Andhra Pradesh faces fiscal strain despite strong revenue growth in 2024-25

A revenue surge masks deeper fiscal woes as the state races to curb spending. Can Naidu’s government balance growth and budget discipline?

, and Administrator

2025 November 10 . 7:14 AM

1 min read

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Andhra Pradesh faces fiscal strain despite strong revenue growth in 2024-25

Andhra Pradesh, led by Chief Minister Nara Chandrababu Naidu, has collected Rs 138,128.61 crore in revenue receipts for the first six months of the fiscal year 2024-25, which is 46% of the total estimated revenue receipts of Rs 2,97,929.16 crore for the year. However, the state has already exceeded its revenue deficit budget estimate by 140%, reaching Rs 46,652.41 crore in the first half of the fiscal.

The state's fiscal deficit for April-September stands at Rs 62,213.17 crore, which is approximately 78% of the projected Rs 79,926.90 crore for the entire year. The projected revenue deficit for the year is Rs 33,186 crore. Despite these figures, the state has managed to allocate Rs 11,715.09 crore towards capital expenditure during the first half of the fiscal.

Goods and Services Tax (GST) collections in the first half of the year have reached Rs 24,821.18 crore, representing 43.18% of the budget estimate for the full year.

While Andhra Pradesh has made progress in collecting revenue receipts, the state faces significant challenges in managing its fiscal deficit. The government will need to implement effective measures to control expenditure and increase revenue to meet its budget targets for the year.