Andhra Pradesh will receive just another ₹138 crore towards bridging the revenue deficit estimated during the first year of bifurcation.
The Centre has released only ₹4,000 crore till date though it promised to bridge the projected revenue deficit of over ₹16,000 crore during the first year (2014-15) of bifurcation.
The Centre, in a letter to the State government, has made it clear that it will release ₹138 crore more to fulfil its promise, and cited the debt redemption scheme implemented by the government as an excuse.
According to sources, the Centre’s argument is that the revenue deficit shot up to ₹16,000 crore because of loan waiver and payment of pension, and it cannot consider the implications of debt redemption for bridging the revenue deficit. As a result, Andhra Pradesh would get only ₹138 crore.
The Centre is not considering the revenue deficit of ₹15,691 crore for 10 months during 2014-15, as compared with ₹3,555 crore surplus for Telangana.
The Centre indicated during discussions that it would release ₹7,000 crore to offset the revenue deficit that had arisen out of bifurcation.
The State government agreed to it. Taking that into consideration, A.P. should get at least ₹3,000 crore more.
“But now, the Centre has trimmed the assistance beyond imagination,” sources say.
Initially, it was estimated that ₹17,000 crore would be the revenue deficit. Later, it was revised to ₹16,000 crore and the same was projected in the A.P. budget.
“It is the responsibility of the Centre to bailout the State from revenue deficit,” sources say.
The Centre argues that its commitment to help A.P. in filling the resource gap for 2014-15 has been delivered on the basis of standardised expenditure for that year.
When contacted, Finance Minister Yanamala Ramakrishnudu says that Chief Minister N. Chandrababu Naidu would write a letter to the Centre explaining the State’s point of view.
“The government will prevail upon the Centre to bridge the revenue deficit,” he adds.
