Andhra Pradesh spent Rs 1.05 lakh crore on salaries, pensions and other human resource-related expenditure in 2025-26, with employee costs estimated at about 95 per cent of the state’s own revenue, according to the state government’s latest assessment of its finances.
The expenditure covers regular government employees, pensioners, contract and outsourced workers, grant-in-aid employees, local-body staff and workers associated with government corporations. The state estimates that payments are made to around 1.3 million beneficiaries each month.
Regular government employees account for 67 per cent of beneficiaries, while pensioners make up another 25 per cent.
The government has described the high employee-cost burden as a longstanding fiscal challenge. It has also compared Andhra Pradesh’s HR expenditure-to-own-revenue ratio with neighbouring states, where the corresponding figures are lower.
According to the state’s assessment, the ratio averaged 110 per cent between 2019 and 2024, before declining to around 96 per cent over the past two financial years.
The figures have, however, been disputed by employee organisations and the Opposition, which have questioned the methodology used to calculate the expenditure. Employee representatives have cited Comptroller and Auditor General data suggesting that salaries and pensions accounted for 59.36 per cent of own revenue and 47.64 per cent of total revenue receipts in 2025-26.
The debate comes as the state continues to face demands from government employees over pay revision and pending dues, while also seeking to fund infrastructure and development projects.
The competing assessments highlight the challenge for Andhra Pradesh in balancing workforce expenditure and employee commitments with its broader development spending.
