After a 10-year break, Naidu rode to power in last year's Assembly elections on the back of his image as a development-oriented leader, while YSR Congress was relegated to the second position and the Congress, once a dominant force in the southern state, decimated.
Naidu, however, found himself in an unenviable position as the new Andhra Pradesh (post formation of Telangana), comprising 13 districts of coastal Andhra and Rayalaseema had no capital of its own and the state had a revenue deficit of about Rs 16,000 crore.
The burden on the seasoned leader compounded with the huge funds required for implementation of his pre-election promises like waiver of loans for farmers and self-help groups for women.
Naidu had to announce a 43 per cent hike in salaries for state government employees after the Telangana government made such an offer to its own staff.
Naidu, whose TDP shares power with BJP both at the Centre and in AP, is also expected to deliver on promises made by the previous UPA government to Andhra Pradesh during bifurcation like special category tag to the residuary state.
"It has been a very challenging year. We have, as a result of bifurcation and as a result of the last 10 years of mis-governance and corruption, inherited a very complex political, administrative and financial environment.
"The uncertainty during the last five years of the previous (Congress) government has compounded and complicated the challenges," Parakala Prabhakar, Advisor (Communications) to the state government, told PTI here today.
The government faced deficit on the fiscal and other fronts and had to leave the capital (Hyderabad), he said.
"Because, the assets were all built in Hyderabad, they went to Telangana. Because, the larger chunk of population belongs to Andhra Pradesh, we have got more liabilities," Prabhakar said.
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