AP spends Rs 30 paisa of each rupee from loans in FY 23-24

The Controlled and Auditor General (CAG) report has highlighted the financial situation during the YSR Congress Party (YSRCP) rule in Andhra Pradesh. According to the report, in the fiscal year 2023-24, nearly 52 paisa out of every rupee was collected by the State government from the tax revenues. Out of which 30 paisa of each rupee was derived from loans. Apart from this 14 paisa came from grants-in-aid, while 3 paise were generated from non-tax sources, along with additional earnings through loan recoveries. The previous government spent 15 paise out of each rupee on salaries. 

For Direct Benefit Transfers (DBTs), 13 paise was allocated,and 12 paisa went toward interest payments in the previous government.  Only 9 paisa per rupee was spent on local bodies and on major works. Additionally, just 9 paisa was devoted to capital expenditure. The CAG report indicates that the state's own tax revenue for 2023-24 is estimated at Rs. 922 crores. In April 2023, the state's reserves with the Reserve Bank of India (RBI) showed a shortfall of Rs 19 crores. By March 2024, a deficit of Rs 33 crores had been recorded at the RBI, and there was no actual cash balance in the investment account at the end of the year.

The report states that the government debt for 2023-24 reached Rs 4,86,151 crores, representing 34 percent of the state's gross domestic product (GDP). Furthermore, government guarantees totalling Rs 2,23,004 crore were issued in 2023-24, and Rs. 69,626 crores were transferred from the Consolidated Fund to Public Deposit accounts.