The monthly loan data for Andhra Pradesh in 2025-26 tells a story that goes well beyond routine government financing. With total borrowings reaching ₹82,450 crore against a budgeted target of ₹79,227 crore, the state has not merely borrowed it has exceeded its own fiscal plan, compressed its remaining headroom, and continued a pattern of debt accumulation that independent auditors, economists, and the Comptroller and Auditor General of India have flagged with growing alarm.
The monthly data in the image captures only the direct government borrowings for 2025-26. The true scale is significantly larger, where the Government raised approximately ₹3.27 lakh crore in just 20 months comprising ₹81,082 crore in 2024-25 direct borrowings, ₹82,450 crore between April 2025 and March 2026, plus ₹89,026 crore through government-guaranteed loans by corporations, ₹11,850 crore through AP Beverages Corporation bonds, and ₹9,900 crore through State Development Loans.
Borrowed Time: AP’s ₹82,450 Crore Debt Trail in 2025-26
Four months breached ₹10,000 crore – May (₹14,000 Cr), August (₹10,000 Cr), January (₹12,300 Cr), and March (₹10,300 Cr). September saw the lowest borrowing at just ₹2,000 crore, while May was 7x higher at ₹14,000 crore. This kind of front-loading and back-loading of debt is consistent with what CAG flagged by August 2025 alone indicating AP had exhausted nearly 70% of its annual borrowing target in just the first five months, with borrowings of ₹55,901 crore almost matching revenue receipts of ₹61,578 crore for the same period.
AP is borrowing more than it budgeted, using most of it for revenue spending rather than investment, falling short of its own infrastructure targets, and relying on RBI emergency credit for almost the entire year.
The monthly loan chart for 2025-26 is not just a data table. Each bar especially the four that breach ₹10,000 crore, represents the widening gap between what the state earns and what it spends, bridged entirely by debt. Without a structural correction in revenue generation, expenditure prioritisation, and transparent accounting of off-budget liabilities, Andhra Pradesh risks not just fiscal stress but a full sovereign debt crisis at the state level that will take a generation to unwind.
