Andhra Pradesh State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Andhra Pradesh FY 2007-08
Andhra Pradesh State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 53,800 crore
+19.0%
Total Expenditure
Rs 71,400 crore
+18.0%
Fiscal Deficit
2.8%
Rs 10,200 crore
Capital Expenditure
Rs 13,200 crore
+20.0%
Tax Revenue
Rs 32,500 crore
+19.9%
Interest Payments
Rs 8,200 crore
11% of expenditure
Andhra Pradesh Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Andhra Pradesh Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Andhra Pradesh 2007-08
The fiscal deficit for Andhra Pradesh in 2007-08 is 2.8% of GSDP (Rs 10,200 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 8,200 crore consume 11.5% of total expenditure.
Andhra Pradesh State Budget 2007-08 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 74,000 crore | 100% |
| 1. Revenue Receipts | Rs 53,800 crore | 72.7% |
| a. Own Tax Revenue | Rs 32,500 crore | 43.9% |
| b. Non-Tax Revenue | Rs 4,700 crore | 6.4% |
| B. Total Expenditure | Rs 71,400 crore | 100% |
| 1. Revenue Expenditure | Rs 58,200 crore | 81.5% |
| 2. Capital Expenditure | Rs 13,200 crore | 18.5% |
| of which: Interest Payments | Rs 8,200 crore | 11.5% |
| C. Fiscal Deficit | Rs 10,200 crore | 2.8% of GSDP |
Source: Andhra Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Andhra Pradesh Budget 2007-08 Analysis & Highlights
Key Highlights
- Total expenditure reaches Rs 74,000 crore, crossing the Rs 70,000 crore mark for the first time in AP's history.
- Jalayagnam receives Rs 14,500 crore as Polavaram project faces escalating cost estimates, revised upward to Rs 16,000 crore total.
- Global financial turbulence begins affecting Hyderabad's IT export growth, which slows to 15% from the previous year's 28%.
- Fee Reimbursement costs spiral to Rs 4,200 crore as 800 new engineering colleges receive affiliation across the state.
- Farm loan waiver under central scheme covers 35 lakh AP farmers, providing Rs 8,500 crore in debt relief.
- Power sector reforms stall as AP Genco and Transco accumulated losses cross Rs 12,000 crore.
- National highway construction in the state receives Rs 2,800 crore under NHDP phases.
- Rural employment guarantee spending reaches Rs 3,500 crore as AP becomes the largest NREGA spender among states.
- Health spending rises to Rs 5,200 crore with Aarogyasri claims crossing 10 lakh procedures in a single year.
- Fiscal deficit moderates to 3.2% of GSDP as farm loan waiver reduces fresh agricultural lending stress.
- AP Special Economic Zone policy attracts Rs 15,000 crore in committed industrial investments.
- State announces Rs 1,000 crore Rajiv Yuva Kiranalu youth employment program targeting 10 lakh jobs.
Compare Andhra Pradesh Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | â | â | â | Rs 60,500 crore | Rs 71,400 crore |
| Revenue Receipts | â | â | â | Rs 45,200 crore | Rs 53,800 crore |
| Capital Expenditure | â | â | â | Rs 11,000 crore | Rs 13,200 crore |
| Fiscal Deficit (% GSDP) | â | â | â | 2.8% | 2.8% |
| Own Tax Revenue | â | â | â | Rs 27,100 crore | Rs 32,500 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Andhra Pradesh State Budget 2007-08
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.
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Compare Andhra Pradesh with other states
Side-by-side comparison of fiscal metrics across Indian states