A recent CAG report has revealed that the Andhra Pradesh government relied heavily on RBI loans during the 2024-25 financial year, with a total borrowing of ₹1.72 lakh crore.
According to the report, the state government maintained a minimum cash balance with the Reserve Bank of India for only eight days without availing any WMA from RBI.
The report further stated that the government's revenue deficit exceeded the Fiscal Responsibility and Budget Management target of 2.7 per cent of GSDP, remaining at 3.75 per cent even in 2024-25.
This forced the state to borrow for day-to-day expenses and significantly increased its interest burden.
The fiscal deficit remained at 5.05 per cent against the mandated 4 per cent ceiling, driving total borrowings to ₹81,071 crore, crowding out capital expenditure, worsening debt sustainability, and severely restricting fiscal space for future growth.
When contacted, TDP spokesperson Neelayapalem Vijayakumar said that the dependence on RBI loans was due to legacy issues left by the previous government.
The state government had not disclosed the quantum or source of proposed off-budget borrowings in its Budget of 2024-25 and informed the Ministry of Finance that no off-budget liabilities were availed during 2024-25.
However, there was an outstanding amount of ₹27,241.99 crore by the end of 31 March 2025, the CAG said.
