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).
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.
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%).
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.
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 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-2/”>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.
Andhra Pradesh State Skill Development Corporation supported progressive institutions, colleges and universities with IT, & other Infrastructure-2/”>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.
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-2/”>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)
Further a detailed facts for Group I mains are avaited
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Andhra Pradesh is a state in the south-eastern region of India. It is the 10th largest state in India by area and the 13th largest by Population. The state is bordered by Telangana to the north, Odisha to the west, Chhattisgarh to the northwest, Karnataka to the south, and the Bay of Bengal to the east. The state capital is Amaravati.
Andhra Pradesh is a major agricultural state, with rice, Cotton, and tobacco being the major crops. The state is also home to a number of industries, including steel, cement, and textiles. Andhra Pradesh is a major tourist destination, with a number of historical and cultural sites.
The economy of Andhra Pradesh is growing at a rapid pace. The state’s GDP grew at a rate of 8.8% in 2018-19. The state’s economy is expected to grow at a rate of 9.2% in 2019-20.
The Growth of the Andhra Pradesh economy is being driven by a number of factors, including the state government’s focus on Infrastructure Development, the growth of the services sector, and the expansion of the Industrial Sector.
The state government has been investing heavily in infrastructure development, including roads, bridges, Airports, and power Plants. The state has also been working to improve the state’s education and healthcare systems.
The services sector is the fastest growing sector of the Andhra Pradesh economy. The sector is driven by the tourism, IT, and BPO sectors. The state government has been taking several measures to promote the services sector, including setting up IT parks, improving the state’s infrastructure, and promoting the state as a tourist destination.
The industrial sector is also growing rapidly in Andhra Pradesh. The sector is driven by the manufacturing, mining, and power sectors. The state government has been taking several measures to promote the industrial sector, including providing incentives to investors, setting up industrial parks, and improving the state’s infrastructure.
The growth of the Andhra Pradesh economy is creating jobs and improving the lives of the people of the state. The state government is committed to improving the lives of its people, and it is working hard to achieve this goal.
The following are some of the key economic updates on Andhra Pradesh for 2019:
- The state’s agriculture sector is the largest contributor to its economy, accounting for about 25% of its GDP. The sector is largely dependent on monsoon rains, and is vulnerable to Climate change. The state government has taken several measures to improve the agricultural sector, including providing subsidies for farmers, investing in irrigation infrastructure, and promoting the use of modern agricultural practices.
- The state’s industrial sector is growing rapidly, and is now the second largest contributor to its economy, accounting for about 20% of its GDP. The sector is driven by the manufacturing, mining, and power sectors. The state government has taken several measures to promote the industrial sector, including providing incentives to investors, setting up industrial parks, and improving the state’s infrastructure.
- The state’s services sector is the fastest growing sector of its economy, and is now the largest contributor to its GDP, accounting for about 55% of its GDP. The sector is driven by the tourism, IT, and BPO sectors. The state government has taken several measures to promote the services sector, including setting up IT parks, improving the state’s infrastructure, and promoting the state as a tourist destination.
- The state government has taken several measures to improve the state’s infrastructure, including investing in roads, bridges, airports, and power plants. The state has also taken steps to improve the state’s education and healthcare systems.
- The state government has taken several measures to improve the social development of its people, including providing subsidies for food, education, and healthcare. The state has also taken steps to improve the state’s law and order situation.
- The state government has taken several measures to improve the state’s governance, including decentralizing power, improving transparency, and fighting Corruption. The state has also taken steps to improve the state’s financial management.
These are just some of the key economic updates on Andhra Pradesh for 2019. The state is facing a number of challenges, but it is also making progress in a number of areas. The state government is committed to improving the lives of its people, and it is working hard to achieve this goal.
Q1. What is the current economic situation in Andhra Pradesh?
A1. The economic situation in Andhra Pradesh is improving, with the state’s GDP growing at a rate of 7.2% in 2018-19. The state is also attracting significant Investment, with a number of major projects being announced in recent years.
Q2. What are the key drivers of economic growth in Andhra Pradesh?
A2. The key drivers of economic growth in Andhra Pradesh are agriculture, manufacturing, and services. Agriculture is the largest sector of the state’s economy, accounting for over 20% of GDP. Manufacturing is also a major contributor to economic growth, accounting for over 15% of GDP. The services sector is the fastest growing sector of the state’s economy, accounting for over 60% of GDP.
Q3. What are the challenges facing the Andhra Pradesh economy?
A3. The key challenges facing the Andhra Pradesh economy are infrastructure, education, and healthcare. The state’s infrastructure is in need of significant investment, with a number of roads, bridges, and power plants in need of repair or replacement. The state’s education system is also in need of improvement, with a number of schools and colleges in need of funding and resources. The state’s healthcare system is also in need of improvement, with a number of hospitals and clinics in need of funding and resources.
Q4. What are the government’s plans to address the challenges facing the Andhra Pradesh economy?
A4. The government has a number of plans to address the challenges facing the Andhra Pradesh economy. The government plans to invest in infrastructure, education, and healthcare. The government also plans to attract investment to the state and create jobs.
Q5. What are the opportunities for businesses in Andhra Pradesh?
A5. There are a number of opportunities for businesses in Andhra Pradesh. The state has a large and growing population, a young workforce, and a low cost of doing business. The state is also home to a number of major industries, including agriculture, manufacturing, and services.
Q6. What are the risks for businesses in Andhra Pradesh?
A6. The key risks for businesses in Andhra Pradesh are infrastructure, education, and healthcare. The state’s infrastructure is in need of significant investment, with a number of roads, bridges, and power plants in need of repair or replacement. The state’s education system is also in need of improvement, with a number of schools and colleges in need of funding and resources. The state’s healthcare system is also in need of improvement, with a number of hospitals and clinics in need of funding and resources.
Q7. What are the government’s plans to mitigate the risks facing businesses in Andhra Pradesh?
A7. The government has a number of plans to mitigate the risks facing businesses in Andhra Pradesh. The government plans to invest in infrastructure, education, and healthcare. The government also plans to provide incentives to businesses to invest in the state.
Q8. What are the prospects for the Andhra Pradesh economy in the future?
A8. The prospects for the Andhra Pradesh economy are positive. The state has a number of strengths, including a large and growing population, a young workforce, and a low cost of doing business. The state is also home to a number of major industries, including agriculture, manufacturing, and services. The government has a number of plans to address the challenges facing the state’s economy, including investing in infrastructure, education, and healthcare. The government also plans to attract investment to the state and create jobs.
Which of the following is not a major economic sector in Andhra Pradesh?
(A) Agriculture
(B) Industry
(C) Services
(D) TourismThe state’s economy is expected to grow at a rate of _____ in 2019-20.
(A) 6%
(B) 7%
(C) 8%
(D) 9%The state’s agriculture sector is expected to grow at a rate of _____ in 2019-20.
(A) 3%
(B) 4%
(C) 5%
(D) 6%The state’s industry sector is expected to grow at a rate of _____ in 2019-20.
(A) 7%
(B) 8%
(C) 9%
(D) 10%The state’s services sector is expected to grow at a rate of _____ in 2019-20.
(A) 11%
(B) 12%
(C) 13%
(D) 14%The state’s per capita income is expected to reach _____ in 2019-20.
(A) Rs. 1 lakh
(B) Rs. 1.5 lakh
(C) Rs. 2 lakh
(D) Rs. 2.5 lakhThe state’s Unemployment rate is expected to be _____ in 2019-20.
(A) 5%
(B) 6%
(C) 7%
(D) 8%The state’s fiscal deficit is expected to be _____ in 2019-20.
(A) 3% of GDP
(B) 4% of GDP
(C) 5% of GDP
(D) 6% of GDPThe state’s debt-to-GDP ratio is expected to be _____ in 2019-20.
(A) 20%
(B) 25%
(C) 30%
(D) 35%The state’s Inflation rate is expected to be _____ in 2019-20.
(A) 3%
(B) 4%
(C) 5%
(D) 6%The state’s exports are expected to grow at a rate of _____ in 2019-20.
(A) 10%
(B) 12%
(C) 14%
(D) 16%The state’s imports are expected to grow at a rate of _____ in 2019-20.
(A) 8%
(B) 10%
(C) 12%
(D) 14%The state’s Current Account deficit is expected to be _____ in 2019-20.
(A) 1% of GDP
(B) 2% of GDP
(C) 3% of GDP
(D) 4% of GDPThe state’s Foreign Exchange reserves are expected to be _____ in 2019-20.
(A) $30 billion
(B) $40 billion
(C) $50 billion
(D) $60 billionThe state’s fiscal deficit is expected to be financed by _____ in 2019-20.
(A) Borrowings
(B) Disinvestment
(C) Tax revenue
(D) Non-tax revenueThe state’s debt-to-GDP ratio is expected to be reduced by _____ in 2019-20.
(A) 1%
(B) 2%
(C) 3%
(D) 4%The state’s inflation rate is expected to be brought down to _____ in 2019-20.
(A) 2%
(B) 3%
(C) 4%
(D) 5%The state’s exports are expected to reach _____ in 2019-20.
(A) $10 billion
(B) $15 billion
(C) $