Explain the problems encountered till now in bifurcation of assets of institutions mentioned in Schedule…

Question

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.

Ghissu Editorial · Accepted Answer

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.

**Introduction**

The Andhra Pradesh⟦3⟧⟦2⟧⟦1⟧ Reorganisation Act, 2014⟦4⟧, initiated bifurcation of assets in Schedule IX and X institutions, but persistent problems have affected governance, fiscal health, and institutional stability in both states. The division involved complex public sector undertakings and government bodies, making the process challenging and contentious.

**Problems and Causes**

2. **Fiscal Stress from Off-Budget Borrowings**: ==Andhra Pradesh’s off-budget borrowings reached ₹1,28,048 crore⟦5⟧ by March 2023==, worsening its fiscal deficit and limiting capital expenditure. This uneven liability distribution strained the state's financial health.  
3. **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.  
4. **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.

**Impact**

1. **Operational Disruptions in SPSEs**: Financial uncertainties reduced efficiency, affecting employees, investors, and public service delivery. Delays in administrative control transfer worsened governance gaps.  
2. **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.

**Way Forward**

1. **Joint Asset Management Authority**: A bilateral agency to oversee transparent valuation and asset transfer, ensuring timely resolution and reducing jurisdictional conflicts.  
2. **Robust Audits and Transparency**: Comprehensive audits and technology use to track assets and liabilities, improving fiscal transparency and accountability.

**Conclusion**

Addressing valuation disputes, fiscal opacity, and governance gaps is essential for institutional stability and economic growth post-bifurcation. Strengthening legal frameworks and cooperative mechanisms will help resolve lingering challenges.

Model answer

ఈ ప్రశ్నను ప్రాక్టీస్ చేయండి

ఆంధ్రప్రదేశ్ - విభజన మరియు దాని ప్రభావం8 questions

Ghissu