FM: Committed to Andhra Pradesh special package

  • FM: Committed to Andhra Pradesh special package

FM: Committed to Andhra Pradesh special package

Upset with Centre's decision on special status, Telugu Desam Party (TDP) may quit NDA and its two ministers in the Modi government may tender their resignation tomorrow. The state government should move forward by implementing wider reforms and more equitable investment throughout the state. Therefore some help had to be given to AP. "That is why, we have made a decision to grant a special financial package to Andhra Pradesh, keeping in view the loss of revenue it was facing on account of bifurcation", he said, assuring that the special financial assistance package announced by the Centre in September 2016 would bring all the benefits entitled under the SCS.

"The decision to grant special status was announced in Parliament and endorsed by opposition parties, including the BJP in 2014".

Currently, eleven states - Jammu and Kashmir, Arunachal Pradesh, Assam, Nagaland, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura and Uttarakhand are the special category states.

"The Centre stands committed to satisfy every condition".

However, Jaitley ruled out the possibility of political turmoil in the state resulting in an increase in the quantum of funds to be given. "At no stage has the Centre said that we won't give it". "In fact, it is nearly me waiting to know the bank accounts where the money has to be deposited", Jaitley said at a special press conference called to brief on Andhra Pradesh issue.

Naidu also questioned the Centre's motive behind seeking accounts for the Rs 12,500-crore financial aid given to the state in the last three years. He also accused the Congress of killing the mother (combined Andhra Pradesh) to give birth to a baby (Telangana).

At the TDP Legislature Party meeting in Vijayawada on Tuesday, including his party colleagues in the Cabinet, Naidu said Union Finance Minister Arun Jaitley cold-shouldered a delegation led by state Finance Minister Y Ramakrishnudu that met him on Monday evening, reported the Indian Express.

The minister explained that the finance commission which devolves funds out of the Centre's residual resources to the states as part of the central schemes, is designed for the Centre to finance 60 per cent and the States 40 per cent. "Instead of calling it special status, we're calling it a special package", Jaitley had told the media.

However, in January this year, the state government modified the request and demanded the money through NABARD. This shows the perverse demand for central government sops. However, after the 14th Finance Commission report, the status was done away with, but the 90-10 provision remained.