<h1>Debt sustainability concerns limit borrowing capacity and highlight severe fiscal health and investment shortfalls.</h1> Andhra Pradesh registers critical weaknesses in debt sustainability and overall fiscal health under the Niti Aayog Fiscal Health Index (2022-23), scoring at the bottom across quality of expenditure, revenue mobilisation, fiscal prudence, and debt index. A zero debt sustainability score indicates inability to service obligations, restricting lender willingness to provide credit. Concurrently, the state shows a low share of developmental resources devoted to capital expenditure with substantial declines in capital spending on social and economic services, contributing to persistent fiscal deficits and constrained development financing.