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The Governor of existing State of Andhra Pradesh may, at any time before the appointed day, authorise such expenditure from the Consolidated Fund of the State of Telangana as he deems necessary for any period not more than six months beginning with the appointed day pending the sanction of such expenditure by the Legislative Assembly of the State of Telangana:
Provided that the Governor of Telangana may, after the appointed day, authorise such further expenditure as he deems necessary from the Consolidated Fund of the State of Telangana for any period not extending beyond the said period of six months.
The reports of the Comptroller and Auditor-General of India referred to inclause (2) of ARTICLE 151 relating to the accounts of the existing State of Andhra Pradesh in respect of any period prior to the appointed day shall be submitted to the Governor of each of the successor States of Andhra Pradesh and Telangana who shall cause them to be laid before the Legislature of that State.
(2) The President may by order––
(a) declare any expenditure incurred out of the Consolidated Fund of Andhra Pradesh on any service in respect of any period prior to the appointed day during the financial year or in respect of any earlier financial year in excess of the amount granted for that service and for that year as disclosed in the reports referred to in sub-section (1) to have been duly authorised; and
(b) provide for any action to be taken on any matter arising out of the said reports.
The award made by the Thirteenth Finance Commission to the existing State of Andhra Pradesh shall be apportioned between the successor States by the Central Government on the basis of Population ratio and other parameters:
Provided that on the appointed day, the President shall make a reference to the Fourteenth Finance Commission to take into account the Resources available to the successor
States and make separate Awards for each of the successor States.
(2) Notwithstanding anything in sub-section (1), the Central Government may, having regard to the resources available to the successor State of Andhra Pradesh, make appropriate grants and also ensure that adequate benefits and incentives in the form of special development package are given to the backward areas of that State.
(3) The Central Government shall, while considering the special development package for the successor State of Andhra Pradesh, provide adequate incentives, in particular for Rayalaseema and north coastal regions of that State.
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State governments are responsible for a wide range of Services, including Education, healthcare, transportation, and public safety. These services are funded by a variety of sources, including taxes, federal funding, and borrowing.
Tax revenue is the largest source of funding for state governments. The Types of Taxes that are levied and the rates at which they are applied vary from state to state. Some states rely heavily on income taxes, while others rely more on sales taxes or property taxes.
Federal funding is another important source of revenue for state governments. The federal government provides funding for a variety of programs and services, such as Medicaid, highway construction, and education. The amount of federal funding that a state receives depends on a variety of factors, including the state’s population and its economic condition.
State governments can also borrow Money to finance capital projects or to cover operating expenses. The cost of borrowing money can vary depending on interest rates and other factors. States typically issue Bonds to borrow money. Bonds are loans that are repaid over time with interest.
The performance of State Government investments can also have a significant impact on state government finances. States invest their money in a variety of assets, such as stocks, bonds, and real estate. The value of these assets can fluctuate, which can affect the amount of money that a state has available to spend.
The economic conditions in a state can also have a significant impact on state government finances. A Recession can lead to a decrease in tax revenue and an increase in Unemployment, which can put a strain on state government finances. Conversely, an economic boom can lead to an increase in tax revenue and a decrease in unemployment, which can provide state governments with more resources.
The demographics of a state can also have a significant impact on state government finances. An aging population can lead to an increase in demand for healthcare and other services, which can put a strain on state government finances. Conversely, a young population can lead to a decrease in demand for these services, which can provide state governments with more resources.
Political decisions can also have a significant impact on state government finances. A decision to increase spending on education or healthcare can lead to an increase in state government debt. Conversely, a decision to decrease spending on these services can lead to a decrease in state government debt.
The specific implications to financial resources of state government will vary depending on the state and the specific circumstances. However, the factors discussed above are some of the most important factors that can affect state government finances.
Here are some frequently asked questions and short answers about the implications to financial resources of state government:
- What are the implications to financial resources of state government?
The implications to financial resources of state government are significant. State governments are facing a number of challenges, including rising costs, declining revenues, and increasing demands for services. These challenges are putting a strain on state budgets and making it difficult for state governments to provide essential services.
- What are some of the rising costs that state governments are facing?
Some of the rising costs that state governments are facing include healthcare, education, and pensions. Healthcare costs are rising due to an aging population and the increasing cost of medical care. Education costs are rising due to the increasing cost of providing education, such as teacher salaries and school construction. Pension costs are rising due to the increasing number of state employees who are retiring and the increasing cost of providing pensions.
- What are some of the declining revenues that state governments are facing?
Some of the declining revenues that state governments are facing include income taxes, sales taxes, and property taxes. Income taxes are declining due to the decline in the number of people who are working and the decline in the amount of income that people are earning. Sales taxes are declining due to the decline in consumer spending. Property taxes are declining due to the decline in the value of property.
- What are some of the increasing demands for services that state governments are facing?
Some of the increasing demands for services that state governments are facing include healthcare, education, and public safety. Healthcare demand is increasing due to an aging population and the increasing prevalence of chronic diseases. Education demand is increasing due to the increasing number of children and the increasing demand for quality education. Public safety demand is increasing due to the increasing crime rate and the increasing demand for law enforcement.
- How are state governments responding to these challenges?
State governments are responding to these challenges in a number of ways, including cutting spending, raising taxes, and borrowing money. Cutting spending is difficult because it means reducing essential services, such as education and healthcare. Raising taxes is unpopular because it means people have less money to spend. Borrowing money is risky because it means state governments will have to pay back the money with interest, which will add to the state’s debt.
- What are the long-term implications of these challenges?
The long-term implications of these challenges are uncertain. If state governments are unable to address these challenges, it could lead to a decline in the Quality Of Life for state residents. It could also lead to a decline in the state’s economy.
- The state government’s financial resources come from a variety of sources, including:
(a) Income taxes
(b) Sales taxes
(c) Property taxes
(d) Corporate taxes
(e) All of the above
- The state government’s financial resources are used to fund a variety of programs, including:
(a) Education
(b) Healthcare
(c) Transportation
(d) Public safety
(e) All of the above
- The state government’s financial resources are also used to pay for:
(a) The state’s debt
(b) The state’s pension obligations
(c) The state’s unemployment insurance program
(d) All of the above
- The state government’s financial resources are limited by:
(a) The amount of revenue it can raise
(b) The amount of spending it can authorize
(c) The amount of debt it can issue
(d) All of the above
- The state government’s financial resources are also affected by:
(a) The national economy
(b) The state’s economy
(c) The state’s demographics
(d) All of the above
The state government’s financial resources are important because they allow the state to provide essential services to its citizens.
The state government’s financial resources are also important because they allow the state to invest in its future.
The state government’s financial resources are a finite resource, and it is important for the state to manage them wisely.
The state government’s financial resources are also affected by the decisions of the federal government.
The state government’s financial resources are important because they allow the state to respond to the needs of its citizens.