Amaravati, June 25 (IANS) Former Andhra Pradesh Chief Minister and YSR Congress Party President, Y.S. Jagan Mohan Reddy, on Thursday slammed the coalition government led by Chief Minister Chandrababu Naidu, over the decline in the bank credit growth for Self-Help Groups (SHGs) over the last two years.

He stated that the credit to SHGs, which was Rs.49,626 crore in 2023-24 under the YSRCP’s rule, has declined to Rs. 41,623 crore in 2024-25 and further to Rs. 41,105 crore in 2025-26 under the TDP’s rule.

He called it consequences of another broken promise to women by the TDP-led NDA government.

He recalled that the coalition, in its election manifesto, had promised that the loan limit up to which SHG loans interest subvention scheme is applicable would be increased from Rs. 3 lakh to Rs. 10 lakh.

Jagan Mohan Reddy took to ‘X’ to launch an attack on the government over decline in credit growth to SHGs.

“Credit growth to Self Help Groups is vital and is regarded as the lifeblood of rural economy. Credit growth indicates productive investments strengthening the SHGs’ income generating ability and contributing to their sustainability. Declining credit growth indicates lower investment, thereby lower incomes and resultantly lower consumption, clearly indicating the distress,” reads the post.

“The negative year-on-year State Government tax revenues growth of 3.22 per cent during FY 2025-26 also evidences this fall in consumption and economic distress. Interest subvention to SHG loans is vital for promoting SHG credit growth. During the period of the YSRCP Government between 2019-24 the direct support given by the Government to the SHG sector through interest subvention alone is Rs. 4,969 crore. Further YSRCP Government through programmes such as Aasara and Cheyutha provided immense support to SHG women enabling them to stand on their feet,” he said.

He recalled that the TDP-JSP made a commitment in their manifesto that the loan limit up to which SHG loans interest subvention scheme is applicable would be increased from Rs. 3 lakh to Rs. 10 lakh.

“As usual after assuming power, the TDP alliance hoodwinked the people by ignoring the commitment made. Let alone interest subvention on the increased loan limit, even the existing interest subvention programme has been rendered ineffective with no support whatsoever.

“Amount under interest subvention released during 2024-25 is ‘zero’, budgeted for FY 2025-26 is Rs. 100 crore and released is ‘zero’, budgeted for FY 2026-27 is again Rs. 100 crore and likely release is zero. Even if we assume Rs. 6,00,000 debt with respect to every SHG group, the interest subvention amount in tune with the commitment of the TDP can be estimated to be around Rs. 3,000 crore. Therefore, during the first two years of the TDP alliance Government, the amount that the beneficiaries were deprived of is Rs. 6,000 crore.”

Claiming that owing to the steps taken by YSRCP government, the credit growth to SHGs demonstrated a healthy growth during 2019-24, he said the lack of support by the Chandrababu Naidu Government resulted in decline in credit growth from Rs. 49,696 crore in FY 2023-24 to Rs. 41,623 crore in FY 2024-25 and further to Rs. 41,105 crore in FY 2025-26.

–IANS

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