A.P.’s public debt to reach ₹7.11 lakh crore in 2026–27; GSDP ratio steady at 36%

The public debt profile of Andhra Pradesh from the 2020-21 fiscal year through the 2026-27 budget estimates reflects a period of significant growth in absolute terms, while maintaining a relatively stable relationship with the Gross State Domestic Product (GSDP). 

Total public debt is estimated to reach ₹7,11,094 crore by the end of the 2026-27 fiscal year, up from ₹6,35,177 crore in the previous fiscal year. Despite this increase, the debt-to-GSDP ratio is projected to hold steady at 36 per cent, consistent with the levels maintained since 2024-25. 

In the 2020-21 fiscal year, the total public debt stood at ₹3,50,557 lakh crore, which represented 36 per cent of the GSDP. Over the subsequent two years, the debt grew to ₹3,78,087 lakh crore and ₹4,29,526 lakh crore, respectively, though its share of the GSDP actually dipped slightly to 33 per cent during this period.

Starting 2023-24, the debt burden began to climb again in value and as a percentage of the State’s economy, reaching ₹4,91,734 lakh crore or 35 per cent of GSDP.

According to the latest data and estimates provided by the CAG and DES, the public debt is projected to reach ₹5,68,623 lakh crore in 2024-25, ₹6,35,177 lakh crore in the 2025-26 Revised Estimates (RE), and finally ₹7,11,094 Rs lakh crore in 2026-27 Budget Estimates (BE).

Throughout this final three-year stretch, the public debt as a percentage share of GSDP is expected to remain constant at 36 per cent.

Addressing concerns over the debt, Finance Minister Payyavula Keshav said the previous YSRCP regime had borrowed at interest rates as high as 12.3 per cent. The present government has initiated debt restructuring measures, renegotiating loans worth ₹43,298 crore and securing annual savings of ₹327 crore. It now aims to renegotiate an additional ₹1.2 lakh crore in debt, potentially saving ₹1,658 crore annually.