Resource information
The main objective of this fiscal note
is to assist the Government of Andhra Pradesh (GoAP) in
meeting the challenges mentioned above. To this end, it
provides input into the state's rolling medium-term
fiscal framework exercise. The new Fiscal Responsibility and
Budget Management (FRBM) act requires that the government
will lay out in each financial year a medium-term fiscal
policy statement (together with three-year rolling targets
for key fiscal indicators) before the state legislature. In
addition, this fiscal note provides the needed analytical
underpinning for the Bank's ongoing development policy
lending program in the state. The remainder of this note is
organized as follows. The next section looks at the
state's performance in improving its fiscal balance.
Section three looks at the revenue performance of the state
with a particular emphasis on the newly implemented Value
Added Tax (VAT). The size and composition of expenditures is
analyzed next (section four) with a close examination of the
government's new priority expenditure on adding new
irrigation schemes. Section five briefly looks at the debt
and examines issues related to debt sustainability. Section
six concludes.
