Do you consider that Public Sector is getting adequate financial support from the Government of Andhra Pradesh in XI Five Year Plan?
In short
The public sector received considerable but not fully adequate financial support from the Andhra Pradesh government in the XI Plan, as needs in power and irrigation outpaced funds. Revenue deficits, committed spending and weak SPSE governance limited support, even as Polavaram and Jalayagnam irrigation got dedicated funding.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 250 words
Focused Capital Investment and Schemes
The government prioritized capital expenditure on Jalayagnam irrigation projects like Polavaram and on power sector utilities, alongside welfare4 schemes such as Rajiv Aarogyasri, demonstrating targeted support for infrastructure and welfare. These initiatives aimed to boost agrarian productivity and social security, reflecting a balanced approach to development.
External Financing and Budgetary Constraints
To meet investment needs, Andhra Pradesh sought external funds from agencies like the World Bank and Asian Development Bank; however, committed revenue expenditure and subsidies, especially in power, limited fiscal space. Additionally, the state's reliance on borrowings raised concerns about fiscal sustainability and constrained future Public Sector investments.
SPSEs’ Financial and Governance Challenges
State Public Sector Enterprises faced governance issues, arrears and delayed support, while underutilisation and diversion of funds weakened financial support effectiveness. These challenges impaired SPSEs’ operational efficiency and their ability to contribute meaningfully to the state economy.
Governance Reforms and Efficient Fund Use
Strengthening SPSE governance, and improving capital expenditure efficiency are vital for sustainable development. Diversifying revenue sources and promoting Public-Private Partnerships can further enhance fiscal space and project execution.
This model answer is indicative and the model can make mistakes; please verify key facts independently.
Practise this question
1Get the answer sheet
Sized for this question.
2Write your answer
Timed, by hand.
3Get it marked
Your score and what to fix.
This chapter in the exam
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.
All 20 questions, sorted by sub-topic, with model answers and practice.
Question from the official APPSC Group-I Mains 2011 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.