✎ AP must accelerate reforms by Dec 2026 to unlock ₹3,525 crore under SASCI for capital expenditure and sectoral digitization.
Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The Andhra Pradesh government has directed its departments to expedite reforms to secure over ₹3,500 crore under the Centre’s Special Assistance for Capital Investment (SASCI) scheme in 2026-27. Key reforms include digitising agriculture and livestock sectors for ₹1,700 crore, mining sector overhaul for ₹950 crore, and telecom infrastructure upgrades for ₹250 crore. Public health incentives, biogas policies, and AgriStack implementation could add another ₹1,450 crore, while performance-linked funds for reducing maternal mortality and TB deaths are also on offer. The State has already received ₹3,486 crore under SASCI but must complete reforms by December 1 to unlock the remaining funds. This initiative aligns with the Centre’s push for performance-based incentives, making it crucial for aspirants preparing for Banking, SSC, and RBI Grade B exams, where questions on fiscal federalism, Centrally Sponsored Schemes (CSS), and governance reforms are common.
The urgency to utilise Central funds efficiently highlights governance challenges, with wide disparities in fund utilisation across departments—BC Welfare Department utilised 99% of funds while Water Resources spent only 6%. Such disparities underscore the importance of administrative efficiency in fund management, a topic often tested in competitive exams. Additionally, the State’s pursuit of ₹116.98 crore in restored sanctions and the review of ₹516.35 crore SASCI-funded projects reflect the Centre-State financial dynamics. For Banking and SSC aspirants, this case study is relevant to questions on fiscal transfers, CSS implementation, and the role of district-level administration in fund utilisation. RBI Grade B candidates may find it useful for understanding the Centre’s conditional funding mechanisms and their impact on State finances.
Source: The Hindu
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