Centre provides Rs 6,403 cr to Andhra as financial assistance

Central government has provided an assistance of Rs 6,403 crore to the Andhra Pradesh government under various provisions of the Andhra Reorganisation Act, 2014.

"Having considered resources available with the state and availability of funds with the Union government within Gross Budgetary Support, since the enactment of AP Reorganisation Act 2014, up to March 2016, central assistance of Rs 6,403 crore has been provided," Planning Minister Rao Inderjit Singh said in a written reply to the Rajya Sabha.

The assistance has been provided under various provisions of the AP Reorganisation Act, 2014.

The minster also told the House that the provision made under the Act does not specify the quantum of the financial assistance to be provided to the states — Andhra Pradesh and Telangana — after bifurcation.

The Act provides for a special development package for the backward region of the successor state of Andhra Pradesh, particularly for Rayalaseema (four districts) and North Coastal (three).

According to the statement, Andhra Pradesh had requested for special development package (SDP) assistance for the backward area, particularly Rayalaseema and North Coastal region, for an amount of Rs 24,350 crore over five years (2014-15 to 2018-19) in a letter dated October 16, 2014.

The minister also said, "The 14th Finance Commission also recognised that the Andhra Pradesh state is revenue deficit state. The chief minister requested Vice-Chairman of NITI (National Institution for Transforming India) Aayog during May 2015 to release Rs 5,000 crore during 2015-16 for continuing the activities according to the SDP."

The central government has advised the state to revise the proposal according to discussion of the meeting. A comprehensive SDP proposal for Rs 24,350 crore was submitted to the NITI Aayog on January 6, 2016.

Singh also told the House that according to the assessment made by the 14th Finance Commission, Andhra Pradesh is set to receive Post Devolution Revenue Deficit Grant of Rs 22,122 crore over its award period (2015-2020).