A.P.’s fiscal stress deepening

[andhra_jp]

A.P.’s fiscal stress deepening amid high revenue deficit for three years: CAG report

Data from the Comptroller and Auditor General highlights a troubling pattern of rising committed expenditure, weak non-tax revenues, and subdued capital spending

Andhra Pradesh’s finances have faced sustained pressure over the past three years, with revenue consistently falling short of expenditure by November each year. This gap has forced the State to rely heavily on borrowing, pushing the fiscal deficit close to annual targets much earlier than planned and exposing structural weaknesses in revenue mobilisation and expenditure management.

Data from the Comptroller and Auditor General (CAG) highlights a troubling pattern: rising committed expenditure, weak non-tax revenues, and subdued capital spending. In the current financial year (2025–26), the State recorded a revenue deficit of ₹54,355 crore by November, closely following deficits of ₹56,805 crore in 2024 and ₹47,063 crore in 2023. This shows that fiscal stress has become a recurring feature rather than a one-off deviation.

On the expenditure side, committed spending dominates the budget. Revenue expenditure exceeded 60% of annual estimates by November in all three years, largely driven by salaries, pensions, interest payments, and subsidies. Interest payments alone climbed from ₹18,302 crore in November 2023 to over ₹24,000 crore by November 2025, reflecting the rising cost of debt servicing.

Subsidy expenditure also remains substantial. In FY 2025–26, subsidies are estimated at ₹25,513 crore, with ₹20,464 crore already spent by November — over 80% of the annual target. In previous years, subsidy spending exceeded the budget estimates by wide margins: 120% in 2024 and 121% in 2023, highlighting persistent pressure on welfare allocations.

Revenue receipts, meanwhile, have lagged behind targets, reaching only ₹1.05 lakh crore by November 2025, which is 48% of the annual estimate. Tax revenue, including GST and the State’s share of Union taxes, remains the primary contributor, but growth is insufficient to match rising expenditure. Non-tax revenue continues to underperform, contributing less than one-fifth of the budget estimate in 2025–26, compared to relatively better, but still inadequate, performance in 2023–24, as per the CAG report.

While revenue collection is steady, it is insufficient to meet routine and committed expenditures. Heavy reliance on borrowing to bridge the gap underscores the need for fiscal reforms, improved revenue mobilisation, and careful expenditure management. Without these measures, the debt burden will continue to rise, constraining the State’s ability to invest in development and welfare programmes, as per indications given in the CAG report.

[SRK_SRK]

we don't care, we want Bramaravati.

[7691]

Fake post tammullu

[Junior_]

Oka Somalia oka Andhra Bankruptcy ki pettindi peru

[akkum_bakkum]

2 minutes ago, Junior_ said:

Oka Somalia oka Andhra Bankruptcy ki pettindi peru

Parledu bro....we have tg to take money from. Center chuskuntundi...AP alone wont go down...Its part of Indian Union remember?

 

Papam ee aarthanaadalu jaggadi time lo kuda chesunte bagundedi...janalu konchem early ga melkone vaallu.

[2024]

1 minute ago, akkum_bakkum said:

Parledu bro....we have tg to take money from. Center chuskuntundi...AP alone wont go down...Its part of Indian Union remember?

 

Papam ee aarthanaadalu jaggadi time lo kuda chesunte bagundedi...janalu konchem early ga melkone vaallu.

boseDK gadi time lo pakistan langa gallu andaru cut mirchi gallavi 

[Junior_]

8 minutes ago, akkum_bakkum said:

Parledu bro....we have tg to take money from. Center chuskuntundi...AP alone wont go down...Its part of Indian Union remember?

 

Papam ee aarthanaadalu jaggadi time lo kuda chesunte bagundedi...janalu konchem early ga melkone vaallu.

Anna Jaggu time lo Srilanka ani pracharam chesindhi meere kada. Ippudu nijalu maatladuthunte don’t feel.

[Android_Halwa]

Just 3 lakh crore appu in 18 months.

Emi ra visionary, idena wealth generation ante ? 

[akkum_bakkum]

17 minutes ago, Android_Halwa said:

Just 3 lakh crore appu in 18 months.

Emi ra visionary, idena wealth generation ante ? 

avunraa....em eekkuntaavoo eekko ra. yedupu thappa.

[akkum_bakkum]

30 minutes ago, Junior_ said:

Anna Jaggu time lo Srilanka ani pracharam chesindhi meere kada. Ippudu nijalu maatladuthunte don’t feel.

papam janalaki aa intelligence leka gelipincharule....