The correct answer is: d) All of the above.
Andhra Pradesh is a state in India that has been facing a number of challenges in recent years, including revenue volatility, a high debt burden, and limited fiscal autonomy.
Revenue volatility is a major challenge for Andhra Pradesh because the state’s economy is heavily dependent on agriculture. This means that the state’s revenues can fluctuate significantly from year to year, depending on the weather and other factors. This can make it difficult for the state to plan its finances and meet its obligations.
Andhra Pradesh also has a high debt burden. The state’s debt has been increasing in recent years, and it is now one of the most indebted states in India. This high debt burden makes it difficult for the state to invest in its infrastructure and social programs.
Finally, Andhra Pradesh has limited fiscal autonomy. This means that the state has limited control over its own finances. The central government has a lot of control over the state’s finances, and this can make it difficult for the state to manage its finances effectively.
These challenges are having a negative impact on Andhra Pradesh’s economy and development. The state needs to address these challenges in order to improve its economic performance and the well-being of its people.
Here is a brief explanation of each option:
- Revenue volatility: This is the tendency for a state’s revenues to fluctuate significantly from year to year. This can be caused by a number of factors, such as changes in the economy, changes in tax rates, and changes in the weather. Revenue volatility can make it difficult for a state to plan its finances and meet its obligations.
- High debt burden: This is the amount of debt that a state owes. A high debt burden can make it difficult for a state to invest in its infrastructure and social programs. It can also make it difficult for a state to borrow money in the future.
- Limited fiscal autonomy: This is the extent to which a state has control over its own finances. A state with limited fiscal autonomy has to get permission from the central government before it can make changes to its taxes or spending. This can make it difficult for a state to manage its finances effectively.