Lok Sabha Question No. 1628 (UNSTARRED), answered on 2023-07-31
Subject: Current Debt Percentage of Andhra Pradesh
Ministry: FINANCE
Asked by: Kinjarapu Ram Mohan Naidu

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION No. 1628

TO BE ANSWERED ON MONDAY, July 31, 2023/ Sravana 9, 1945 (Saka)

## CURRENT DEBT PERCENTAGE OF ANDHRA PRADESH

1628.  SHRI RAM MOHAN NAIDU KINJARAPU

Will the Minister of FINANCE be pleased to state:

- (a) the current debt percentage of Andhra Pradesh, classified on a year-wise basis since the bifurcation;
- (b) the  amount  released  by  the  Central  Government  to  the  State  Government  of  Andhra Pradesh after the bifurcation;
- (c) the reasons for the delay in releasing the bifurcation dues to Andhra Pradesh, spanning a period of nine years; and
- (d) the measures taken or likely to be taken by the Central Government to hold the Andhra Pradesh Government accountable for its spending in relation to the released funds?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

- (a):    The  year-wise  'Total  Outstanding  Liabilities'  as  percentage  of  GSDP  of  the  State  of Andhra Pradesh are provided in the Table as below:

| Year                                                  |   2014-15 |   2015-16 |   2016-17 |   2017-18 |   2018-19 |   2019-20 | 2020-21 2021-22   |   2022-23 (RE) |   2023-24 (BE) |
|-------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-------------------|----------------|----------------|
| 'Total Outstanding Liabilities' as percentage of GSDP |     28.33 |     28.77 |     29.41 |     28.46 |     29.47 |     31.24 | 34.33 31.00       |          33.29 |          32.95 |

Source: State Finances Audit Reports for the year ended 31 March, 2019, for the year ended 31 March 2020 and for  the  year  ended  31  March  2021  of  the  Comptroller  and  Auditor  General  of  India  (CAG),  and  Budget Documents: 2023-24 of the State of Andhra Pradesh.

- (b):  The  Union  Government  provides  resources  to  States  including  the  State  of  Andhra Pradesh through Ministries/Departments under the heads Tax Devolution, Grants-in-Aid and

Loans  and  Advances.  Item-wise  details  of  'Transfers  of  Resources  to  the  State  of  Andhra Pradesh' since 2014-15 to 2023-24 are provided in Table as below:

(Rs. in crore)

| Item                       | 2014-15   | 2015-16   | 2016-17   | 2017-18   | 2018-19   | 2019-20   | 2020-21   | 2021-22   | 2022-23 (RE)   | 2023-24 (BE)   |
|----------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|----------------|----------------|
| Tax Devolution             | 15,299    | 21,894    | 26,264    | 29,001    | 32,787    | 28,242    | 24,460    | 35,386    | 38,177         | 41,338         |
| Grants-in- Aid from GoI    | 21,779    | 21,927    | 23,346    | 22,761    | 19,457    | 21,876    | 31,872    | 39,170    | 47,371         | 46,835         |
| Loan and Advances from GoI | 697       | 685       | 814       | 946       | 1,990     | 2,030     | 4,563     | 4,896     | 5,500          | 6,522          |

Source: State Finances Audit Reports for the year ended 31 March, 2019, for the year ended 31 March 2020 and for  the  year  ended  31  March  2021  of  the  Comptroller  and  Auditor  General  of  India  (CAG),  and  Budget Documents: 2023-24 of the State of Andhra Pradesh.

(c)  &  (d):  The  Department  of  Expenditure,  Ministry  of  Finance  releases  Central  Finance Commission  recommended  grants-in  aid  to  States  the  State  of  Andhra  Pradesh  on  the recommendations of the Administrative Ministries concerned and grants-in aid to the State of Andhra Pradesh under the Andhra Pradesh Re-organization Act, 2014 based on recommendations  of  NITI  Aayog  subject  to  fulfillment  of  stipulated  conditions  associated with each component of grants-in-aid including utilization of released funds to the State of Andhra  Pradesh,  if  any.  There  is  no  such  pending  recommendation  from  any  Ministry regarding  release  of  grants-in-aid  to  the  State  of  Andhra  Pradesh.  Further,  the  State Government of Andhra Pradesh has enacted Fiscal Responsibility and Budget Management (FRBM)  Act.  Compliance  to  the  State  FRBM  Act  is  monitored  by  the  respective  State Legislatures.

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