Swarna Andhra 2047: Task force flags fiscal issues in new report

The task force on economic development for Swarna Andhra Pradesh-2047 has prepared a report expressing concern over the state's current fiscal scenario and also suggested various policy interventions-including the setting up of an independent agency to monitor compliance with Fiscal Responsibility Legislation (FRL) provisions.

- Srinivasa Rao Apparasu

The 360-page report, prepared in collaboration with the Confederation of Indian Industry, was made public on Thursday. The task force was headed by Tata Sons executive chairman N Chandrasekaran.

It was presented to chief minister N Chandrababu Naidu in New Delhi on Wednesday evening, officials aware of the matter said.

According to the task force, the financial position of the state was precarious, especially with total liabilities as a percentage of GSDP (including guarantees) standing at more than 40%. "This poses a risk to the state's medium to long term debt sustainability and is a masked fiscal burden for the future, which could reduce the fiscal space for productive expenditure," it said.

Apart from establishment of an independent agency to monitor compliance of fiscal responsibility legislation, the report also suggested formation of State Institutions of Transformation (SITs) in collaboration with NITI Aayog as well as the establishment of an independent public debt management cell, in line with the recommendation of the Fifteenth Finance Commission.