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Centre promises financial support to AP

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Amid demand for special category status for Andhra Pradesh, the government today promised to provide financial support to the state for 5 years to meet revenue losses, saying it needs “special help” in view of bifurcation of the state last year.

“Andhra Pradesh is the only among the large states which has to be given special assistance for 5 years because bifurcation of the state has made it a revenue-deficit state. And that is a solemn commitment that we as a country have towards Andhra because it is one of the performing states…,” Finance Minister Arun Jaitley said in Lok Sabha while replying to a debate on Supplementary Demand for Grants.

The Finance Commission itself has suggested an additional revenue grant for the state, he added in the House which has been witnessing voiferous demands by members from Andhra Pradesh for grant of special category state.

Assuring members from Andhra Pradesh, he said the Centre would not only fund the deficit but would provide assistance to the state for developing infrastructure and building capital city for the new state.

He said the state has to set up new capital, secretariat, High Court, Raj Bhawn etc for which centre is providing support.

“But as far as Andhra Pradesh is concerned…Some special help in terms of compensation Andhra in all the projects, whether it is your water project, whether it is your capital project, whether it is revenue deficit, whether it is additional central projects to be given to the state so that the state is able to develop that capital,” he said.

“..For the capital, for the idustrialisation there are various kinds of measures which we have taken,” he said.