to be ascertained. However, cumulatively, Naidu’s poll promises could add up to as much as Rs 60,000 crore a year.

But to meet this financial burden will be a real challenge to Chandrababu Naidu’s government as the state was facing a fiscal disaster as bad financial practices like raising the debt on state-run enterprises were adopted by the YSRCP government.=

Apart from the welfare scheme-related expenditure, the development of Amaravati, which Naidu announced almost immediately after the election result, is likely to also financially burden the state. So, there is no way out for him except to seek liberal assistance from the Center.