"This is the first step. We will go ahead with other actions later," Naidu said at a press conference in Amaravati.
"Tried speaking to Prime Minister Modi as a courtesy to inform about our decision to quit but he did not come on line," Naidu added.
"Arun Jaitley's statement was the last straw. They are apparently predetermined. They don't appear to help the state," Naidu said.
Earlier in the day, Jaitley had said that the Centre is committed to offering the monetary equivalent of this status to the state, which will be presented as a 'special package.'
"The Centre stands committed to satisfy every condition. The only variation is that after the 14th Finance Commission report, instead of formally calling it a Special Category state, we are calling it a special package, which gives the same monetary benefits that a special category state gives you," he said at a press conference in the national capital.
However, Jaitley ruled out the possibility of political turmoil in the state resulting in an increase in the quantum of funds to be given.