The Union Budget 2015-16 will kick off the promised funds flow to Andhra Pradesh for the first time after its bifurcation in June last year.
“A major component will be a special award for the State on the basis of recommendations from the 14th Finance Commission, the report of which has been under study by the Government,’’ a top official in the Department of Finance, Government of Andhra Pradesh, told BusinessLine here.
Till now, the State has received very little of the promised funds mentioned in Section 46 and 13th schedule of the State Bifurcation Act. According to section 46, ₹4,200 crore has to be given to the State in line with the recommendations of the 13th Finance Commission for the year 2013-14.
“Out of this we have received ₹1,560 crore and the remaining ₹2,700 crore is ready for release. We also made elaborate proposals for the special award of 14th Finance Commission and are expecting a generous award,’’ the official said. In addition, there will also be a special grant from the Centre to the tune of ₹15,691 crore as per the proposal.
Special category The much-talked about special category status is now almost an impossibility, thanks to the substitution of the Planning Commission with the NITI Aayog.
“Technically speaking any special category status will have to be routed through the National Development Council and the Planning Commission. Now that they do not have any relevance where is the question of special package?’’ the official said.
Under special category status, a State is generally entitled for bigger Plan allocation in the form of 90 per cent grant and 10 per cent loan besides a direct borrowing facility from the external agencies.
“Financially, however, the State is not expecting any set back as it has been assured by the Centre that it would ensure sufficient fund flow irrespective of the nomenclature of special status,’’ the official added.