Deficit is a myth, says A.P. CM Naidu
Andhra Pradesh Chief Minister N. Chandrababu Naidu dismissed the importance of fiscal deficit metrics, labeling them as 'myths' and arbitrary accounting figures. He argued that governments should prioritize resource mobilization and sustainable growth over technical economic indicators.
Why it matters
The statement challenges conventional economic orthodoxy and signals a shift in how the state government intends to frame its financial management.
Andhra Pradesh Chief Minister N. Chandrababu Naidu has described the concept of deficit as a “myth”, arguing that conventional economic indicators should not be regarded as the sole measure of an economy’s health.
He addressed the media while releasing a White Paper on the State’s finances at the Secretariat on Tuesday.
Asked why the primary deficit was increasing despite the government’s success in saving ₹1,100 crore per annum through the renegotiation of interest rates on loans borrowed by the State, Mr. Naidu responded that there was a time when everyone spoke about fiscal discipline and fiscal deficit. “Today, nobody talks about the fiscal deficit. All these are merely figures shown for accounting purposes. They are arbitrary numbers. Earlier, we used to explain these things in technical language that ordinary people could not understand,” he said.
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