Explain the problems encountered till now in bifurcation of assets of institutions mentioned in Schedule IX and Schedule X of the Andhra Pradesh Reorganisation Act, 2014.
In short
Division of Schedule IX and X institutions has stalled over asset valuation, the 58.32:41.68 apportionment ratio, delayed transfer of control and headquarters concentrated in Hyderabad, leaving many cases unresolved a decade later. The Supreme Court's 2016 ruling that Schedule X assets go by location deepened Andhra Pradesh's losses.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 273 words
Fiscal Stress from Off-Budget Borrowings
Andhra Pradesh’s off-budget borrowings reached ₹1,28,048 crore5 by March 2023, worsening its fiscal deficit and limiting capital expenditure. This uneven liability distribution strained the state's financial health.
SPSE Financial Arrears
90 out of 103 Andhra Pradesh SPSEs had 342 arrear accounts ranging 1-17 years as of Sept 2023, reflecting governance gaps and poor financial management post-bifurcation.
Revenue Deficit and Fiscal Imbalance
Andhra Pradesh’s ₹22,317 crore revenue deficit in 2023-24 strained its ability to service debts and maintain institutions. The uneven distribution of revenue-generating assets contributed to this imbalance.
Operational Disruptions in SPSEs
Financial uncertainties reduced efficiency, affecting employees, investors, and public service delivery. Delays in administrative control transfer worsened governance gaps.
Legal and Administrative Conflicts
Prolonged disputes delayed policy implementation and undermined trust. The concentration of headquarters assets in Hyderabad, the ten-year common capital, added complexity to asset sharing.
Joint Asset Management Authority
A bilateral agency to oversee transparent valuation and asset transfer, ensuring timely resolution and reducing jurisdictional conflicts.
Robust Audits and Transparency
Comprehensive audits and technology use to track assets and liabilities, improving fiscal transparency and accountability.
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This chapter in the exam
Andhra Pradesh - Bifurcation and its Impact8 questions
Asked in 4 of 8 sittings since 2008
Most tested: Apportionment and unresolved implementation issues under the Andhra Pradesh Reorganisation Act, 2014.
- 2025Examine the impact of the loss of Hyderabad as the capital city on post-bifurcation Andhra Pradesh. How did this transition affect the state's administrative, economic, and socio-cultural landscape?
- 2025Discuss the vision behind building a new capital for Andhra Pradesh after the bifurcation in 2014. Critically assess the financial implications involved in the planning, development, and partial execution of Amaravati as the capital city.
All 8 questions, sorted by sub-topic, with model answers and practice.
Question from the official APPSC Group-I Mains 2017 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.