Hyderabad: It’s raining funds for the cash-starved AP thanks to the 14th Finance Commission, which has allotted Rs 1.69 lakh crore as grants over the next five years, in addition to Rs 22,113 crore to fill the state’s revenue deficit.
Interestingly, the combined AP state had got only Rs 1.14 lakh crore for five years. For panchayat raj institutions, AP will get Rs 8,650 crore while municipalities will get Rs 3,630 crore over five years. While all states, including AP, have been demanding a 50 per cent share of Central tax revenue, the 14th Finance Commission has increased the states’ share from 32 per cent to 42 per cent.
The Commission has also agreed to the state governments’ demands and has given a free hand to the state governments in spending the funds. Earlier, the Centre would allot funds scheme-wise but from next year, the states will have the freedom to plan the course of their own development.
The 13th Finance Commission will expire by March 31, 2015, and the 14th Finance Commission will start from April 1. Last year (the present financial year), AP government had got Rs 13,500 crore and in the next financial year (the first of the 14th Finance Commission), AP will get Rs 24,938 crore.
In the 13th Finance Commission period the total divisible amount to the states in five years was Rs 14,48,096 crore and the 14th Finance Commission’s advanced estimated, divisible amount to the states is Rs 39,48,187 crore.
