What is This, Chandrababu? AP on Debt Spree, Borrowings Cross 5.64 Lakh Crore

Andhra Pradesh state is turning into a debt-laden state. Full credit goes to its CM aka CEO (often claims as CEO of AP) Chandrababu Naidu. In a staggering debt, AP borrowed a whopping Rs 73,000 crore - a significant increase in the state’s borrowings within a year of coming to power.

According to the latest Economic Survey report presented in the State Assembly, Andhra Pradesh’s total debt surged from ₹4,91,734 crore at the end of the 2023–24 financial year to ₹5,64,488 crore by the end of 2024–25—an increase of nearly ₹73,000 crore. Notably, market borrowings accounted for a major chunk, rising from ₹3,66,565 crore to ₹4,24,070 crore in the same period.

With the new financial year underway, the Naidu-led government continues to rely on heavy borrowing, even as its much-publicized “Super Six” promises remain in the early stages of implementation. To raise funds, the administration has been actively auctioning government securities and bonds, with a fresh round of auctions now in motion.

The latest borrowing plan involves raising ₹5,750 crore through the Reserve Bank of India (RBI). The government has proposed five stock issues, with values ranging from ₹1,000 crore to ₹1,400 crore. These securities will be auctioned via RBI’s e-Kuber platform on April 3, allowing both competitive and non-competitive bidding.

The tenure of these securities varies — one will mature in 16 years, another in 15 years, while the remaining three will have maturities of 8, 9, and 12 years, respectively. Open for both institutional and individual investors, these bonds continue to add to the state’s mounting financial obligations.

As Andhra Pradesh navigates its fiscal challenges, the Naidu government’s borrowing pattern raises critical questions about the state’s financial strategy and long-term sustainability. Several economic experts are accusing the TDP-led coalition administration of leading the state towards insolvency.