1 week Ago By DC Correspondent
Vijayawada: Andhra Pradesh ranked 17th in the Fiscal Health Index (FHI) for the financial year 2022–23, as per the report released by NITI Aayog. The data for the index was sourced from the Comptroller and Auditor General, providing a comprehensive analysis of budgetary transactions across states for the period. Out of 18 states evaluated, Andhra Pradesh scored 20.
9 in the FHI. The state stood 15th in the quality of expenditure score, 16th in revenue mobilisation and fiscal prudence, and 12th in the debt index. The report highlighted a decline in capital expenditure in Andhra Pradesh since 2018–19, with an 84.
3 per cent decrease in social services and a 60.1 per cent decrease in economic activities. In 2022–23, capital expenditure accounted for only 3.
5 per cent of total expenditure and 4.4 per cent of total borrowings, falling short of budget estimates. Regarding revenue mobilisation, the state's own tax revenue witnessed a compound annual growth rate of -6 per cent from 2018–19 to 2022–23.
The ratio of the state's own tax revenue to total tax revenue saw moderate growth, increasing from 64 per cent in 2018–19 to 67 per cent in 2022–23. Meanwhile, non-tax revenue grew at an average annual rate of 4.3 per cent over the same period.
In terms of fiscal prudence, Andhra Pradesh has remained in revenue and fiscal deficits over the past five years. According to the AP Fiscal Responsibility and Budget Management Act, the state aimed to achieve specific fiscal targets, with the fiscal deficit to GSDP ratio in 2022–23 at 4 per cent, within the target of 4.5 per cent.
On debt sustainability, the state’s public debt increased at an average rate of 16.5 per cent between 2018–19 and 2022–23. Interest payments rose by 15 per cent in 2022–23 compared to 10 per cent in the previous year.
The ratio of interest payments to revenue receipts showed an upward trend from 2018–19 to 2020–21, with a slight decline in 2022–23 due to increased revenue receipts..
