Andhra Pradesh government is mulling over commercializing the public services like drinking water supply system, sanitation and street lighting to bring all these service under “user charges” regime, besides revising the existing tariff upwardly.This is basically on the pretext of improving revenues of local bodies.
The State government also seems to be preparing itself to privatize public transport system in the State with an eye on bridging the revenue and expenditure gap.
The State government asked the Fourth State Finance Commission to look into the feasibility of commercialization of public services in the State.
State government asked the Fourth State Finance Commission to examine and make recommendations keeping in view the revenue resources of local bodies, their ability to raise additional taxes, devolution, grants from State government and grants from the 14th Finance Commission and make projections for the forthcoming five years from April 2015.
A GO has been issued by the State government asking the Commission to submit its recommendations by December 30, 2016. It also has been asked to consider the recommendations of the 14th Finance Commission while preparing its report.
As per the terms of reference fixed by the State government, the Commission will have to examine the possibility of commercializing of public services in the State by way of imposing “user charges”.