Amaravati, March 7 The Andhra Pradesh government availed ₹1.72 lakh crore through special drawing facilities, ways and means advances, and overdraft during 2024-25, resulting in paying ₹303 crore towards interest, according to a CAG report.
The Comptroller and Auditor General report, which was presented in the Assembly on Friday, stated that the state government maintained a minimum cash balance with the Reserve Bank of India for only eight days without obtaining any WMA from the RBI.
The report further stated that the government's revenue deficit exceeded the Fiscal Responsibility and Budget Management (FRBM) target of 2.7 per cent of GSDP, remaining at 3.75 per cent even in 2024-25. This forced the state to borrow for day-to-day expenses and significantly increased its interest burden.
The fiscal deficit remained at 5.05 per cent against the mandated 4 per cent ceiling, driving total borrowings to ₹81,071 crore, crowding out capital expenditure, worsening debt sustainability, and severely restricting fiscal space for future growth.
"During 2024-25, the Government of Andhra Pradesh availed ₹42,004 crore Special Drawing Facility for 71 days and paid ₹188.82 crore as interest, ₹73,897 crore Ways and Means Advances for 179 days and paid ₹82.30 crore as interest and ₹56,631 crore Overdraft for 107 days and paid ₹32 crore as interest," it said.
When contacted, TDP spokesperson Neelayapalem Vijay Kumar said when the NDA government took over administration in Andhra Pradesh on June 10, 2024, the previous YSRCP regime had already borrowed ₹38,000 crore.
"During the remaining year, the NDA government in the state borrowed ₹42,000 crore, leading to a high debt," the TDP leader told