The financial situation of Andhra Pradesh is a topic of discussion now. This happened after a new government came to power. People are wondering if the large loans taken by the state are really helping the people or just being used for short term gains and publicity.
According to the numbers being discussed Andhra Pradesh has taken on ₹3.40 lakh crore in debt over the last two years. This includes money borrowed directly by the government and loans taken through companies and institutions.
Andhra Pradesh Government Debt: How Much Was Borrowed?
Here is a breakdown of the loans:
| Category | Amount |
|---|---|
| Direct borrowings by the state government | ₹1,12,504 crore |
| Loans raised through corporations | ₹1,80,603 crore |
| Other guaranteed liabilities and debts | ₹47,387 crore |
| Total Debt | ₹3,40,494 crore |
These numbers have started a debate among the people and politicians in the state.
Are Off-Budget Borrowings Becoming a Concern?
One of the issues is the big increase in “off-budget borrowings”. These are loans taken through companies and institutions of directly through the state budget.
Critics say these loans are increasing faster than government loans.
For example:
- ₹81,071 crore was borrowed in 2024-25
- ₹81,532 crore was borrowed in 2025-26
- Thousands of crores more were borrowed in the two months of 2026-27
This is making people worry about how the state is managing its money.
“What Did the Government Give the People After Taking Much Debt?”
This is the main question being asked by the opposition parties and economic experts.
They want to know if the government has:
- Brought industries to the state
- Created many jobs
- Helped farmers in a big way
- Built roads and infrastructure
- Started projects that will make money for the state
They say that even though the debt has increased a lot there is not much to show for it in terms of development.
Government’s Stand: Loans Were Used for Welfare
The government says the loans were needed to help people.
They claim the money was spent on:
- Helping women financially
- Pension schemes
- services for the public
- Helping farmers
- Education and health programs
The government thinks these programs are necessary to help people who are not doing well.
Major Off-Budget Borrowings Through Companies
It seems many companies and institutions took loans.
Some examples are:
| Corporation / Institution | Borrowed Amount |
|---|---|
| Housing Corporation | ₹21,700 crore |
| AP Medical Infrastructure | ₹14,000 crore |
| AP FiberNet | ₹8,500 crore |
| Power sector institutions | Thousands of crores |
| Municipal bodies | Massive loans |
| Various development corporations | Crores in borrowings |
Rising Interest Burden on the State
As the debt increases the state also has to pay interest.
Experts warn that thousands of crores are being spent on interest payments every year.
They are worried that if this continues:
- It may be hard to keep funding welfare programs
- There may be money for development
- The states economy may face problems
This is making people worry about the states financial future.
Growing Public Concerns
Ordinary people are asking questions like:
- Where did all the borrowed money go?
- What projects will help the states economy in the run?
- Who will pay back these loans?
- Will our children have to pay for these debts?
These concerns are becoming a part of the conversation in Andhra Pradesh.
Debt Politics Likely to Heat Up
The issue of debt is going to be a big fight, between politicians.
The government says it borrowed money to help people. The opposition parties say it is just “debt-driven governance”.
One question is being asked again and again:
“₹3.40 lakh crore was borrowed…. Who actually benefited from that money?”
