Andhra pradesh: Economic updates-2019- Must for Groups Prelims and Mains

Andhra pradesh: Economic updates-2019

Gross State Domestic Product 

The Gross State Domestic Product of Andhra Pradesh for 2018-19 (at current prices) is approximately Rs 8,70,326 This is 10% higher than the revised estimate for 2017-18.

Total receipts

Total receipts (excluding borrowings) for 2018-19 are estimated to be Rs 1,57,599 crore, an increase of 25.4% as compared to the revised estimates of 2017-18. In 2017-18, total receipts (excluding borrowings) fell short of the budgeted estimate by Rs 1,328 crore.

Total expenditure

Total expenditure for 2018-19 is estimated to be Rs 1,91,064 crore, a 19.5% increase over the revised estimates of 2017-18. In 2017-18, there was an increase of Rs 2,823 crore (1.8%) in expenditure over the budget estimates.

Revenue surplus

Revenue surplus for the next financial year is targeted at Rs 5,235 crore, or 0.6% of the Gross State Domestic Product (GSDP). Fiscal deficit is targeted at Rs 24,205 crore (2.8% of GSDP).

Revenue deficit

It is the excess of revenue expenditure over revenue receipts.  A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets.

The budget estimates a revenue surplus of Rs 5,235 crore (or 0.6% of GSDP) in 2018-19.  This implies that revenue receipts are expected to be higher than the revenue expenditure, resulting in a surplus.  The estimate indicates that the state is expected to meet the target of eliminating revenue deficit, as prescribed by the 14th Finance Commission.

Fiscal deficit

It is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the government and leads to an increase in total liabilities.  In 2018-19, fiscal deficit is estimated to be Rs 24,205 crore, which is 2.8% of the GSDP.  The estimate is within the 3% limit prescribed by the 14th Finance Commission.  The Finance Commission had recommended that this limit may be relaxed to a maximum of 3.5% if states are able to contain their debt and interest payments to certain specified levels.

Education

Andhra Pradesh has allocated 14.8% of its total budget on education in 2018-19.  This is lower than the average expenditure allocated to education by 18 other states (using 2017-18 BE).

Between 2016-17 and 2018-19, there is a gradual increase in the spending on education from 13.2% to 14.8%.

Rural development

Andhra Pradesh has allocated 6.7% of its expenditure on rural development.  This is higher than the average (5.6%) of the 18 other states.

In 2017-18, spending on rural development was estimated to account for 8.7% of the total budgeted expenditure. However, there was a substantial fall in expenditure at the revised stage (5.9%).

Health

Andhra Pradesh has allocated 4.9% of its total expenditure on health, which is marginally higher than the average expenditure of 18 other states.  Further, the overall trend in spending on health has been constant.  Between 2016-17 and 2018-19, the state spent between 4.5%-5% of its total budget on health.

Agriculture

The state has allocated 4.7% of its total budget towards agriculture and allied activities.  This is lower than the allocations of 18 other states (6.4%).  Further, this is also a sharp drop in spending on agriculture from 6.1% in 2016-17 within the state.

The total revenue receipts

total revenue receipts for 2018-19 are estimated to be Rs 1,55,507 crore, an increase of 26.2% over the revised estimates of 2017-18. Of this, Rs 70,882 crore will be raised by the state through its own resources (46% of the revenue receipts), and Rs 84,626 crore will be devolved by the centre in the form of grants and the state’s share in taxes (54% of the revenue receipts).

Non Tax Revenue

Andhra Pradesh has estimated to generate Rs 5,347 crore through non-tax sources in 2018-19. This is an increase of 34% over the revised estimates of 2017-18.  In 2017-18, the estimated revenue from fell short by 21.7% at the revised stage.  This was due to a fall in collections from the sale of red sandalwood.

Capital expenditure

Capital expenditure for 2018-19 is proposed to be Rs 40,792 crore, which is an increase of 25.3% over the revised estimates of 2017-18. This includes expenditure which affects the assets and liabilities of the state, and leads to creation of assets (such as bridges and hospitals), and repayment of loans, among others.

Revenue expenditure

Revenue expenditure for 2018-19 is proposed to be Rs 1,50,272 crore, which is an increase of 18.1% over revised estimates of 2017-18. This expenditure includes payment of salaries, maintenance, etc.  In 2018-19, Andhra Pradesh is expected to spend Rs 25,928 crore on servicing its debt (i.e., Rs 10,851 crore on repaying loans, and Rs 15,077 crore on interest payments. This is 11.4% higher than the revised estimates of 2017-18.

Youth development

A Youth Policy will be formulated for the implementation of youth empowerment and advancement programmes. Rs 1,000 crore is allocated for this purpose. ( Budget 2018)

Food grains production

The total production of food grains in 2017-18 is estimated at 157.59 lakh tonnes while it was 149.16 lakh tonnes in 2016-17 showing an increase of 5.65%. The cropping intensity for the year 2016-17 is 1.25. The number of holdings has increased from 72.16 lakh in 2005-06 to 76.21 lakh in 2010-11. (Socio economic survey 2018)

Horticulture production

Andhra Pradesh stands at 1st position in productivity for Chillies, Cocoa, Lime, Oil Palm, Papaya and Tomato, 2nd in Cashew, Mango and Sweet Orange in India. A.P. Ranks 1st in area and production of fruits and spices and 2nd in Micro Irrigation area coverage. 15.92 Lakh Ha. area is under Horticulture with production of 268.57 lakhs MTs.  (Socio economic survey 2018)

Exports from the state

The Exports from the state for the year 2016-17 have recorded Rs. 80559.87Cr. During the year 2017-18 (upto November 2017), the state has recorded Rs.50404.75 crore. The Major exports from the state are Drugs & Pharmaceuticals, Marine, Agriculture and Agro based products, Handicrafts, Minerals and Mineral products and Software products. (Socio economic survey 2018)

Health and Family Welfare Maternal health care

child health care and family welfare services are provided through 7458 Sub-centers, 1147 Primary Health Centers, 193 Community Health Centers, 31 Area Hospitals, 8 District Hospitals, 3 Mother and Child Health Centres and 11 Teaching hospitals. Apart from these, 73 Urban Family Welfare Centers, 48 Post Partum Units and 222 (e)-UPHCs fall under the purview of the State.

The estimated Crude Birth rate, Crude Death rate and Infant Mortality Rates for the year, 2016 in the state are 16.4, 6.8 and 34 respectively while it is 20.4, 6.4 and 34 for All India (as per Sample Registration System, bulletin September 2017). 26 Special New Born Care Units (SNCUs), 18 Nutrition Rehabilitation Centres, 95 Newborn Stabilization Units (NBSUs) and 789 New Born Care Corners (NBCCs) are established in the state to reduce Infant Mortality Rate (IMR) by strengthening neo-natal care services. (Socio economic survey 2018)

Housing

Under Weaker Section Housing Programme 59,00,175 houses have been completed up since inception of the scheme in 1993-94 till Dec, 2017 comprising 53,76,663 in rural areas and 5,23,512 in urban areas. APSHCL has taken up 2.00 lakh houses under NTR Rural housing programme dovetailing with MGNREGS. Out of which 1,16,477 Houses were completed by Dec, 2017.

APSHCL has taken up 72,885 lakhs with a unit cost of Rs.2,00,000/- houses under NTR Rural housing (Gramin) programme dovetailing with PMAY-G and MGNREGS with a project cost of Rs.1457.70 crore. Out of which 17,329 Houses were completed by Dec, 2017. 48,058 houses were sanctioned in 2017-18 with a project cost of 961.16 crores.

Skill Development

Andhra Pradesh State Skill Development Corporation supported progressive institutions, colleges and universities with IT, & other infrastructure to strengthen training delivery and ensure its reach to remote areas 3.28 lakh were trained and 7,693 got placements.

Under DDUGKY programme SEEDAP is the State implementing agency targeted to train 57,966 of which 32033 were trained and 17665 got placements. Under PMKVY 2.0, APSSDC is fixed a target with a state mandate of 64,000 candidates to be trained in a period of 2016 –20.

Poverty

The poverty ratios for rural and urban areas of united Andhra Pradesh were 10.96% and 5.81% respectively and combined ratio stands at 9.20%. The corresponding figures for All India during the same period were 25.70%, 13.70% for rural and urban areas and the combined was 21.92%. The poverty in the State is on a decline and currently stands at 9.2%.

Prices

Consumer Price Indices for Industrial Workers increased by 1.23% and 2.12% in the State and All India level respectively during the period from April, 2017 to Oct, 2017 over the corresponding period of previous year. Wholesale Price Index (WPI) serves as an important determinant in formulation of trade, fiscal and other economic policies by the government. WPI (Base Year 2004-05) for All Commodities increased from 113.2 in Apr 2017 to 115.7 in Dec 2017.

Livestock and Fisheries

The State stands 2nd in Egg production (1582.74 Crores – next to TN 1668.82 Cr), 4th in Meat production and 5th in Milk production.

AP ranks 1st in total fish and shrimp production and contributes more than 70% of cultured shrimp produced in the country. AP is the largest shrimp exporter in the country. Fisheries sector is supporting employment to 14.5 lakh persons and contributing significantly to the State’s economy. The state government has initiated plans to make Andhra Pradesh the ‘Aqua Hub’ of the World. 27.49 lakh tonnes of fish and prawn were produced in the state in 2017-18 (upto December 2017) as against the target of 33.84 lakh tones. (Socio economic survey 2018)

 

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