Public Finance Scene in Andhra Pradesh: Performance and Policies

Andhra Pradesh, one of the southern states in India, is blessed with rich natural resources, especially in the agriculture sector. It is the fifth largest state in the country covering a geographical area of 274.40 lakh hectares. It has a population of about 7.56 crore making it the fifth populous state in the country. It is also one of the leading states in India to have implemented the economic reforms process aggressively, which was initiated by the central government in early 1990s. Despite this, there has been no significant improvement in the growth rate of GSDP as it fluctuated throughout the 1990s. The finances of the state have deteriorated over the last two decades, as it experienced a general trend of fluctuating fiscal imbalances. This was more so because of the revenue and expenditure policies adopted by the government of Andhra Pradesh were such that there was surplus in its revenue account from 1980 to 1983, but subsequently, it experienced huge fiscal and revenue deficits. The huge budget deficit affected the capital expenditure which resulted in slow economic growth. The worsening fiscal situation of the state is raising doubts whether the state is heading for a fiscal crisis in the years to come. It is against this backdrop, that the original book "Public Finance Scene in Andhra Pradesh – Performance & Policies" analyzes the macroeconomic performance of Andhra Pradesh throughout the 1980s, 1990s and early 2000s, the structure and trends in finances of Andhra Pradesh with special reference to management of fiscal deficit, revenue augmentation and expenditure management and problem of ever increasing public debt, and its impact on economic growth.