This Article is From Sep 08, 2016

Arun Jaitley Announces Special Package For Andhra Pradesh

Advertisement
Andhra Pradesh Reported by , Edited by

Andhra Pradesh says it has suffered financial loss after its Telangana region was carved into a state.

New Delhi: The centre has announced more financial assistance for Andhra Pradesh to make up for the loss in revenue that the state has suffered from the bifurcation to create Telangana, but opposition parties have made clear that nothing less than "special category status" for the state will do.

Rejecting Finance Minister Arun Jaitley's late Wednesday night announcement of a special financial package for the state, the Congress and YSR Congress today stalled proceedings in the state assembly as the monsoon session began, raising slogans of "special status is Andhra's right".

They accused Chief Minister Chandrababu Naidu, whose Telugu Desam Party is a partner of the BJP both at the centre and in the state, of "compromising" on the state's interests. The YSR Congress, led by Jagan Reddy, has called for a bandh on Saturday. The Left parties have also supported the bandh.

The Congress accuses the TDP and BJP of failing to deliver on the promise of special status that its government at the centre made before the bifurcation of Telangana. By the time the new state was created, the Congress had lost the national elections and a new BJP government was in power.Mr Naidu had hoped yesterday's announcement would deflect some of the criticism. He too has been pressing the BJP-led Central government to grant special status, which would mean that Andhra Pradesh would get a bigger chunk of central assistance as grants than as loans.

Mr Jaitley said yesterday that the package, which includes full funding of a major irrigation project and tax concessions, will mean benefits for the state "equivalent" to special status.

Advertisement
"As far as the Andhra Pradesh Reorganisation Act is concerned, the government has decided that every commitment made in the Act will be fulfilled," he said in his late night announcement.

The NDA government, he said, is attempting to deliver on the promise made by Congress Prime Minister Manmohan Singh in 2013, but cited constraints placed by the 14th Finance Commission in granting special category status - the provision ceased to exist once the finance commission's recommendation to devolve 42 per cent of the centre's taxes to the states was accepted last year.

Advertisement
The bifurcation of Andhra Pradesh meant that new state Telangana got to retain the economic powerhouse Hyderabad, which houses IT and pharmaceutical companies as well as PSUs.
Advertisement