Fiscal Crisis Deepens in Andhra Pradesh and Telangana: Revenues Plunge, Borrowings Soar

Both Andhra Pradesh and Telangana are facing severe financial stress in the first quarter of the fiscal year, with revenues lagging and borrowings surging, according to recent CAG reports. Opposition leader YS Jagan Mohan Reddy has raised alarms about Andhra Pradesh's worsening fiscal health, blaming poor fiscal management and declining non-tax revenues. Telangana, while showing some revenue growth, has already exhausted a significant portion of its annual borrowing limit, raising concerns about sustainability. The states are struggling with limited central grants and high expenditure on salaries, pensions, and interest payments. The situation has sparked political blame games and calls for urgent reforms to stabilize public finances.