Andhra Pradesh's Fiscal Balancing Act: Navigating Revenue Deficits

The state of Andhra Pradesh is facing a daunting fiscal challenge as its revenue deficit escalated to 110% of the projected annual budget, hitting Rs 36,741 crore within the initial four months of the fiscal year.

This significant overshoot from the expected Rs 33,186 crore deficit for the full year necessitates increased dependence on either borrowings or central government support.

While the state's GST collections have shown promising growth, achieving 61% of the budgeted estimate, the overall fiscal health remains under scrutiny as the fiscal deficit reached 61% of its yearly target in just four months.

(With inputs from agencies.)