Andhra Pradesh suffered a severe financial crisis during 2024-25, as indicated by huge revenue and fiscal deficits, a sharp fall in capital expenditure, and worsening debt sustainability, according to the Comptroller and Auditor General (CAG) of India.
The revenue deficit shot up to ₹60,285 crore, while the fiscal deficit went up sharply to ₹81,071 crore, exceeding the fiscal responsibility and budget management (FRBM) target of 2.7% of the gross state domestic product (GSDP).
The state had to borrow even for day-to-day expenses, significantly increasing its interest burden. The CAG report pointed out that the state government had indulged in borrowings of ₹87,773 crore, but spent only ₹21,173 crore on capital expenditure, accounting for just 24%.
The report also expressed concern over alarming public debt and other liabilities of the state, which showed a net increase of ₹81,071 crore (16.68%) over the previous year.
