Mains Paper II · 2 Andhra Pradesh Economy · 2.8 State budget and public finance

2.8.2 AP's fiscal indicators and debt: deficits, debt–GSDP ratio and borrowing trends

AP's fiscal deficit rose to 5.11% of GSDP in 2024-25 (Accounts) and is budgeted to fall to 3.84% in 2026-27. Public debt holds at about 36% of GSDP, and market loans make up about three-quarters of the debt.

  • APPSC Group 2 · Mains Paper II
  • Advanced level
  • 7 min read
  • Full course

Key terms

  • fiscal deficit
  • revenue deficit
  • primary deficit
  • debt-GSDP ratio
  • FRBM Act 2005
  • market loans
  • open market borrowings
  • off-budget borrowings
  • APSDC
  • guarantees
  • Article 293
  • committed expenditure

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

Read the full note in the app. It is part of the APPSC Group 2 full course in Medha AI. Free in the app: the first chapter of each topic.

Read the full note in the app Andhra Pradesh Economy questions with answers

All State budget and public finance notes · APPSC Group 2 syllabus · APPSC G2 Prelims Mock 1 with answers · Start free

Medha AI writes its own notes and checks them against the sources listed. Medha AI is an independent preparation service. It is not affiliated with, endorsed by or connected to APPSC, TSPSC, MPSC, UPSC or any other commission or government body.