Andhra Pradesh spent ₹1,05,039 crore on human resource costs in 2025-26, an amount equal to more than 95% of the state’s own revenue, according to a State Finance Department progress report presented by Chief Minister N Chandrababu Naidu. The figure covers salaries, pensions and other employee-related payments across the state’s public workforce.
The state directly and indirectly employs between 10 lakh and 12 lakh people across public sector undertakings, corporations and secretariats at the state, district, village and ward levels, and supports about 3.59 lakh pensioners, according to official data. The whitepaper presented the HR bill as a central pressure point on the state’s finances.
According to the report, HR expenditure consumed 95% of the state’s own revenue in 2025-26, after touching 123% during 2020-21. The document said average HR spending stood at 87% of State Own Revenue between 2014 and 2019, climbed to 110% between 2019 and 2024, and moderated to 96% under the present government. The Chief Minister devoted a dedicated section of the financial whitepaper to what the government described as the state’s high HR expenditure.
The report set Andhra Pradesh’s spending against other southern states, noting that Karnataka spends under a third of its state own revenue on salaries, Telangana about 44%, Tamil Nadu 49% and Kerala 68%. It also flagged that the state’s aggregate debt and liabilities rose sharply over the preceding five years, even as the per capita income gap with Telangana widened.
