Another key statistic concerning the economic situation of Andhra Pradesh has come to light. The Centre has officially revealed that the state’s GST-GSDP (Goods and Services Tax–Gross State Domestic Product) ratio has declined significantly over the past seven years.
Union Minister of State for Finance Pankaj Chaudhary disclosed these details in a written reply to a question raised by Kadapa MP Y.S. Avinash Reddy in the Lok Sabha.
According to the response, Andhra Pradesh’s GST-GSDP ratio, which stood at 2.40% in 2018–19, declined to 1.90% by 2025–26. This indicates that GST revenue has been declining in comparison with the overall size of the state’s economy. The Centre also placed GST settlement figures for the financial years 2024–25 and 2025–26 before Parliament.
How Has Andhra Pradesh’s GST-GSDP Ratio Declined Over Seven Years?
According to the data released by the Central Government, the GST-GSDP ratio in Andhra Pradesh was as follows:
| Financial Year | GST-GSDP Ratio |
|---|---|
| 2018–19 | 2.40% |
| 2019–20 | 2.20% |
| 2020–21 | 1.40% |
| 2021–22 | 2.00% |
| 2022–23 | 2.20% |
| 2023–24 | 2.20% |
| 2024–25 | 2.10% |
| 2025–26 | 1.90% |
The figures show that the GST-GSDP ratio declined by 0.50 percentage points between 2018–19 and 2025–26.
What Did the Centre Say in the Lok Sabha?
Responding to a question raised by Kadapa MP Y.S. Avinash Reddy, Union Minister of State for Finance Pankaj Chaudhary presented details related to the GST-GSDP ratios of various states in the country.
The Centre also officially placed before the House the GST settlement figures for the financial years 2024–25 and 2025–26.
How Much Did Andhra Pradesh Receive Through GST Settlements in Two Years?
According to the details released by the Central Government:
Financial Year 2024–25
- CGST Settlement: ₹4,012 crore
- IGST Settlement: ₹4,557 crore
- Total Settlement: ₹8,569 crore
The settlement details also included:
- Through Treasury: ₹3,230 crore
- Through Adjustments: ₹7,826 crore
- Cess: ₹448 crore
- Total: ₹4,664 crore
- State Account: ₹3,799 crore
- Total Settlement: ₹8,797 crore
These figures were included in the GST settlement data released by the Centre.
Financial Year 2025–26
- CGST Settlement: ₹4,027 crore
- IGST Settlement: ₹3,952 crore
- Total Settlement: ₹7,979 crore
The details included:
- Through Treasury: ₹775 crore
- Through Adjustments: ₹4,921 crore
- Cess: ₹8,696 crore
- Total: ₹4,911 crore
- State Account: ₹3,951 crore
- Total Settlement: ₹8,870 crore
Another Key Statistic Released by the Centre
According to the overall settlement data released by the Centre for the two years:
2024–25
- Total Settlement: ₹34,301 crore
The Centre disclosed details related to the state’s share, adjustments and IGST distribution.
2025–26
- Total Settlement: ₹34,301 crore
- Through Treasury: ₹15,211 crore
- Through Adjustments: ₹19,090 crore
These figures were revealed as part of the official response submitted by the Central Government in Parliament.
What Does the Decline in the GST-GSDP Ratio Indicate?
The GST-GSDP ratio is an important indicator that compares the GST revenue collected by the government with the wealth generated by the state’s economy.
A decline in this ratio may indicate that:
- GST collections are not increasing in line with the growth of the state’s economy.
- There may be weaknesses in consumption, business activity and tax collections.
- Greater focus may be required on expanding the tax base, preventing tax evasion and increasing revenue.
Why Has the Issue Gained Political Significance?
The issue has also assumed political significance. Political parties in Andhra Pradesh have already been engaged in a debate over the state’s financial management, revenue growth and tax collections.
Against this backdrop, the official figures disclosed by the Central Government in the Lok Sabha are likely to trigger a fresh debate over the state’s economic performance.
However, the Centre did not provide any specific explanation in its reply regarding the exact reasons behind the decline in Andhra Pradesh’s GST-GSDP ratio.
Will the Centre’s Data Lead to a Fresh Debate Over Andhra Pradesh’s Economic Management?
The official figures revealed in the Lok Sabha clearly show that Andhra Pradesh’s GST-GSDP ratio declined from 2.40% in 2018–19 to 1.90% in 2025–26.
The Centre also placed before Parliament details of GST settlements for the financial years 2024–25 and 2025–26.
While these figures have triggered a fresh discussion over the state’s revenue-generating capacity, tax collections and financial management, it remains to be seen how the Andhra Pradesh government will address this declining trend in the future.
