Chief Minister N. Kiran Kumar Reddy Friday received the award at "State of the States" conclave in New Delhi.
The award was given on the basis of an objective data for 2011-12 and 2012-13, said a statement from the chief minister's office here.
Andhra Pradesh was ranked number two in education and number four in attracting investments. However, the state was adjudged the best among the southern states in attracting investments.
The chief minister, who completed three years in office last month, listed out the measures which his government took to achieve all-round excellence.
Kiran Reddy pointed out that the government not only restored normalcy but also brought financial turnaround, which helped them give interest free loans to farmers and 1.45 crore women.
Implementation of welfare schemes was improved and some new ones announced, he said.
"We ensure that targeted beneficiaries gain from the schemes. All this has been possible because we have a team of dedicated and committed officials," explained the chief minister.
An important achievement in governance, which India Today has noted, is the Mee Seva programme. Under this programme, the government is providing citizen services in a transparent maner and through a single window.
Mee Seva provides easy and quick access to getting birth, death, income, caste and a host of other certificates and entries from records of different departments for a nominal fee.
Meanwhile, the government has launched state wide area network through which Hyderabad is connected with all 23 district headquarters and 1,126 'mandal' headquarters by a video conferencing facility.
--IANS (Posted on 20-12-2013)