The Hindu : WB package to further reform process

Online edition of India's National Newspaper
Thursday, Feb 12, 2004

Andhra Pradesh

Andhra Pradesh

WB package to further reform process

By Our Special Correspondent

HYDERABAD, FEB. 11. The World Bank (WB) today approved the Second Andhra Pradesh Economic Reform Loan/Credit, to back the State's efforts to achieve better socio-economic outcomes and reduce poverty.

The $220-million package supports the ongoing reform programme.

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, says a World Bank communique from Washington.

The first operation, amounting to $250 millions, supported reforms in fiscal policy, public expenditure management, and governance, and was co-financed by the DFID for a further $100 millions. The new operation has been in the pipeline for some time and recognises progress made to date. It supports both a deepening of ongoing reforms and an extension of the reform initiative to other areas like public enterprises and the power sector. It will again be co-financed by DFID.

"AP 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 to accelerate poverty reduction.

The Second AP Economic Reform Loan/Credit is an important part of the Bank's contribution to this effort,'' the communique said, quoting Michael Carter, the World Bank's Country Director for India.

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