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Andhra Pradesh State Budget 2009-10 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Andhra Pradesh FY 2009-10

Andhra Pradesh State Budget 2009-10 Budget at a Glance

Total Receipts

Rs 75,200 crore

+22.3%

Total Expenditure

Rs 1.03 lakh crore

+18.3%

Fiscal Deficit

3.6%

Rs 19,100 crore

Capital Expenditure

Rs 18,800 crore

+13.9%

Tax Revenue

Rs 42,500 crore

+17.4%

Interest Payments

Rs 10,900 crore

11% of expenditure

Andhra Pradesh Revenue Receipts 2009-10

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 42,500 crore (87.3%)
Non-Tax Revenue
Rs 6,200 crore (12.7%)

Andhra Pradesh Expenditure Breakdown 2009-10

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 81.8%
Capital Expenditure 18.2%

Fiscal Deficit as % of GSDP — Andhra Pradesh 2009-10

The fiscal deficit for Andhra Pradesh in 2009-10 is 3.6% of GSDP (Rs 19,100 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's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 10,900 crore consume 10.6% of total expenditure.

Andhra Pradesh State Budget 2009-10 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 1.06 lakh crore100%
1. Revenue ReceiptsRs 75,200 crore71.1%
a. Own Tax RevenueRs 42,500 crore40.2%
b. Non-Tax RevenueRs 6,200 crore5.9%
B. Total ExpenditureRs 1.03 lakh crore100%
1. Revenue ExpenditureRs 84,500 crore81.8%
2. Capital ExpenditureRs 18,800 crore18.2%
of which: Interest PaymentsRs 10,900 crore10.6%
C. Fiscal DeficitRs 19,100 crore3.6% of GSDP

Source: Andhra Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.

Andhra Pradesh Budget 2009-10 Analysis & Highlights

Key Highlights

  • Andhra Pradesh's economy begins recovering from the global crisis with GSDP growth rebounding to 6.8%.
  • Total expenditure rises to Rs 92,000 crore as the government front-loads spending ahead of anticipated recovery.
  • Tragic death of CM Y.S. Rajasekhara Reddy in a helicopter crash in September 2009 creates political upheaval and fiscal uncertainty.
  • Jalayagnam allocation restored to Rs 13,000 crore as Polavaram receives Rs 3,000 crore with national project status demand intensified.
  • Hyderabad IT sector shows early recovery signs with export growth turning positive at 5% after the previous year's contraction.
  • Devastating floods in Krishna and Guntur districts cause Rs 8,000 crore in damage — the worst flooding in 100 years.
  • Flood relief and rehabilitation consumes Rs 4,500 crore in emergency supplementary spending.
  • Fee Reimbursement Scheme costs cross Rs 5,800 crore with 12 lakh students benefiting across 2,600 colleges.
  • Telangana agitation intensifies with KCR's hunger strike, creating political instability that affects investment sentiment.
  • Stamp duty collections partially recover to Rs 3,600 crore as property market stabilizes at lower valuations.
  • Power sector debt crosses Rs 18,000 crore as free farm power continues without tariff rationalization.
  • Revenue deficit narrows marginally to 1.8% of GSDP as economic recovery boosts tax collections.
  • State plan expenditure at Rs 24,000 crore maintains counter-cyclical fiscal stance despite political disruption.

Compare Andhra Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2005-062006-072007-082008-092009-10
Total Expenditure———Rs 87,300 croreRs 1.03 lakh crore
Revenue Receipts———Rs 61,500 croreRs 75,200 crore
Capital Expenditure———Rs 16,500 croreRs 18,800 crore
Fiscal Deficit (% GSDP)———3.5%3.6%
Own Tax Revenue———Rs 36,200 croreRs 42,500 crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Andhra Pradesh State Budget 2009-10

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.

Compare Andhra Pradesh with other states

Side-by-side comparison of fiscal metrics across Indian states