The correct answer is: d) A combination of the above.
Andhra Pradesh has reduced its fiscal deficit in recent years through a combination of revenue growth, expenditure control, and debt restructuring.
Revenue growth has been driven by strong economic growth in the state, which has led to higher tax revenues. Expenditure control has been achieved through a number of measures, including reducing the size of the government bureaucracy, cutting subsidies, and improving efficiency in public spending. Debt restructuring has helped to reduce the state’s debt burden and make it more affordable to repay.
The combination of these measures has helped Andhra Pradesh to reduce its fiscal deficit and improve its financial position.
Here is a brief explanation of each option:
- Revenue growth: This refers to the increase in the state’s revenue collection. Revenue growth can be achieved through a number of measures, such as increasing taxes, raising user fees, and expanding the tax base.
- Expenditure control: This refers to the reduction in the state’s expenditure. Expenditure control can be achieved through a number of measures, such as cutting spending on non-essential items, reducing the size of the government bureaucracy, and improving efficiency in public spending.
- Debt restructuring: This refers to the renegotiation of the terms of the state’s debt. Debt restructuring can help to reduce the state’s debt burden and make it more affordable to repay.