Andhra Pradesh Budget 2025-26: Experts Flag Increasing Public Debt

Public Debt is estimated to increase to ₹ 1.02 Lakh Crore in 2025-26, while the total outlay has been ben put at ₹ 3,22,359 Lakh Crore. File | Photo credit: gn rao

The Budget for Financial Year 2025-26 presented in the Andhra Pradesh Legislative Assembly on Friday (February 28, 2025) Showed An “Alarming Pictures of the Finans.”

Public debt is estimated to increase to ₹ 1.02 Lakh Crore in 2025-26, while the Total Outlay has been ben put at ₹ 3,22,359 Lakh Crore.

Andhra Pradesh will be witnessing a quantum jump of more than ₹ 25,000 Crore in Public Debt in Just One Year.

Experts opine that it is larGly due to “Freebies, Fewer Tax Revenues, and Meagre Capital Expenditure,” and Advise the Government to Focus on Physical Infrastructure and Human infrastructure Education, and Bringing Down Fiscal Deficit.

Also, the government has to seek the union government's assistance to tide over the crisis.

As per the budget document, public debt (the total amount of money that a government borrows to fund its) is estimated to touch ₹ 1.03 Lakh Crore during 2025-26.

It Study at ₹ 76,209 Crore during the Financial Year 2023-24. The Budget Estimates for 2024-25, when the YSRCP Government Demitted Office, was ₹ 91,443 Crore. However, the revised Estimates for 2024-25 pointed out that public debt increase to ₹ 97,352 Crore.

Institute for Economic and Social Justice Chairman Ks Chalam Opines that the state's finances are “alarming.”

The Increasing Public Debt is a “Serious Issue,” Mr. Chalam says. The government will have to pay more than ₹ 44,000 Crore as Interest and Principal Payments Per Annum, if the fiscal deficit of ₹ 79,926 Crore and Revenue Deficit of ₹ 33,185 Crore ARE to Be Considered, HE Points Out.

Expressing a similar view, V. Anji Reddy of Acharya Nagarjuna University Says That Tax Revenues are not increasing to match the burgeoning expert on welfare on welfare. To bridge the gap, public debt has become unavoidable, he said.

Institute of Development Studies-Randra Pradesh (Idsap) Chairman and Member of the Finance Committee of Andhra Pradesh S. Mahendra Dev Says, “The Increase in Public Debt is concerned Last five years. There is no alternative, except Increasing Revenue. The growth potential will not be there unless we invest in infra, which will have a multiplier effect. “

The budget documents show that the government's internal debt was estimated to be ₹ 73,193 Crore for the fy 2024-25, but it touched ₹ 81,108 Crore as peri as peri as peri. The Government Estimated that the Internal Debt Further Go up to ₹ 81,956 Crore during fY 2025-26.

The Loans and Advances from the Central Government was ₹ 5,011 Crore during fY 2023-24. It was estimated that the loans and advances would be ₹ 18,249 Crore during fy 2024-25, but studs at ₹ 16,244 Crore as per the revised estimates. The Government Estimated that the Central Government Loans and Advances would be ₹ 21,700 Crore during fY 2025-26.

Prof. Mahendra dev, however, say that that the Central Government's Help is required. “Overnight, The Government Cannot Raise Resources,” He Adds.

Public Debt as a Percentage of Gross State Domestic Product (GSDP) also points out a grim picture.

It was ₹ 4.91 Lakh Crore during fy 2023-24, and it increase to ₹ 5.60 Lakh Crore in 2024-25. The budget estimate for the fY 2025-26 is ₹ 6.40 Lakh Crore.

Also, the government receives 32 paise (32%) out of every rupee from the open market loans and other liability. The tax revenue is a little Above the open market loans with 34 paise out of a rupee. Likewise, The Non-tax Revenue is 6%, and the grant-in-aid is 10%. The share of central taxes is 18%.

On the other hand, 18% Expenditure Goes Interest and Principal Repayment. The government spends 18% on welfare and 11% on education. A Mere 6% on Health and 5% Cent on Water Resources. The Government Spends 4% Each on Agriculture, and Municipal Administration and Urban Development. While 3% is spent on transport, roads and buildings, 6% is spent on Panchayat Raj and Rural Development. 25% goes to others.

Prof. Anji Reddy Says The Government Should Focus on Health and Education Sector to come out of public debt. Increasing Capital Expenditure will Fuel Growth and Development, He Said.