Challenge:
In 1999-00, the state of Andhra Pradesh had an average income of around US$385. Nearly 22 percent of its population was below the poverty line, 40 percent of its primary school age children were out of school and the state’s deficit to Gross State Domestic Product (GSDP) ratio was breaching 5 percent.
Example of Impact:
Per capita income in Andhra Pradesh has risen to nearly US$700 in 2005-06, the poverty ratio has fallen considerably with nearly 95 percent of its primary school age children in school and the fiscal deficit at 3.5 percent of GSDP and falling.
Approach:
• The funds were used to support the government’s ongoing reform program to improve the state’s investment policies and strengthen revenue, public spending and financial management.
• Ushered in improved governance practices and raised the quality of service delivery in health, education, and power sectors.
• Improved management of anti-poverty programs through more effective monitoring and evaluation.
Challenges Remaining:
The continuation of assistance to the state through a variety of methods including focused and demand-driven analytical and advisory services.
RSS