Andhra Pradesh's revenue deficit breaches 110% of budget estimate in first four months of FY26

Andhra Pradesh's revenue deficit crossed 110% of the budget estimate, by reaching Rs 36,741 crore in the first four months of the current fiscal, against the projected deficit of Rs 33,186 crore for the entire year, indicating that the state will have to rely heavily on borrowings or Central government assistance.

According to the latest statistics released by the Comptroller and Auditor General (CAG), the fiscal deficit for April-July period stood at Rs 48,354.02 which is about 61% of the projected Rs 79,926.90 crore for the financial year.

However, the Goods and Services Tax collections grew significantly, achieving 61% of the budget estimate of Rs 27,477.15 crore in the four months.


Of the total revenue receipts of Rs 2,97,929.16 crore for the full year, the state achieved Rs 33% at Rs 98,281.42 crore, including Rs 49,198.29 crore of borrowings and other liabilities in the last four months.

India Ratings & Research, in a latest report, said for FY26, the state government has estimated a revenue deficit of 1.8 per cent and a fiscal deficit of 4.4% of the GSDP. The debt/GSDP is projected to be at 35.5% for FY26.

The state has spent over Rs 50,000 crore towards the Social Sector, including pensions, during the past four months.