The Cyberabad Times

AP economy getting stronger

If first half-year financials are any indication, Andhra Pradesh’s (AP) economy is on a strong footing. Though the state has not utilised its overdraft facility from the Reserve Bank of India for the period under review, it has been able to contain non-Plan expenditure considerably. Recently, the government, for the first time, submitted a review on the receipts and expenditure for the first-half to the Assembly, as required under Section 11(1) of AP Fiscal Responsibility and Budget Management (FRBM) Act. On fiscal deficit parameter, the state reported 1.49% for the half-year period against (-) 3.72% budgeted for 2005-06. AP had committed to bring down the fiscal deficit to 3% of GSDP by 2008-09 (originally targeted for 2009-10), in the recent amendment to the Act. It may be noted here that the statement shows a 100% increase in subsidies during the first half year, up from Rs 634.53 crore to Rs 1,281.44 crore. This is one reason why the government wants to reduce the percentage on subsidy by venturing into conditional or targeted subsidies.

AP economy getting stronger

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