Andhra Pradesh's finances in trouble, CAG report warns
Andhra Pradesh's latest CAG report reveals the state's finances are in trouble for 2024-25.
Both revenue and fiscal deficits have shot up under the TDP-led government: revenue deficit reached ₹60,285 crore (3.75% of GSDP), blowing past legal limits, while the fiscal deficit hit ₹81,071 crore (5.05% of GSDP).
The state's own revenues barely grew, tax collections missed targets by a wide margin, and non-tax revenues also fell short.
Capital spending dropped even as loans rose 16%
This matters because it means Andhra Pradesh is borrowing more but investing less in development—capital spending dropped even as loans rose 16%.
With public debt swelling and hidden off-budget loans adding to the mess, analysts and oversight bodies have expressed concern about fiscal sustainability and potential impacts on jobs, public services and long-term opportunities in the state.
If things don't improve, it could affect jobs, public services, and future opportunities across Andhra Pradesh.