Centre extends assistance of Rs 1.72 lakh crore to Andhra

Currency The state also received at least Rs 15,000 crore by way of routine grants the Centre extends to states annually | Reuters

The Centre has extended financial assistance of over Rs 1.72 lakh crore to Andhra Pradesh since June 2014 even though the N Chandrababu Naidu government has been complaining about "meagre allocations" to the state.

According to a 'fact-sheet' prepared by the Centre, the Narendra Modi government sanctioned Rs 1.12 lakh crore under different heads to the state after its bifurcation in June 2014. Besides, projects worth Rs 60,000 crore were sanctioned by the Ministry of Road Transport and Highways in December last.

The Railways sanctioned Rs 20,236 crore, a major share of which will go for doubling of tracks, while the Defence Ministry has lined up projects worth over Rs 5,700 crore for AP. The Commerce and Industry Ministry has decided to extend Rs 2,700 crore of which Rs 1,900 crore has already been released, while the HRD Ministry will spend Rs 7,000 crore for setting up institutes like IIT and IIM.

The state also received at least Rs 15,000 crore by way of routine grants the Centre extends to states annually.

On the contentious issue of bridging the Rs 16,000 crore revenue deficit presumably suffered by AP due to bifurcation, the note prepared by the Government of India says, Rs 2,303 crore was released during 2014-15 to meet the resource gap funding, while grant-in-aid of Rs 6,609 crore was given towards revenue deficit.

AP will get a sum of Rs 2,06,819 crore as 'enhanced devolution' over the next five years (Rs 41,364 crore per year) and an additional Rs 29,374 crore per annum for five years as 14th Finance Commission grant, the note says.

It says that out of the total sanctions of Rs 1.72 lakh crore, a sum of over Rs 35,000 crore has already been released for various projects, while several financial releases were stuck because the state government could not furnish the requisite utilisation certificates for the disbursed amount or failed to come up with detailed project reports.

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Topics : #Andhra Pradesh

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