Explain the pattern of resource mobilisation for the public sector in the 5-Year Plans of Andhra Pradesh in the recent decade.
In short
Andhra Pradesh has mobilised public sector plan resources from own tax revenue, non-tax revenue, central transfers, borrowings and public enterprise surpluses, with committed spending squeezing capital investment. After the 2014 bifurcation and loss of Hyderabad, own tax revenue grew about 6% a year while central transfers reached ₹89,157 crore.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 261 words
Balanced Revenue Mix
Own tax revenue grew at a 6% CAGR (2018-23), with central transfers of ₹89,157 crore in 2022-23, reflecting balanced internal and external fiscal sources.
Borrowings and Fiscal Management
The state targets a fiscal deficit of 4.4%3 of GSDP for 2025-26, down from earlier years, but committed revenue expenditure at 51% restricts capital spending.
Sectoral Priorities and Schemes
The state prioritised agriculture, health, and education, with agriculture growing 10.7% in 2024-25 supported by Annadatta Sukhibhava; however, Andhra Pradesh Health Infrastructure4: Key Gaps and Human Resource Shortfalls (CAG 2024) report reveals persistent challenges.
Welfare and Infrastructure Projects
Large projects like the Polavaram project and welfare schemes such as NTR Bharosa pension scheme and Samagra Shiksha have directed resources towards inclusive growth and social infrastructure.
Post-Bifurcation Realignment
Loss of Hyderabad’s revenue base led to increased own tax revenue share and demands for Special Category Status, supported by Andhra Pradesh CAG Audit Reveals ₹1,806 Crore Revenue Impact in Tax and Land Departments (2021-22).
Decentralised Resource Use
Initiatives like Samagra Shiksha and digital services improved targeted resource allocation and public service delivery.
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Resource mobilization in Andhra Pradesh20 questions
Asked in 8 of 8 sittings since 2008
Most tested: Andhra Pradesh’s revenue sources, central transfers, and resource allocation/resource gap after bifurcation.
- 2025Explain the major sources of budgetary resources for Andhra Pradesh. What are the key challenges the state faces in mobilising adequate financial resources?
- 2023Briefly discuss the impact of bifurcation on the economy of Andhra Pradesh with respect to sectoral changes and resource gap. Provide a brief note on the steps taken by the Government of Andhra Pradesh to mobilize resources.
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Question from the official APPSC Group-I Mains 2008 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.