Fiscal Shortfalls: Andhra Pradesh and Telangana Struggle to Meet Revenue Targets

With three months left in the financial year, both Andhra Pradesh and Telangana are struggling to meet their budgeted revenue targets. While revenues remain below expectations, borrowings have met projections, highlighting a concerning trend as both states navigate their financial challenges.

As the financial year approaches its end, Andhra Pradesh and Telangana find themselves grappling with revenue deficiencies. According to the Principal Accountant General, both states are falling short of their budgeted targets for total revenue receipts, though borrowings align with projections.

By the end of December 2024, Andhra Pradesh had recorded 69.36% of budgeted receipts, totaling Rs 1.87 lakh crore. The state aimed for Rs 2.70 lakh crore in receipts for the 2024-25 financial year. Tax revenues stood just above Rs 98,000 crore against an estimated Rs 1.60 lakh crore, whereas borrowings exceeded estimates, reaching nearly Rs 74,000 crore.

Similarly, Telangana posted 58.57% of its projected revenues at Rs 1.61 lakh crore by December's end. It had budgeted for Rs 2.74 lakh crore for the financial period. Tax revenues hovered over Rs 1.02 lakh crore, short of the Rs 1.64 lakh crore goal, while borrowings touched over Rs 48,000 crore, nearing the Rs 49,255.41 crore target.

(With inputs from agencies.)