Andhra Pradesh Faces Financial Shortfall Amid Rising Borrowings

Andhra Pradesh struggles with revenue collection, achieving only 61% of its Rs 2.18 lakh crore target, while borrowings exceed the target by Rs 10,000 crore, reaching over Rs 90,000 crore as of January 2025. The state's financial status under CAG review raises concerns with two months left in the fiscal year.

Andhra Pradesh is facing significant challenges in revenue collection, reaching only 61% of its Rs 2.18 lakh crore goal, as reported by the Comptroller and Auditor General (CAG). With only two months remaining in the fiscal year 2025-26, the state has already surpassed its borrowing target by Rs 10,000 crore.

Despite the N Chandrababu Naidu-led government estimating borrowings of about Rs 80,000 crore, loans have climbed to Rs 90,768 crore, signifying 114% achievement of the borrowing target. This increase in debt is compounded by the state's inability to meet its revenue projections.

The situation puts the Andhra Pradesh government's financial management under scrutiny, especially given the lack of immediate responses from TDP leaders or government officials regarding the CAG findings. As the fiscal year end approaches, Andhra Pradesh faces mounting pressure to address its economic malaise.