Wed Nov 27 19:10:00 UTC 2024: ## Andhra Pradesh Budget Reveals Grim Financial Picture, Delays on Key Poll Promises

**Vijayawada, Andhra Pradesh –** Andhra Pradesh presented its annual budget for 2024-25 on November 11th, revealing a concerning financial state and forcing the NDA government to grapple with significant challenges. Finance Minister Payyavula Keshav unveiled a budget totaling ₹2.94 lakh crore, but the document highlights a substantial fiscal strain and potential delays in fulfilling key election promises.

The budget reveals a heavily stressed state financial system, with a total debt of ₹1,39,567.14 crore – 32.17% of the Gross State Domestic Product (GSDP), rising to 43.80% when off-budget borrowings are included. This exceeds the Fiscal Responsibility and Budget Management limits. The state projects a fiscal deficit of 4.3%, higher than the Finance Commission’s recommendation of 3%. The minister admitted that restoring the state’s financial health will be a difficult task, requiring a focus on debt reduction.

Several major election promises, including a monthly pension for women (₹1,500), the creation of 20 lakh jobs, a monthly unemployment allowance (₹3,000), and free bus travel for women, appear to have been postponed, with no allocated funds. Only “Deepam 2.0” (₹2,684 crore) and “Talliki vandanam” (₹6,500 crore), a yearly allowance for schoolchildren, received funding. The estimated annual cost of implementing all major unfunded promises is ₹74,000 crore.

Despite the financial constraints, the budget allocates ₹85,577 crore for welfare schemes targeting women, children, minorities, and Scheduled Castes and Tribes. The government plans to raise ₹71,000 crore through open market borrowings. Capital expenditure is estimated at ₹32,712.84 crore, while revenue expenditure is estimated at ₹2,35,916.99 crore. A Comptroller and Auditor General (CAG) report further underscores the growing liabilities, posing risks to debt stabilization and sustainability.

The government secured ₹15,000 crore in funding from multilateral agencies for the Amaravati capital project’s infrastructure, but this comes in the form of a loan, adding to future financial burdens. Minister Keshav stated the government aims to “restart the financial wheels of the state,” but a clear roadmap for achieving this remains unclear. The budget reveals a significant reduction in spending on populist schemes implemented by the previous YSRCP government, with a suggested shift towards infrastructure development. The state’s substantial committed expenditure for salaries, pensions, loan repayments, and interest payments further complicates the financial situation.

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