The Union government is working out an alternative mechanism to extend financial assistance to Andhra Pradesh, Finance Minister Arun Jaitley said in the Rajya Sabha on Tuesday.
During the Motion of Thanks on the President’s address, TDP members gathered in the Well of the House raising slogans in support of their demand and expressing their grievances.
The Finance Minister then intervened, giving an assurance that the government was looking into the issue. He said efforts were being made to ensure that every part of the Andhra Pradesh Reorganisation Act and the commitments made by the Central government at all the stages were honoured. “The Central government stands by it,” Mr. Jaitley said.
External aid
About the funds to given in lieu of the special package, he said the State government had requested that it be given by way of externally aided programmes. The decision was taken to cover the difference of 30% funds coming from the Centre, between the Central schemes and the amount as provided under Special Status.
Mr. Jaitley said that on January 3, the Chief Minister wrote to him suggesting that the programmes be funded through NABARD. The externally aided schemes were time-consuming as they required approval of external agencies such as the World Bank.
However, the Finance Minister said, funding through NABARD would create problems with regard to the addition of fiscal deficit, reducing the borrowing space for the State.
