This state spends 95% of its total earnings on salaries and pensions; its coffers are running dry

Andhra Pradesh: One state in the country is currently grappling with a financial crisis—Andhra Pradesh. According to reports, 95 percent of the state's revenue is being spent solely on salaries and pensions, depleting its treasury.

Andhra Pradesh Expenditure on Salaries and Pensions: The cost of salaries and pensions for government employees is becoming a major issue for Andhra Pradesh. A state government report indicates that in the 2025-26 fiscal year, Andhra Pradesh spent over 95% of its own revenue on employee salaries and pensions. During this period, approximately ₹1.05 lakh crore was spent on expenses related to the workforce.

Around 10 to 12 lakh people are directly or indirectly associated with government departments, state-owned companies, corporations, and various other levels of administration in Andhra Pradesh. Additionally, there are approximately 3.59 lakh pensioners in the state. The expenditure incurred on all of them places a heavy burden on the state budget.

Higher expenditure compared to other states