The data released by the Comptroller and Auditor General (CAG) on the budget progress for the first four months of the 2026–27 financial year has brought Andhra Pradesh’s financial position into sharp focus.
According to the figures, the Andhra Pradesh government borrowed ₹49,134 crore between April and July, while the state’s revenue deficit reached ₹36,942 crore during the same period.
This means Andhra Pradesh appears to be at the top among states in both borrowings and revenue deficit during the first four months of the financial year. The figures have raised questions over whether the Chandrababu Naidu-led coalition government’s financial management is increasingly becoming dependent on borrowings.
₹49,134 Crore Borrowed in Just Four Months
The CAG has released data on the budget performance of various states for the first four months of the 2026–27 financial year.
According to the figures, Andhra Pradesh borrowed ₹49,134 crore from April to July.
That works out to an average borrowing of approximately ₹12,300 crore every month.
With the financial year still in its early stages, such a high level of borrowing has raised concerns over the state’s financial position.
More significantly, the state has already borrowed 64.76% of the total borrowing projected in the annual budget within just four months.
If borrowing continues at the same pace during the remaining months, questions are being raised over how high the state’s overall debt burden could rise by the end of the financial year.
₹15,521 Crore Borrowed in July Alone
The extent of Andhra Pradesh’s borrowing can be seen from the July figures.
According to the CAG data, the state borrowed a staggering ₹15,521 crore in a single month.
In other words, Andhra Pradesh borrowed ₹49,134 crore in four months, with more than ₹15,500 crore borrowed in July alone.
The figures have triggered criticism over the government’s financial management and the growing burden of debt on the state economy.
Andhra Pradesh Tops the Borrowing List
The comparison with other states makes Andhra Pradesh’s position even more striking.
According to the figures reported in the clipping, the borrowings during the first four months were:
- Andhra Pradesh – ₹49,134 crore
- Telangana – ₹33,729 crore
- Tamil Nadu – ₹32,925 crore
- Arunachal Pradesh – ₹31,410 crore
- Rajasthan – ₹29,720 crore
- Kerala – ₹26,461 crore
- West Bengal – ₹13,222 crore
- Uttar Pradesh – ₹12,041 crore
- Punjab – ₹8,548 crore
- Goa – ₹1,149 crore
With borrowings of ₹49,134 crore, Andhra Pradesh stands at the top of this comparison.
The gap between Andhra Pradesh and several other states also highlights the scale of borrowing during the first four months of the financial year.
Andhra Pradesh Also Leads in Revenue Deficit
The concern is not limited to borrowings.
Andhra Pradesh’s revenue deficit reached ₹36,942 crore during the first four months of the financial year.
A revenue deficit occurs when a government’s regular expenditure exceeds its regular revenue.
A large revenue deficit, combined with heavy borrowing, can increase the government’s dependence on debt to meet its financial requirements.
In simple terms, the larger the revenue deficit, the greater the pressure to raise additional resources, including through borrowing.
The combination of a ₹36,942 crore revenue deficit and ₹49,134 crore in borrowings has therefore raised serious questions about the state’s financial management.
₹36,942 Crore Revenue Deficit: The Bigger Concern
The key issue is not merely the amount borrowed, but why the state continues to face such a large gap between revenue and expenditure.
Borrowing can be justified when it is used for productive investments that generate future economic activity and revenue. However, sustained borrowing to meet recurring expenditure can create greater financial pressure in the future.
With Andhra Pradesh already reporting a revenue deficit of ₹36,942 crore in just four months, the government faces the challenge of increasing its revenue while controlling expenditure.
The government will also need to address concerns over interest payments, debt servicing and the sustainability of its borrowing strategy.
64.76% of Budgeted Borrowing Already Used
Another important aspect of the CAG figures is that Andhra Pradesh has already completed 64.76% of the borrowing target proposed in the 2026–27 budget within the first four months.
The financial year still has several months remaining.
This raises important questions:
- Will the state need to resort to additional borrowing during the remaining months?
- How much will the total debt burden increase by the end of the financial year?
- How much of the borrowing is being directed towards productive capital expenditure?
- What measures are being taken to increase state revenue?
- How will the government manage future interest and debt repayment obligations?
These are questions that require clear answers from the government.
How Sustainable Is the “Borrowing for Development” Model?
Governments borrowing money for infrastructure and other productive investments is not unusual. The critical issue, however, is how the borrowed money is being spent and whether it generates long-term economic returns.
The latest figures raise questions because they show four significant numbers:
₹49,134 crore borrowed in four months.
₹36,942 crore revenue deficit.
₹15,521 crore borrowed in July alone.
64.76% of the budgeted borrowing already completed.
Taken together, these figures provide a reason to closely examine the state’s fiscal position and debt management.
The real test is whether the borrowed funds are creating productive assets, strengthening the state’s revenue base and supporting sustainable economic growth.
The Debt Burden Ultimately Falls on the Public
Every government borrowing creates future financial obligations in the form of principal repayment and interest payments.
Therefore, the impact of today’s borrowing can extend well beyond the current financial year.
The government needs to provide greater clarity not only on the size of its borrowings but also on how the money is being used, how revenue is being increased, how the revenue deficit is being controlled and how the interest burden is being managed.
Without fiscal discipline, continued borrowing could place increasing pressure on the state’s finances and future budgets.
CAG Figures Put Andhra Pradesh’s Budget Progress Under the Scanner
The coalition government has repeatedly spoken about development and economic progress since coming to power. However, the budget performance figures for the first four months present a different set of numbers.
Andhra Pradesh ranks first in the reported borrowing comparison.
The state has recorded a revenue deficit of ₹36,942 crore.
₹49,134 crore has been borrowed in just four months.
₹15,521 crore was borrowed in July alone.
64.76% of the budgeted borrowing has already been completed.
The question now is whether these figures represent development progress—or simply a “borrowing progress report.”
The government needs to explain to the public how it plans to balance development requirements with fiscal responsibility.
When Will the Borrowing Surge Be Brought Under Control?
The CAG figures for the first four months of the 2026–27 financial year have triggered a fresh debate over Andhra Pradesh’s financial management.
₹49,134 crore in borrowings and a ₹36,942 crore revenue deficit within just four months raise serious questions about the state’s fiscal health.
With 64.76% of the budgeted borrowing already utilised and ₹15,521 crore borrowed in July alone, the pace of borrowing deserves close scrutiny.
The people of Andhra Pradesh need more than borrowing records. They need higher revenue, fiscal discipline, productive investment and sustainable development.
The key question now is how seriously the government responds to the warning signs reflected in these figures—and whether it can bring borrowing and the revenue deficit under control in the months ahead.
