The Andhra Pradesh government’s revenue deficit has crossed the Fiscal Responsibility & Budget Management (FRBM) target of 2.70 percent GSDP, remaining at 3.75 percent in FY 2024-25, forcing the state to borrow for day-to-day expenses and significantly increasing its interest burden.
On the other hand, the fiscal deficit remained at 5.05% against the mandated 4% ceiling, pushing total borrowings to ₹81,071 crore, crowding out capital expenditure, worsening debt sustainability and severely reducing the fiscal scope for future growth, according to Accounts at a Glance for 2024-25 prepared by the Auditor General of AP under the guidance of the Accountant General of AP. (CAG).
These are some of the key figures released in a report presented to the Legislative Assembly by Finance Minister Payyavula Keshav on Friday.
The report stated that understatement of revenue and cash balances and overstatement of capital expenditure had an impact of nearly ₹6,120 crore on state finances, mentioning that expenditure on revenue and cash balances was understated at ₹3,375.60 crore and ₹95.70 crore, while capital expenditure was overstated at ₹92.2 crore.4
The data were marked as incorrect classification or non-compliance with legal provisions that had an impact on the economy of the state in a given year. The report said the state government did not disclose the amount or source of proposed extra-budgetary borrowing (OBB) in its 2024-25 budget.
The government has informed the Union Finance Ministry that no OBBs have been utilized during the year and an amount of ₹ 27,241.99 crore remained till 31 March 2025. Scrutiny of the vouchers revealed that the government allocated and spent ₹ 7,240.57 crore, the same funds were reported for aid or grants on account.
It was further mentioned that institutional loans to the tune of ₹ 1,580.78 crore have been channeled through Personal Deposit (PD) accounts in accordance with relevant government regulations. This practice of crediting PD accounts overstated the public account liability if the amount remained unspent by the end of the year.
The report found that remittance of ₹862 crore by AP State Beverages Corporation Limited through a single challan stating the purpose as “transfer of special margin for consolidation of state fund to NTR Bharosa Pension Scheme” was erroneous as the amount should not have been remitted under tax revenue.
Published – 06 March 2026 20:50 IST
