VIJAYAWADA: Following vociferous protests by TDP MPs decrying poor budgetary allocations to Andhra Pradesh and the delay in implementation of AP Reorganisation Act provisions, Union Finance Minister Arun Jaitley reiterated in both Houses of Parliament on Tuesday that the Centre was committed to the promises made to the state. “Special package, which is being given in lieu of special category status, has to be given in the form of externally aided projects (EAP) as agreed by the state.
Normally, the aid extended under centrally-sponsored schemes is in the ratio 60:40. In the case of special status, it will be 90:10, that is 30 per cent more than normal. That 30 percent has to be given through EAP,” he explained. The Finance Minister said there has been a delay with regard to EAP as the projects must be approved by external funding agencies such as the World Bank and JICA, which is time-consuming. It is relevant to note that Chief Minister N Chandrababu Naidu wrote a letter to Jaitley on Jan 3 requesting for the amount to be transferred through NABARD.
“If it is done so, it will create problems with regard to fiscal deficit, borrowing space of the State will be contracted,” Jaitley pointed out and added that he “is having the whole issue examined”. “A solution by which an amount can be given through an alternative mechanism is being worked out. I have asked the expenditure secretary to call the AP finance secretary to Delhi and work out procedural formalities so that it can be done,” the Minister said.
The second pending issue, he said, was regarding fiscal deficit. “The 14th financial commission recommendations apply from 2015-16. Ten months prior to that, revenue deficit has to be made up by the state. There is no formula to calculate revenue deficit. However, as agreed, `3,900 crore was released,” he explained.
Meanwhile, Railway Minister Piyush Goyal said the demand for a separate Railway Zone with Visakhapatnam as its headquarters was still under consideration. While speaking at the Rajya Sabha, he said the Centre was looking at the feasibility of such a move as it would concern other states as well. “We are in consultation with other states. We are looking for an amicable solution,” he asserted. Goyal observed that fixing the contours of a separate railway zone should have been done by the previous government before making any promise.
The TDP MPs, however, said they were not satisfied by the promises of Jaitley or Goyal and would call off protests when something concrete came off their efforts. “We will be satisfied when all the promises are implemented,” TDP Rajya Sabha member CM Ramesh told a news channel. According to him, the state should be given between `17,000 crore and `18,000 crore under special financial assistance in lieu of special category status. TDP MP Thota Narasimham was particularly critical of Jaitley as there was no mention of AP Reorganisation Act provisions in the Budget, which he said was “an insult to Andhra Pradesh and its people”.AP Finance Secretary Ravi Chandra and financial advisor Kutumba Rao have left for Delhi on the advice of the Chief Minister.
