CAG Report Highlights Andhra Pradesh's Financial Deficits and Borrowings in 2024-25

The Comptroller and Auditor General (CAG) report for 2024-25 reveals Andhra Pradesh faced a severe financial crisis, with revenue and fiscal deficits exceeding the Fiscal Responsibility and Budget Management (FRBM) targets at 3.75% and 5.05% of GSDP respectively. The state borrowed Rs 1.72 lakh crore through special drawing facilities, ways and means advances, and overdrafts, mainly for daily expenses, increasing interest payments and crowding out capital expenditure. The Telugu Desam Party-led government cited legacy debt from the previous administration as a contributing factor.