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Fund flow to AP as promised before bifurcation, assures Jaitley

V. Rishi Kumar Hyderabad | Updated on March 12, 2018 Published on February 08, 2015

Union Finance Minister Arun Jaitley has assured Andhra Pradesh Chief Minister N Chandrababu Naidu that the Centre would fulfill all the assurances made in the AP Re-Organisation Act.

During a meeting in New Delhi today, the Finance Minister is learnt to have assured AP that the recent package from the Centre to the State and some incentives for industries was an interim support and that the funds required to bridge the deficit in the State would be provided.

According to Government sources, the Finance Minister has assured the Chief Minister that various assurances made by the former Prime Minister Manmohan Singh on the floor of the House during the passage of the Bill would be honoured.

During the meeting, Naidu is said to have expressed the tough situation the State was passing through in terms of shortage of funds to take up capital expenditure and also meet the basic mandatory requirements. He wanted the Centre to accord Special Status and incentives that come along with it, bridge the deficit,  and extend necessary financial assistance to develop a new capital city.

The AP Chief Minister highlighted the tough times and the disadvantageous position it is now placed in due to bifurcation. The revenues have dwindled, there is no capital, and the revenue flow is inadequate to meet the fund requirement. Therefore, till the State moves on to better situation, he wanted the Centre to provide a level-playing filed.

At the NITI Aayog meet chaired by Prime Minister Narendra Modi today, Naidu conveyed the State’s concerns and the hardship it is now faced with. Requesting the Centre to consider the current tough situation which has been forced upon it and provide the necessary funding, he favoured inter-linking of rivers.

Published on February 08, 2015
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