The government informed Parliament on Wednesday that ₹12,476.76 crore has been released as special assistance to Andhra Pradesh, including ₹2,500 crore for establishment of the new capital city of the State.
Union minister of State for Home Hansraj Gangaram Ahir said the Central and Andhra Pradesh governments have been working together to implement the provisions made in the Andhra Pradesh Reorganisation Act, 2014 which includes establishment of several institutions and launch of certain projects, as mentioned in Schedule 12 of the Act.
NDA constituent Telugu Desam Party had pulled out its two ministers — Ashok Gajapathi Raju and Y.S. Chowdary — from the Central government over its failure to grant special category status to Andhra Pradesh.
Development grants
Mr. Ahir said that the State government has also communicated to the Centre on the release of development grants, resource gap and Polavaram project, among other issues.
It has also communicated on implementation of apportionment of assets and liabilities, and division of employees in respect of institutions listed in Schedule 9 and 10 and continuity of services in respect of institutions listed in Schedule 10 of the Act.
“The 14th Finance Commission, without making a distinction amongst states, recommended an enhanced devolution of 42% of the Central government’s tax revenues to states to cover the resource gap. In the case of Andhra Pradesh, the Commission recommended that the Central government would provide revenue deficit grant of ₹22,113 crore for a period of five years, in addition to the enhanced tax devolution. Funds have been released to Andhra Pradesh on this account for 2015-16 and 2016-17,” he said.
Work related to Schedule 9,10 and 12 of the Act is under progress in consultation with both the State, he said.
