AP officials confused over fund

AP Chief Minister N. Chandrababu Naidu had sent a letter recently to Prime Minister Narendra Modi, Union finance minister Arun Jaitley and others requesting release of Rs 1,000 crore to take up relief and rehabilitation and other works in the flood-affected districts.

Preliminary estimation put the loss due to heavy rains and floods at Rs 3,500 crore. After two days, the Centre released Rs 700 crore. Initially, the state finance department officials thought that the amount released was to take up relief, rehabilitation and other works in the flood-affected districts. The officials came to know that the funds were not released for flood relief when the Centre asked for a detail report about loss due to heavy rains in the state.

After this the state finance department officials thought that the funds released were arrears to fill the revenue deficit of the previous financial year. The Centre has to pay about Rs 12,000 crore in arrears under the assistance to fill the revenue gap of the previous financial year. Some other officials thought these funds were released for reimbursement of the Polavaram project expenditure and for backward areas development fund.

The Centre announced a few days ago about Rs 1,000 crore assistance and explained the details as Rs 350 crore for AP Rs 350 crore for backward areas development and Rs 300 crore for Polavaram.

AP finance department principal secretary P.V. Ramesh said the Centre did not specify under what account these funds were released. Speaking to Deccan Chronicle, Mr Ramesh said the Centre mentioned “plan assistance”. He said they have to know exactly under what account these funds were released.