The World Bank has approved the Second Andhra Pradesh Economic Reform Loan worth $220 million, to back the state's efforts to achieve better socio-economic outcome and reduce poverty.
The loan-cum-credit is the second in a series of budget support operations designed to help the state restore fiscal sustainability, improve service delivery to the poor, and accelerate growth.
The new operation supports the state in the implementation of reforms in improving poverty monitoring and pro-poor policy formulation and implementation, implementing structural measures to foster economic growth, restructuring and privatising public enterprises, improving fiscal discipline and strengthening governance.
The first operation, amounting to $250 million, supported reforms in fiscal policy, public expenditure management, and governance, and was co-financed by the United Kingdom Department for International Development for a further $100 million.
"Andhra Pradesh has shown a consistent commitment to poverty reduction and is one of India's leading reforming states. It has made encouraging progress, but a major effort is still needed in order to accelerate poverty reduction and reach the Millennium Development Goals. The Second Andhra Pradesh Economic Reform Loan/Credit is an important part of the bank's contribution to this effort," Michael Carter, the World Bank's Country Director for India, said.
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