Briefly give an account of revenue and fiscal deficits and the debt positions of Andhra Pradesh for the last five years (since 2014-15).
In short
Since 2014-15, Andhra Pradesh has run persistent revenue deficits and kept its reported fiscal deficit near FRBM limits, while debt, including off-budget borrowings, rose steeply. The revenue deficit jumped 405% to ₹43,487 crore in 2022-23, and liabilities reached ₹5,79,621 crore (43.99% of GSDP) by March 2023.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 250 words
Persistent Revenue Deficits
Since 2014-15, Andhra Pradesh has faced continuous revenue deficits, with a 405% increase in 2022-23, driven by revenue expenditure exceeding receipts and committed expenditure at 64.6% of revenue receipts. This limits funds for new initiatives and forces borrowing for routine expenses.
Revenue Mobilization Challenges
Own tax revenue grew at a CAGR of around 6% from 2018-19 to 2022-23, but growth slowed recently, constraining the state’s ability to bridge the revenue gap and exacerbating fiscal stress.
Fiscal Deficit Near Limits
The reported fiscal deficit has been kept broadly near FRBM limits, though off-budget borrowings understate it, with the 2026-27 budget targeting 3.8%4, indicating efforts toward fiscal consolidation despite capital expenditure plummeting to 0.55% of GSDP.
Rising Debt and Off-Budget Borrowings
Andhra Pradesh’s total liabilities reached ₹5,79,621 crore (43.99% of GSDP) by March 2023, with off-budget borrowings at ₹1,28,048 crore (9.72% of GSDP), posing transparency and sustainability concerns due to reliance on non-transparent debt instruments.
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Government budgeting in Andhra Pradesh6 questions
Asked in 5 of 8 sittings since 2008
Most tested: Fiscal deficit, revenue deficit, and debt position of Andhra Pradesh after bifurcation.
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Question from the official APPSC Group-I Mains 2020 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.