Publication: Fiscal and Debt Management in Andhra Pradesh (India) : An Update on the Reform Program
Loading...
Published
2006-05-24
ISSN
Date
2013-03-12
Author(s)
Editor(s)
Abstract
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.
Link to Data Set
Citation
“Swaroop, Vinaya; Dasgupta, Shatanjaya. 2006. Fiscal and Debt Management in Andhra Pradesh (India) : An Update on the Reform Program. © World Bank. http://hdl.handle.net/10986/12646 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Montenegro - Debt Sustainability Analysis(Washington, DC, 2007-02)This report assesses Montenegro's public and external debt sustainability under alternative scenarios. The baseline scenario assumes continued implementation of a macroeconomic stabilization and structural reform program, while the low case scenario describes the alternative of a sluggish growth environment due to policy slippage/weak reform. In addition, other sensitivity tests are conducted in order to highlight the vulnerability of the baseline case to specific shocks. The report concludes that Montenegro's public debt would be highly sustainable if economic reforms continue at their current pace, and the 2007 fiscal policy is maintained over the coming years.Publication Indonesia Economic Quarterly, December 2010(Jakarta, 2010-12)The Indonesian economic quarterly reports on and synthesizes the past three months' key developments in Indonesia's economy. Its coverage ranges from the macro economy to financial markets to indicators of human welfare and development. It is intended for a wide audience, including policy makers, business leaders, and financial market participants, and the community of analysts and professionals engaged in Indonesia's evolving economy. The challenge for Indonesia is to maximize the opportunities that this brings, in terms of enhancing future growth and making investments that can improve the welfare of the entire population, while managing the associated risks. Strong capital inflows, particularly portfolio, have been seen across emerging markets, including Indonesia. These inflows are driven by yield differentials and the stronger growth prospects, and improved creditworthiness, of emerging economies relative to heavily indebted, higher-income economies. Further quantitative easing in the US has provided an additional, cyclical boost to this trend. Global commodity prices also picked up in recent months. In November, the US dollar price of non-energy commodities rose by 3.4 percent over the month with food and raw material prices up by 4.9 percent and 7.6 percent, respectively. The underlying drivers were strong growth in demand from emerging economies, particularly China, and also supply disruptions in the agriculture sector.Publication Mongolia Economic Retrospective 2008-2010(World Bank, 2010)Mongolia was one of the East Asian economies hardest hit by the global downturn, as copper prices collapsed and external demand fell. With the recovery in economic activity currently well underway, but the policy challenges highlighted by the crisis yet to be fully addressed, this economic retrospective examines the key economic, financial, and policy developments from mid 2008 to April 2010. Collapsing mineral prices and a steep drop in external demand due to the global downturn of 2008 and 2009 were the external shocks which were transmitted to Mongolia's economy. This shock exposed underlying weaknesses in the economic structure and policy environment. More generally, now is the time to put in place a strong policy framework to manage the upcoming mining boom and avoid the mistakes of the past. The looming mining boom brings the risks of "Dutch disease" effects and a return to the profligate populism of the past. Measures to address these risks include the recently adopted fiscal stability law that will help the country move away from the fiscal boom and bust cycles of the past; improvements to the budget process and the planning and management of public investments in order to more efficiently absorb the large projected increases in revenues; and appropriate policy frameworks to support future infrastructure investment. Implementing a targeted poverty benefit should also ensure the poor are protected from mining boom and busts in a fiscally sustainable manner. Finally, continued reforms in the mining sector will enhance incentives for new exploration and environmentally and socially sustainable development.Publication China Economic Update, June 2015(World Bank, Washington, DC, 2015-07-03)Chinas economic growth continues to moderate, in 2014 gross domestic product (GDP) expanded by 7.4 percent, within the governments indicative growth target of about 7.5 percent for the year, but sharply slower than the 10 percent annual growth rate china averaged for three consecutive decades. An orderly correction in real estate - reflecting policy efforts to reduce supply mismatches and tighten nonbank credit - continues to weigh on economic activity. Ongoing adjustments in real estate, a buildup of excess capacity, and decelerating export growth are affecting industrial activity. In contrast growth in services remained robust as composition of growth continues to improve.Publication Global Development Finance 2006 : The Development Potential of Surging Capital Flows, Volume 1. Review, Analysis, and Outlook(2006)Global Development Finance is the World Bank's annual review of global financial conditions facing developing countries. The current volume provides analysis of key trends and prospects, including coverage of capital originating from developing countries themselves. Robust global growth and a favorable financing environment provided the context for a record expansion of private capital flows to developing countries in 2005. Many low-income countries still have little or no access to international private capital, and instead depend largely on official finance from bilateral and multilateral creditors to support their development objectives. Capital flows are changing due to financial integration among developing countries, financial innovations, domestic debt markets, and the global role of the Euro. Net official flows continue to decline as official lending falls and there is more aid and debt relief for the poorest countries. To ensure economic stability, developing countries must manage capital flows with effective macroeconomic policies, prudent accumulation of reserves, careful management of oil-export revenues, and improvements in standards for the corporate sector.
Users also downloaded
Showing related downloaded files
Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Beyond Unicorns(Washington, DC: World Bank, 2021-07-28)Similar to many other countries around the world, the COVID-19 (coronavirus) pandemic has hit Indonesia hard. Latest estimates suggest that about 5.1 million people—equivalent to 2.4 percent of the working-age population—have lost their jobs, while an additional 24 million have had to work reduced hours due to the pandemic. As many as 50 percent of workers have experienced a reduction in earnings. The impact on living standards has been devastating, with more than 2.2 million Indonesians estimated to have been pushed into COVID-19-induced poverty in 2020. One unexpected silver lining from the crisis, however, has been the turbo-charged adoption of digital technologies. Businesses, both large and small, have flocked to digital technologies to try to ensure the continuity of their operations. School closures have forced students and teachers to adapt and explore digitally enabled remote learning options, including the adoption of a variety of EdTech solutions. HealthTech apps enabling remote consultations and the delivery of medicine have seen unprecedented growth in adoption rates. Confined at home due to mobility restrictions, Indonesians have switched to the internet for their entertainment and social needs, driving sharp growth in the usage of digital media (music and video streaming) and communications applications. With this pandemic-induced flight to digital expected to be permanent to a large extent, there is excitement about an even greater acceleration in what was already the fastest growing digital economy in Southeast Asia. But at the same time questions have also emerged about the possibility of the differential access to and adoption of digital technologies compounding existing inequalities. For a country that considers achieving balanced development one of its key priorities, this is an important new challenge.Publication Poverty and Equity Assessment for El Salvador 2024(Washington, DC: World Bank, 2024-12-12)This report proposes an agenda for building on gains to re-accelerate poverty reduction among Salvadorans. The last World Bank Poverty Assessment for El Salvador, from 2015, proposed two key policy recommendations: (a) effective pro-poor spending and (b) reduction of crime and violence through better access to jobs and education. Nine years later, the authorities have managed to achieve a substantial reduction in crime and violence and have indicated an intent to build on such progress to establish a path toward an El Salvador where shared prosperity is achievable. In this report, we propose a three pillar structure to address poverty and inequality reduction: jobs, services, and social protection, with a cross-cutting set of primary conditions that articulates this structure.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Western Balkans Regular Economic Report No.23, Spring 2023(Washington, DC: World Bank, 2023-06-16)The six countries of the Western Balkans have seen their resilience tested over the last three years. Growth in the Western Balkan economies started strong in early 2022, before moderating toward year-end, but the impact of major shocks, such as electricity and heating outages, has been less severe than expected. Inflation surged to a two-decade high in 2022 in almost all economies, and price pressures remain elevated in early 2023. Higher food and energy prices have affected low-income households especially severely, resulting in a much slower pace of poverty reduction in 2022 despite universal government support. In the medium term, the Western Balkans continues to have a positive outlook, but reforms are needed to rebuild buffers, accelerate the green transition, and to address key structural challenges. The ongoing energy crisis has highlighted the need to accelerate the green transition across Europe, including in the Western Balkans. A key starting point in this regard is to accelerate the move toward carbon pricing and to increase the use of environmental fiscal measures that incentivize households and firms to shift toward lower carbon intensity with respect to economic activity.