Chief Minister N. Chandrababu Naidu on Sunday said the division of the State had placed the residuary Andhra Pradesh at a great disadvantage and created disequilibrium in terms of developmental dynamics, besides negatively impacting key sectors.
Releasing the ‘White Paper on the impact of State reorganisation’, the eighth in the series at a press conference here, the Chief Minister lashed out at the previous UPA government for dividing the State in a tearing hurry and inflicting a serious blow to the fiscal health and developmental integrity of the Telugu community. The whole exercise was marked by lack of adequate consultation with stakeholders, transparency and eventually the A.P. Reorganisation Act, 2014 contained several contradictions and omissions.
Terming the Act as the fountainhead of all problems, he said it was the principal source of unfair and unjust treatment to both successor States, with the residuary Andhra Pradesh being the worst sufferer. “Some provisions in the Act have been inserted with a deliberate intention to create friction between the two successor States,” he added.
Touching upon some “glaring defects”, Mr. Naidu said the UPA government had neither created an institutional framework essential for effective governance of the common capital, nor put in place a Standard Operating Procedure (SOP) that provides an equitable platform to both the State governments and ensures the safety and security of the citizens as also fair and equitable treatment of all concerned.
Citing other examples, he said the distribution of tax devolutions from the Centre in accordance with the dictates of the 13 Finance Commission to the combined State would result in the residuary AP receiving nearly Rs. 840 crore less during 2014-15 than if the revenues were allocated to the two States based on the 13 FC formula.
Hitting out at the provisions in the Act on apportionment of assets based on geographical location and liabilities on population ratio (58.32 per cent for A.P., 41.68 per cent for TS), the Chief Minister said, with all major assets located in and around Hyderabad city, Andhra Pradesh forfeited all major assets and inherited huge liability without having the wherewithal to service the debt.
An analysis of the potential revenue receipts and expenditure for 2014-15 indicated that the total revenue receipts of the residuary A.P. were likely to be less than 50 per cent of the united State, while the expenditure was likely to be nearly 60 per cent.
Overall, the residuary AP, he said, was at a significant disadvantage, and the resource gap for 2014-15 was estimated to be Rs. 18, 236 crore. This would translate to nearly 4.84 per cent revenue deficit and 7.18 per cent fiscal deficit. The resource gap for the 10-month period is estimated to be Rs. 15, 691 crore compared to Rs. 3,555 crore surplus of Telangana. “The current context has positioned Andhra Pradesh in a fiscally precarious position,” Mr. Naidu said.
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NAIDU ON THE STATE OF A.P.
Bifurcation dealt a severe blow to the fiscal health of Telugu community
ON A.P. REORGANISATION ACT, 2014
-It has several contradictions and omissions
-It is the principal source of unfair and unjust treatment to both States
*There is a need for a standard operational procedure that ensures equitable treatment of people from A.P. and TS
*Distribution of tax revenue to the combined State will result in A.P. receiving nearly Rs. 840 cr. less in 2014-15
*With major assets located in Hyderabad A.P. inherited a huge liability without the wherewithal to service the debt
*The total revenue receipts of the residuary A.P. are likely to be less than 50 per cent of the united State
QUOTE
“Some provisions in the A.P. Reorganisation Act, 2014 have been inserted with a deliberate intention to create friction between the two successor States.”
N. Chandrababu Naidu
Chief Minister
