Fiscal Crisis Deepens in Andhra Pradesh and Telangana as Revenues Lag and Borrowings Surge

Both Andhra Pradesh and Telangana are facing mounting fiscal stress, with recent data showing sluggish revenue growth and a sharp rise in government borrowings during the first quarter of the financial year. Opposition leader YS Jagan Mohan Reddy has raised alarms over Andhra Pradesh's deteriorating financial health, citing CAG reports that highlight low non-tax revenues and declining central grants. Telangana, while showing some revenue growth, has already exhausted a significant portion of its annual borrowing limit, raising concerns about its ability to meet fiscal targets. The situation is compounded by high government spending on interest payments, salaries, and pensions, leaving little room for development or welfare initiatives. The fiscal challenges in both states are prompting urgent calls for better financial management and reforms.