AP CM N Chandrababu Naidu
The focus on AP Andhra Pradesh government on fiscal financial management marked by `corrective’ budgetary measures adopted after the NDA government came to power two years ago generated interest cost savings of ₹8,269 crore through the renegotiation of 370 loans worth ₹1.5 lakh crore, while creating fiscal space to expand welfare spending, revive Central schemes and raise capital expenditure.According to a Progress Report 2024-26 released by Chief Minister N Chandrababu Naidu in Amaravati on Tuesday, the NDA government had adopted a corrective Budget to recover from the financial stress inherited from the previous regime, while aligning public finances with the Swarna Andhra Vision 2047. The government had cleared ₹30,849 crore of long-pending employee-related dues, including gratuities, CPS contributions, provident fund liabilities, APGLI claims and medical reimbursements.In a major push to revive Central schemes, the State cleared ₹8,695 crore in pending dues, enabling the restoration of 86 Centrally sponsored schemes.Since June 2024, Andhra Pradesh has secured ₹29,890 crore in Central assistance and spent ₹45,138 crore, including the Central share, under these programmes. It also became one of the first States to implement the SNA-SPARSH payment mechanism, qualifying for an additional ₹250 crore under the SASCI incentive programme.While welfare remained a priority with over ₹1.49 lakh crore spent on welfare programmes during the past two years the government had also filled 30,607 posts, including 15,941 teacher vacancies through Mega DSC-2025 and 5,757 police constable posts, besides contractual and outsourcing appointments.Under the Zero Poverty P4 Initiative, the State identified 21 lakh “Bangaru Kutumbam” families, initiated assistance to 2.4 lakh families, mobilised 1.1 lakh Margadarsi volunteers and facilitated the adoption of 11 lakh families.The State government had also stepped up infrastructure spending, with average capital expenditure during the last two years rising to 1.5 times the average recorded during 2019-24, the report said. The capital investment would continue to increase in the coming years to support long-term economic growth, it added. PUBLIC DEBTOn public debt, the government said the debt-to-GSDP ratio had risen by only 2.37 percentage points after 2024 compared with an increase of 5.46 percentage points during 2019-24, despite inherited committed expenditure and pending liabilities. It said the ratio was expected to stabilise as the State economy expands. Andhra Pradesh received no revenue deficit grants in 2024-25, unlike the ₹50,991 crore received during 2019-24, when the grants intended for five years were exhausted within the first three years. The 16th Finance Commission has discontinued revenue deficit grants, making fiscal discipline and revenue mobilisation even more critical, it added. Published on August 4, 2026
