Andhra Pradesh govt disappointed with Union Budget

government today expressed disappointment that the 2016-17 Budget does not make any allocation for bridging the revenue deficit of the cash- starved state and gives only Rs 100 crore for the Polavaram multi-purpose irrigation project.

“We still have to get Rs 12,000 crore from the Centre for bridging the revenue deficit caused by the state’s bifurcation. No allocation has been made for this,” said AP Finance Minister Yanamala Ramakrishnudu.

Talking to newspersons after a Politburo meeting here tonight, he said no financial allocation has been made for the construction of AP’s new capital, Amaravati.

The Rs 100-crore earmarked for the Polavaram project is a pittance, he added.

The state government had requested the Centre to grant at least Rs 4,000 crore for the mega venture this year but Finance Minister made an allocation of just Rs 100 crore for Polavaram, which has been declared a national project.

“The state’s financial position is as such very bad. With no substantial allocations from the Centre, the scene may only worsen,” Yanamala said.

Although a lot of things were promised in the AP Re-organisation Act, 2014, there has been no significant assistance from the Centre, he said.

Asked if the state government would “fight it out” with the Centre on this issue, the Finance Minister remarked there was no point in a confrontation.

“We achieve nothing through confrontation,” he said.

Meanwhile, party sources said the Politburo meeting, chaired by Chief Minister and TDP President N Chandrababu Naidu, discussed the Budget and “injustice” done to Andhra Pradesh once again.

The Politburo was said to have felt that the Centre is “not honouring even the AP Reorganisation Act”.

“Be it the revenue deficit or the capital, they gave us practically nothing. We have to seriously take this up with the Centre,” those present at the meeting said.

BJP, which is in power at the Centre at the head of the NDA grouping, is part of the Naidu-led government in the state.