The Finance Minister of Andhra Pradesh, Mr. Payyavula Keshav, presented the Budget for the state for the financial year 2024-25 on November 11, 2024.
Budget Highlights
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The Gross State Domestic Product (GSDP) of Andhra Pradesh for 2024-25 (at current prices) is estimated at Rs 16.41 lakh crore, amounting to growth of 12.5% over 2023-24.
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Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 2,69,928 crore, an increase of 14% over the revised estimates of 2023-24. In addition, debt of Rs 24,499 crore will be repaid by the state.
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Receipts (excluding borrowings) for 2024-25 are estimated to be Rs 2,01,186 crore, an increase of 16% as compared to the revised estimates of 2023-24.
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Revenue deficit in 2024-25 is estimated to be 2.1% of GSDP (Rs 34,743 crore), lower than the revised estimates for 2023-24 (2.7% of GSDP).
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Fiscal deficit for 2024-25 is targeted at 4.2% of GSDP (Rs 68,743 crore). In 2023-24, as per the revised estimates, fiscal deficit is expected to be 4.3% of GSDP, higher than the budget estimate for 2023-24.
Policy Highlights
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Agriculture: The ‘Annadata Sukhibhava PMKISAN’ scheme has been introduced to provide investment support to eligible farmers.
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Housing: Under Housing for All, 25 lakh houses/ house pattas will be provided to economically weaker sections by 2029. Around nine lakh houses will be completed under PMAY.
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Labour: With the aim of increasing female workforce participation, free travel in public transport buses for women will be introduced. Financial assistance will be provided to traditional occupational groups to enhance their livelihoods through modern occupational techniques.
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Sports: A new sports policy will be introduced for the period 2024-29 to make sports accessible for all, nurture talent, build a sports ecosystem, and improve global participation.
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Andhra Pradesh’s Economy
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Figure 1: Growth in GSDP and sectors in Andhra Pradesh at constant prices (2011-12)
Note: Agriculture includes mining and quarrying; Manufacturing includes construction and electricity. These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation. |
Budget Estimates for 2024-25
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Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 2,69,928 crore. This is an increase of 14% over the revised estimate of 2023-24. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 2,01,186 crore and net borrowings of Rs 66,944 crore. Total receipts for 2024-25 (other than borrowings) are expected to register an increase of 16% over the revised estimates of 2023-24.
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Revenue deficit in 2024-25 is estimated to be 2.1% of GSDP (Rs 34,743 crore), lower than the revised estimates for 2023-24 (2.7% of GSDP). Fiscal deficit for 2024-25 is targeted at 4.2% of GSDP (Rs 68,743 crore), as compared to 4.3% of GSDP at the revised estimate stage in 2023-24.
Table 1: Budget 2024-25 - Key figures (in Rs crore)
|
Items |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
|
Total Expenditure |
2,25,842 |
2,79,279 |
2,53,557 |
-9.2% |
2,94,427 |
16.1% |
|
(-) Repayment of debt |
15,570 |
18,411 |
17,046 |
-7.4% |
24,499 |
43.7% |
|
Net Expenditure (E) |
2,10,272 |
2,60,868 |
2,36,511 |
-9.3% |
2,69,928 |
14.1% |
|
Total Receipts |
2,25,749 |
2,78,302 |
2,50,000 |
-10.2% |
2,92,629 |
17.1% |
|
(-) Borrowings |
67,985 |
72,022 |
76,209 |
5.8% |
91,443 |
20.0% |
|
Net Receipts (R) |
1,57,764 |
2,06,280 |
1,73,791 |
-15.8% |
2,01,186 |
15.8% |
|
Fiscal Deficit (E-R) |
52,508 |
54,588 |
62,720 |
14.9% |
68,743 |
9.6% |
|
as % of GSDP |
4.0% |
3.8% |
4.3% |
|
4.2% |
|
|
Revenue Deficit |
43,487 |
22,317 |
38,683 |
73.3% |
34,743 |
-10.2% |
|
as % of GSDP |
3.3% |
1.5% |
2.7% |
|
2.1% |
|
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Primary Deficit |
27,016 |
25,914 |
33,238 |
28.3% |
39,947 |
20.2% |
|
as % of GSDP |
2.1% |
1.8% |
2.3% |
|
2.4% |
|
|
GSDP |
13,17,564 |
14,49,607 |
14,58,719 |
0.6% |
16,40,581 |
12.5% |
Note: BE is Budget Estimates; RE is Revised Estimates. Fiscal deficit figures have not been adjusted for loans provided by Centre for capital expenditure. Primary deficit figures may not match those provided in budget due to difference in interest payments in annual financial statement and budget at a glance.
Sources: Annual Financial Statement, Andhra Pradesh Budget 2024-25; PRS.
Expenditure in 2024-25
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Table 2: Expenditure budget 2024-25 (in Rs crore)
|
Items |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
|
Revenue Expenditure |
2,01,256 |
2,28,541 |
2,12,450 |
-7% |
2,35,917 |
11% |
|
Capital Outlay |
7,244 |
31,061 |
23,330 |
-25% |
32,713 |
40% |
|
Loans given by the state |
1,773 |
1,266 |
731 |
-42% |
1,298 |
78% |
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Net Expenditure |
2,10,272 |
2,60,868 |
2,36,511 |
-9% |
2,69,928 |
14% |
Sources: Annual Financial Statement, Andhra Pradesh Budget 2024-25; PRS.
Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of salaries, pensions, and interest. A larger proportion of budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay. In 2024-25, Andhra Pradesh is estimated to spend Rs 50,604 crore on pension and interest payments, which is 25% of its estimated revenue receipts. This comprises spending on pension (11% of revenue receipts), and interest payments (14%). In 2022-23, 30% of revenue receipts were spent on pension and interest payments.
Table 3: Committed Expenditure in 2024-25 (in Rs crore)
|
Committed Expenditure |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
|
Salaries |
NA |
NA |
NA |
- |
NA |
- |
|
Pension |
22,584 |
21,166 |
21,696 |
3% |
21,808 |
1% |
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Interest payment |
25,492 |
28,674 |
29,481 |
3% |
28,796 |
-2% |
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Total Committed Expenditure |
- |
- |
- |
- |
- |
- |
Sources: Annual Financial Statement, Andhra Pradesh Budget 2024-25; PRS.
Sector-wise expenditure: The sectors listed below account for 68% of the total expenditure on sectors by the state in 2024-25. A comparison of Andhra Pradesh’s expenditure on key sectors with that by other states is shown in Annexure 1.
Table 4: Sector-wise expenditure under Andhra Pradesh Budget 2024-25 (in Rs crore)
|
Sector |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
Demand Provisions |
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Welfare of SC, ST, OBC, and Minorities |
22,531 |
50,992 |
36,185 |
47,277 |
31% |
|
|
Education, Sports, Arts, and Culture |
26,158 |
32,658 |
31,400 |
33,111 |
5% |
|
|
Health and Family Welfare |
11,488 |
16,207 |
15,106 |
18,732 |
24% |
|
|
Rural Development |
12,194 |
16,159 |
14,147 |
15,899 |
12% |
|
|
Irrigation and Flood Control |
5,053 |
10,969 |
6,802 |
15,237 |
124% |
|
|
Agriculture and Allied Activities |
11,272 |
13,961 |
10,022 |
12,514 |
25% |
|
|
Social Welfare and Nutrition |
13,401 |
11,230 |
5,957 |
11,899 |
100% |
|
|
Urban Development |
6,185 |
8,996 |
8,633 |
11,168 |
29% |
|
|
Transport |
5,083 |
8,679 |
6,105 |
8,035 |
32% |
|
|
Police |
6,622 |
7,631 |
7,248 |
7,874 |
9% |
|
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% of total expenditure on all sectors |
58% |
68% |
60% |
68% |
|
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Sources: Annual Financial Statement, Andhra Pradesh Budget 2024-25; PRS.
Receipts in 2024-25
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Total revenue receipts for 2024-25 are estimated to be Rs 2,01,174 crore, an increase of 16% over the revised estimates of 2023-24. Of this, Rs 1,20,365 crore (60%) will be raised by the state through its own resources, and Rs 80,809 crore (40%) will come from the centre. Resources from the centre will be in the form of state’s share in central taxes (25% of revenue receipts) and grants (15% of revenue receipts).
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Devolution: In 2024-25, state’s share in central taxes is estimated at Rs 50,475 crore, an increase of 10% over the revised estimates of 2023-24.
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Grants from the centre in 2024-25 are estimated at Rs 30,334 crore, a decrease of 13% from the revised estimates for 2023-24.
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State’s own tax revenue: Andhra Pradesh’s total own tax revenue is estimated to be Rs 1,09,789 crore in 2024-25, an increase of 28% over the revised estimate of 2023-24. Own tax revenue as a percentage of GSDP is estimated at 6.7% in 2024-25, higher than the revised estimates for 2023-24 (5.9%). As per the actual figures for 2022-23, the state’s own tax revenue as a percentage of GSDP was 5.9%.
Table 5: Break-up of the state government’s receipts (in Rs crore)
|
Items |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 2023-24 to RE 2023-24 |
2024-25 Budgeted |
% change from RE 2023-24 to BE 2024-25 |
|
State's Own Tax |
78,026 |
1,02,599 |
85,922 |
-16% |
1,09,789 |
28% |
|
State's Own Non-Tax |
5,417 |
15,400 |
7,432 |
-52% |
10,576 |
42% |
|
Share in Central Taxes |
38,177 |
41,391 |
45,711 |
10% |
50,475 |
10% |
|
Grants-in-aid from Centre |
36,149 |
46,835 |
34,702 |
-26% |
30,334 |
-13% |
|
Revenue Receipts |
1,57,768 |
2,06,224 |
1,73,767 |
-16% |
2,01,174 |
16% |
|
Non-debt Capital Receipts |
-4 |
56 |
24 |
-57% |
12 |
-50% |
|
Net Receipts |
1,57,764 |
2,06,280 |
1,73,791 |
-15.8% |
2,01,186 |
16% |
BE is Budget Estimates; RE is Revised Estimates.
Sources: Annual Financial Statement, Andhra Pradesh Budget 2024-25; PRS.
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Table 6: Major sources of state’s own-tax revenue (in Rs crore)
|
Head |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
|
State GST |
27,981 |
34,249 |
31,130 |
-9% |
37,489 |
20% |
|
Sales Tax/ VAT |
8,004 |
25,402 |
18,475 |
-27% |
24,500 |
33% |
|
Stamps Duty and Registration Fees |
8,022 |
12,000 |
9,542 |
-20% |
13,500 |
41% |
|
Taxes on Vehicles |
4,320 |
7,000 |
4,557 |
-35% |
5,203 |
14% |
|
State Excise |
14,798 |
18,000 |
15,998 |
-11% |
25,597 |
60% |
|
Land Revenue |
110 |
58 |
52 |
-9% |
58 |
10% |
|
Taxes and Duties on Electricity |
4,243 |
5,096 |
5,528 |
8% |
2,648 |
-52% |
Sources: Annual Financial Statement and Revenue Budget, Andhra Pradesh Budget 2024-25; PRS.
Deficits, Debt, and FRBM Targets for 2024-25
The Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.
Revenue deficit: It is the difference of revenue expenditure and revenue receipts. A revenue deficit implies that the government needs to borrow to finance those expenses which do not increase its assets or reduces its liabilities. The budget estimates a revenue deficit of Rs 34,743 crore (or 2.1% of the GSDP) in 2024-25.
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Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government and leads to an increase in total liabilities. In 2024-25, the fiscal deficit is estimated to be 4.2% of GSDP. For 2024-25, the central government has permitted fiscal deficit of up to 3.5% of GSDP to states, of which 0.5% of GSDP will be available only upon carrying out certain power sector reforms. As per the revised estimates, in 2023-24, the fiscal deficit of the state is expected to be 4.3% of GSDP. This is higher than the budget estimate. In 2022-23, as per the actuals, fiscal deficit was 4% of the GSDP. |
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Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings at the end of a financial year, it also includes any liabilities on public account. At the end of 2024-25, the outstanding liabilities are estimated to be 34.1% of GSDP, higher than the revised estimates for 2023-24 (33.7% of GSDP).
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Figure 3: Fiscal and Revenue Deficit (as % of GSDP) Note: RE is Revised Estimates; BE is budget estimates. |
Figure 4: Outstanding Liabilities (as % of GSDP) Note: *Figures for 2025-26 and 2026-27 are projections; RE is Revised Estimates; BE is budget estimates. |
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Outstanding Government Guarantees: Outstanding liabilities of states do not include a few other liabilities that are contingent in nature, which states may have to honour in certain cases. State governments guarantee the borrowings of State Public Sector Enterprises (SPSEs) from financial institutions. At the end of 2023-24, the state’s outstanding guarantee is estimated to be Rs 1,54,797 crore, which is 11% of Andhra Pradesh’s GSDP in 2023-24.
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Annexure 1: Comparison of states’ expenditure on key sectors
The graphs below compare Andhra Pradesh’s expenditure in 2024-25 on six key sectors as a proportion of its total expenditure on all sectors. The average for a sector indicates the average expenditure in that sector by 31 states (including Andhra Pradesh) as per their budget estimates of 2023-24.[1]
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Education: Andhra Pradesh has allocated 12.3% of its expenditure on education in 2024-25. This is lower than the average allocation for education by states in 2023-24 (14.7%).
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Health: Andhra Pradesh has allocated 7% of its total expenditure towards health, which is higher than the average allocation for health by states (6.2%).
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Rural development: Andhra Pradesh has allocated 5.9% of its expenditure on rural development. This is higher than the average allocation for rural development by states (5%).
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Urban development: Andhra Pradesh has allocated 4.2% of its expenditure towards urban development. This is higher than the average allocation towards urban development by states (3.4%).
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Agriculture: Andhra Pradesh has allocated 4.7% of its total expenditure towards agriculture, which is lower than the average expenditure on agriculture by states (5.9%).
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Energy: Andhra Pradesh has allocated 2.8% of its total expenditure towards energy, which is lower than the average allocation by states (4.7%).
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Note: 2022-23, 2023-24 (BE), 2023-24 (RE), and 2024-25 (BE) figures are for Andhra Pradesh.
Sources: Annual Financial Statement, Andhra Pradesh Budget 2024-25; various state budgets; PRS.
Annexure 2: Comparison of 2022-23 Budget Estimates and Actuals
The following tables compare the actuals of 2022-23 with budget estimates for that year.
Table 7: Overview of Receipts and Expenditure (in Rs crore)
|
Particular |
2022-23 BE |
2022-23 Actuals |
% change from BE to Actuals |
|
Net Receipts (1+2) |
1,92,271 |
1,57,764 |
-18% |
|
1. Revenue Receipts (a+b+c+d) |
1,91,225 |
1,57,768 |
-17% |
|
a. Own Tax Revenue |
91,050 |
78,026 |
-14% |
|
b. Own Non-Tax Revenue |
11,093 |
5,417 |
-51% |
|
c. Share in central taxes |
33,050 |
38,177 |
16% |
|
d. Grants-in-aid from the Centre |
56,033 |
36,149 |
-35% |
|
Of which GST compensation grants |
3,800 |
4,570 |
20% |
|
2. Non-Debt Capital Receipts |
37 |
-4 |
-100% |
|
3. Borrowings |
64,816 |
67,985 |
5% |
|
Of which GST compensation loan |
2,500 |
0 |
-100% |
|
Net Expenditure (4+5+6) |
2,39,986 |
2,10,272 |
-12% |
|
4. Revenue Expenditure |
2,08,261 |
2,01,256 |
-3% |
|
5. Capital Outlay |
30,680 |
7,244 |
-76% |
|
6. Loans and Advances |
1,046 |
1,773 |
70% |
|
7. Debt Repayment |
16,270 |
15,570 |
-4% |
|
Revenue Deficit |
17,036 |
43,487 |
155% |
|
Revenue Deficit (as % of GSDP) |
1.3% |
3.3% |
160% |
|
Fiscal Deficit |
47,716 |
52,508 |
10% |
|
Fiscal Deficit (as % of GSDP) |
3.6% |
4.0% |
12% |
Source: Andhra Pradesh Budget Documents of various years; PRS.
Table 8: Key Components of State's Own Tax Revenue
|
Tax Source/Head |
2022-23 BE |
2022-23 Actuals |
% change from BE to Actuals |
|
Taxes and Duties on Electricity |
1,011 |
4,243 |
320% |
|
Land Revenue |
48 |
110 |
129% |
|
Taxes on Vehicles |
6,000 |
4,320 |
-28% |
|
State GST |
29,025 |
27,981 |
-4% |
|
Sales Tax/ VAT |
28,481 |
18,004 |
-37% |
|
Stamps Duty and Registration Fees |
9,500 |
8,022 |
-16% |
Source: Andhra Pradesh Budget Documents of various years; PRS.
Table 9: Allocation towards Key Sectors
|
Sector |
2022-23 BE |
2022-23 Actuals |
% change from BE to Actuals |
|
Energy |
9,452 |
18,301 |
94% |
|
Transport |
8,597 |
5,083 |
-41% |
|
of which Roads and Bridges |
4,429 |
1,778 |
-60% |
|
Housing |
4,806 |
8,359 |
74% |
|
Water Supply and Sanitation |
2,281 |
-225 |
-110% |
|
Irrigation and Flood Control |
10,541 |
5,053 |
-52% |
|
Urban Development |
8,495 |
6,185 |
-27% |
|
Agriculture and Allied Activities |
13,640 |
11,272 |
-17% |
|
Social Welfare and Nutrition |
10,976 |
13,401 |
22% |
|
Rural Development |
16,040 |
12,194 |
-24% |
|
Health and Family Welfare |
15,707 |
11,488 |
-27% |
|
Welfare of SC, ST, OBC, and Minorities |
45,927 |
22,531 |
-51% |
|
Police |
7,034 |
6,622 |
-6% |
|
Education, Sports, Arts, and Culture |
30,385 |
26,158 |
-14% |
Source: Andhra Pradesh Budget Documents of various years; PRS.
[1] The 31 states include the Union Territories of Delhi, Jammu and Kashmir, and Puducherry.