YSRCP president Y. S. Jagan Mohan Reddy on Thursday accused the TDP-led NDA government of failing to fulfil its election promise on interest subvention for Self Help Group (SHG) loans, claiming that women beneficiaries had been deprived of nearly ₹6,000 crore over the past two years.

In a post on X, Mr. Jagan said credit growth to SHGs was the lifeline of the rural economy as it enables productive investments, enhances income-generating capacity and strengthens the sustainability of women’s groups. He argued that declining credit growth reflected reduced investments, lower incomes and weaker consumption, signalling economic distress in rural areas.

The former Chief Minister pointed to the reported negative year-on-year growth of 3.22% in State government tax revenues during FY 2025-26, claiming it reflected a decline in consumption and economic activity.

Highlighting the YSRCP government’s record between 2019 and 2024, he said his administration had provided ₹4,969 crore towards interest subvention for SHG loans. He added that welfare programmes such as Aasara and Cheyutha had extended substantial support to women, helping them achieve financial independence.

Mr. Jagan recalled that the TDP-JSP alliance had promised in its election manifesto to increase the loan limit eligible for interest subvention from ₹3 lakh to ₹10 lakh. However, he alleged that the government failed not only to expand the scheme but also to effectively continue the existing programme.

He said no funds had been released towards interest subvention during 2024-25. He claimed that though ₹100 crore was budgeted for 2025-26 and 2026-27, no amount had been released so far. Based on an estimated average SHG loan burden of ₹6 lakh per group, he calculated that women beneficiaries had lost nearly ₹3,000 crore annually in interest subsidy benefits, amounting to ₹6,000 crore over two years.

The YSRCP chief further alleged that lack of government support had adversely affected SHG credit growth. He said SHG lending, which stood at ₹49,696 crore in 2023-24, declined to ₹41,623 crore in 2024-25 and further to ₹41,105 crore in 2025-26.

Accusing the ruling alliance of reneging on its promises to women, Mr. Jagan said the decline in SHG credit growth was a direct consequence of the government’s failure to implement the promised interest subvention measures.