Amaravati, Andhra Pradesh government has benefited $1.72 lakh crore through special drawing facilities, methods and means provided and overdraft during 2024-25, and will be disbursed. $303 crore towards interest, according to the CAG report.
The state government maintained minimum cash balance with the RBI for just eight days without availing WMA from the RBI, the Comptroller and Auditor General’s report, tabled in the Assembly, said on Friday.
The report further stated that the government’s revenue deficit exceeded the fiscal responsibility and budget management target of 2.7 percent of the General Secretariat for Development Planning, and remained at 3.75 percent even in the period 2024-2025. This forced the state to borrow to cover daily expenses and greatly increased the interest burden.
The fiscal deficit remained at 5.05 percent against the ceiling set at 4 percent, which pushed total loans to $81,071 lakh crore, crowding out capital expenditure, worsening debt sustainability, and severely constraining fiscal space for future growth.
“During 2024-25, Andhra Pradesh government has benefited $Rs 42,004 crore of special drawing facility for 71 days has been disbursed $188.82 crore interest $73,897 Crore Ways and Means Advances for 179 days and paid $82.30 Crores as interest and $Rs 56,631 crore overdraft for 107 days and paid $32 crores as interest, she said.
When contacted, TDP spokesperson Neelayapalem Vijayakumar said when the NDA government took over administration in Andhra Pradesh on June 10, 2024, the previous YSRCP regime had already borrowed $38,000 Crores.
“For the remaining year, the NDA government in the state borrowed $42,000 crore, resulting in higher debts,” the TDP leader told PTI.
He further said that the reliance on RBI loans was due to legacy issues left behind by the previous government, such as unpaid bills of contractors and employees, among others.
“The Andhra Pradesh government has maintained the minimum cash balance with the RBI for only eight days without availing WMA from the RBI,” the CAG said.
Although it is necessary that the entire borrowed money be used to finance productive capital assets, while revenue proceeds should be reserved for debt interest servicing and principal repayment, the state government spent only 24% of the current year’s borrowings on capital expenditure.
The state government did not disclose the amount or source of proposed extra-budgetary loans in its 2024-25 budget and informed the Ministry of Finance that no extra-budgetary commitments were availed during 2024-25.
However, there was an outstanding amount of… $Rs 27,241.99 crore by the end of March 31, 2025, CAG said.
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