Archive · 18 Jan 2026
Andhra Pradesh and Telangana Face Fiscal Stress
Andhra Pradesh and Telangana, two states in India, are having money troubles.
They have spent almost all the money they are allowed to borrow, and their income from taxes is not growing as fast as before.
Both states are spending a lot on big projects like roads and dams, but they are also giving free things like bus rides and electricity to people.
This is making it hard for them to pay for other important things.
Experts say they should focus on making money from their strengths, like the IT sector in Telangana and the ports in Andhra Pradesh, instead of giving away free things.
They also suggest selling some empty lands and using cheaper loans to control their debt.
Andhra Pradesh and Telangana have exhausted their borrowing limits, with Telangana exceeding 100%.
Both states are facing slow tax income growth, particularly in GST collections.
Telangana has increased spending on big projects by 73.8%, while Andhra Pradesh has increased it by 103%.
Free schemes like free bus rides in Telangana and free electricity in Andhra Pradesh are contributing to fiscal stress.
Experts suggest focusing on strengths like IT and ports, selling empty lands, and using cheaper loans to manage debt.
- Who
- Andhra Pradesh and Telangana governments
- What
- Fiscal stress due to high borrowing and slow income growth
- When
- April to November 2025
- Where
- Andhra Pradesh and Telangana, India
- Why
- High spending on projects and free schemes, slow tax income growth
- States Involved
- Andhra Pradesh and Telangana
- Borrowing Limits
- Andhra Pradesh: 95.7%, Telangana: 107.5%
- GST Growth
- 9.2% (vs 17% last year)
- Project Spending Increase
- Telangana: 73.8%, Andhra Pradesh: 103%
- Free Schemes
- Telangana: Free bus rides, Andhra Pradesh: Free electricity
- IT Sector Growth
- Telangana: 12%
- Port Cargo Growth
- Andhra Pradesh: 15%
- Total State Income Growth
- 7%