Both Andhra Pradesh and Telangana are facing mounting fiscal stress in the first quarter of the 2025-26 financial year, as highlighted by recent CAG reports. Revenues in both states have lagged behind projections, while borrowings have surged, with Telangana exhausting over a third of its annual borrowing limit in just three months. Opposition leader YS Jagan Mohan Reddy has criticized the current Andhra Pradesh government for poor fiscal management, citing worsening financial indicators and insufficient government expenditure in key areas. The situation is compounded by declining non-tax revenues and limited central grants, raising concerns about the states' ability to meet fiscal targets. These developments have sparked political debate and heightened scrutiny of public finance management in both Telugu states.
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