Andhra Pradesh Assembly has passed Fiscal Responsibility and Budget Management bill 2008 through a voice vote on Wednesday. The bill is aimed to minimize the effect of global slowdown by enabling the state to get additional borrowings for higher capital expenditure during this year.

The finance minister of AP said that government is facing shortage of funds to support welfare programs for poor. State has an option to generate revenue through land sale but required revenue can not be generated as property rates are declining following global slowdown.

Demanding support of opposition parties, the finance minister of state said, "We are falling short of our budget projections through the sale of land by almost Rs 10,000 crore. Hence, we decided to amend the FRBM Act 2005 to raise an additional Rs 6,000 crore to fulfill budget allocations and ensure enough funds for irrigation projects, welfare for the poor and housing programs."

Meanwhile, opposition parties objected the bill and said that state would fall in debt trap due to unfair economic policies of state government. Opposition advised the government to reduce its expenditure to generate more funds. TDP member Y Ramakrishnudu said that government has no vision and the state is on the verge of bankruptcy due to unhealthy policies of state government.

The AP assembly also passed Andhra Pradesh Farmers' Management of Irrigation Systems Act (amendment), 1997.