PNS | Vijayawada
In response to a query from a Lok Sabha member regarding the financial assessment of Andhra Pradesh, Union Finance Minister Nirmala Sitharaman made a statement highlighting the state’s efforts in enacting the Fiscal Responsibility and Budget Management (FRBM) Act. The act holds the State government accountable for ensuring fiscal prudence, stability, and transparency by progressively eliminating revenue deficit, reducing fiscal deficit, and managing debt responsibly in line with fiscal sustainability.
According to the Union Finance Minister, compliance with the Fiscal Responsibility and Budget Management (FRBM) Act is overseen by the State Legislature of Andhra Pradesh. The Department of Expenditure, under the Ministry of Finance, generally adheres to the fiscal limits recommended by the Finance Commission while granting approval for the states’ borrowings under Article 293(3) of the Indian Constitution.
The Reserve Bank of India’s report titled ‘State Finances: A Study of Budgets of 2022-23’ sheds light on the total outstanding liabilities of Andhra Pradesh as of different years. The figures indicate the state’s financial situation at the end of March for various years, as follows:
