14th Finance Commission hands over a raw deal to AP: Naidu

Andhra Pradesh Chief Minister N Chandrababu Naidu said here today that the 14th Finance Commission has not addressed state's development needs after the "unscientific bifurcation" of undivided Andhra Pradesh.
At a press conference in his assembly constituency of Kuppam today, he said the Finance Commission denied the state a level-playing field and has not made any specific award for Andhra Pradesh, though it acknowledged that the state has suffered fiscal damage as a result of reorganisation.
"The Finance Commission has treated Andhra Pradesh on par with other states, both for the purpose of tax devolutions and revenue deficit grant," Naidu said expressing his dissatisfaction.

Even the grant of Rs 2,429 crore for NDRF and SDRF suggested for disaster management in the next five financial years is insufficient because AP is in a seismic zone and is vulnerable to several disasters, he said.
Grants for rural as well as urban local bodies at Rs 8,654 crore and Rs 3,635 crore respectively too are insufficient, he added.
He said the commission's estimates clearly indicate that Andhra Pradesh would be the only state in the country (other than the special category states) which would continue to have revenue deficits even in fiscal 2019-2020, while several other states would close the year with a surplus budget.

While the Commission's increased devolution to states is a welcome move, the AP Chief Minister said the award of Rs 2,06,819.24 crore over the next five year period (2015-16 FY to 2019-2020 FY) merely addresses the revenue expenditure needs (administration and maintenance costs of governance) of Andhra Pradesh.