Audit Reports
Andhra Pradesh
Report No. 1 of 2012 - Financial Audit on State Finance of Government of Andhra Pradesh
Overview
Government of Andhra Pradesh enacted the Fiscal Responsibility and Budget Management (FRBM) Act in October 2005, setting out a reform agenda through a fiscal correction path in the medium term with the long-term goal of securing growth stability for the State economy. The State Government's commitment to carry forward these reforms is reflected in policy initiatives announced in the subsequent budgets. While the benefits of FRBM legislation have been realized to a large extent in terms of reduction in major deficit indicators etc., the State Government's switchover to VAT, introduction of New Pension Scheme, ceiling on Government guarantees and a host of other institutional and sectoral reform measures are expected to facilitate building up the 'fiscal space' needed for improving the quality of public expenditure and promote fiscal stability.
Based on the audited accounts of the Government of Andhra Pradesh for the year ended March 2012, this report provides an analytical review of the finances of the State Government. The report is structured in three Chapters.
Chapter 1 is based on audit of Finance Accounts and makes an assessment of the Government's fiscal position as on 31 March 2012. It provides an insight into trends, among others, in State Government's resources and their application, developmental expenditure, borrowing pattern, sustainability of debt etc., besides a brief account of central transfers - both to the State Government, and to the implementing agencies through off-budget route. It also assesses the adequacy of the State's fiscal priorities.
Chapter 2 is based on audit of Appropriation Accounts and reviews the allocative priorities of the State Government and the manner in which the allocated resources were managed by the service delivery departments.
Chapter 3 gives an overview of the State Government's compliance with various reporting requirements and financial rules. The report also has an appendage of additional data collated from several sources in support of the findings.