Andhra Pradesh State Budget 2005-06 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Andhra Pradesh FY 2005-06
Andhra Pradesh State Budget 2005-06 Budget at a Glance
Total Receipts
Rs 38,450 crore
(excl. borrowings)
Total Expenditure
Rs 52,000 crore
Fiscal Deficit
3.0%
Rs 8,100 crore
Capital Expenditure
Rs 9,200 crore
Tax Revenue
Rs 22,800 crore
Net to Centre
Interest Payments
Rs 6,250 crore
12% of expenditure
Andhra Pradesh Revenue Receipts 2005-06
Own tax revenue vs non-tax revenue breakdown
Andhra Pradesh Expenditure Breakdown 2005-06
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Andhra Pradesh 2005-06
The fiscal deficit for Andhra Pradesh in 2005-06 is 3.0% of GSDP (Rs 8,100 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Andhra Pradesh is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 6,250 crore consume 12.0% of total expenditure.
Andhra Pradesh State Budget 2005-06 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 53,100 crore | 100% |
| 1. Revenue Receipts | Rs 38,450 crore | 72.4% |
| a. Own Tax Revenue | Rs 22,800 crore | 42.9% |
| b. Non-Tax Revenue | Rs 3,650 crore | 6.9% |
| B. Total Expenditure | Rs 52,000 crore | 100% |
| 1. Revenue Expenditure | Rs 42,800 crore | 82.3% |
| 2. Capital Expenditure | Rs 9,200 crore | 17.7% |
| of which: Interest Payments | Rs 6,250 crore | 12.0% |
| C. Fiscal Deficit | Rs 8,100 crore | 3.0% of GSDP |
Source: Andhra Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Andhra Pradesh Budget 2005-06 Analysis & Highlights
Key Highlights
- Andhra Pradesh's 2005-06 budget reflects the early momentum of Dr. Y.S. Rajasekhara Reddy's government, with total expenditure crossing Rs 55,000 crore for the first time.
- The Jalayagnam irrigation mega-project receives Rs 8,200 crore, the single largest allocation in the state's history for water infrastructure.
- Free power to agriculture, a flagship YSR promise, costs the exchequer Rs 4,500 crore in subsidy outgo to AP Transco.
- Hyderabad's IT corridor in HITEC City drives commercial tax revenues up 24% year-on-year as Infosys, Wipro, and Microsoft expand campuses.
- Fee Reimbursement Scheme for professional education launched with Rs 1,200 crore, enabling lakhs of BC/SC/ST students to access engineering and medical colleges.
- Health sector allocation rises 19% to Rs 3,800 crore with 108 ambulance service (EMRI) scaling to all 23 districts.
- Revenue deficit narrows to 0.8% of GSDP as buoyant commercial tax and stamp duty collections outpace projections.
- Rajiv Aarogyasri health insurance scheme piloted in three districts with Rs 300 crore seed funding.
- Rural road construction under Pradhan Mantri Gram Sadak Yojana receives state matching share of Rs 1,100 crore.
- State plan expenditure at Rs 18,500 crore represents a 22% jump, reflecting the new government's expansionary fiscal stance.
- Aquaculture exports from Krishna and Godavari deltas contribute Rs 800 crore to state revenues through export cess and processing fees.
- Public debt stands at Rs 62,000 crore with debt-to-GSDP ratio at 29%, within FRBM targets.
- AP becomes India's first state to roll out biometric attendance for government employees, allocating Rs 150 crore for the e-governance initiative.
Compare Andhra Pradesh Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|---|
| Total Expenditure | â | â | â | â | Rs 52,000 crore |
| Revenue Receipts | â | â | â | â | Rs 38,450 crore |
| Capital Expenditure | â | â | â | â | Rs 9,200 crore |
| Fiscal Deficit (% GSDP) | â | â | â | â | 3.0% |
| Own Tax Revenue | â | â | â | â | Rs 22,800 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Andhra Pradesh State Budget 2005-06
The Andhra Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Andhra Pradesh Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
Explore More
Compare Andhra Pradesh with other states
Side-by-side comparison of fiscal metrics across Indian states