Hyderabad: In a major setback to the AP government, the Union Finance Ministry has said it will release only Rs 5,000 crore under outstanding arrears of revenue deficit for financial year 2014-15 against the state's claim of Rs 13,776 crore.
For the construction of the capital city, the Centre plans to give another Rs 350 crore. AP Chief Minister N. Chandrababu Naidu and others met Union finance minister Arun Jaitley and officials of his department and discussed financial assistance to the state.
The government told Union finance ministry officials that the revenue deficit in 2014-15 was Rs 16,079 crore and the Centre had released Rs 2,303 crore. It asked the Centre to release Rs 13,776 crore under outstanding arrears of revenue deficit.
According to sources, Union finance ministry officials said they would not give any funds to the new schemes introduced by the state government.
In the Rs 16,079-crore revenue deficit, the AP government included funds given under waiver of farm loans, the amount enhanced for social security pensions and power subsidy to industries and assistance to discoms and incentives for industrial promotion.
Finance ministry officials said that as per its calculations the revenue deficit in 2014-15 was about Rs 7,303 crore and it had released Rs 2,303 crore. It said that to cover the revenue deficit, the Centre would give another Rs 5,000 crore but in phases.
On funds towards the construction of capital city, the Union Finance Ministry officials said the Centre had decided pay Rs 2,500 core. So far, the Centre has released Rs 2,050 crore, and the remaining would be released in due course.
State government officials told the finance ministry that the Centre has released only Rs 1,050 crore for the construction of capital city and another Rs 1,000 crore was released to Vijayawada and Guntur for creating infrastructure.
Earlier, the Centre had released Rs 1,500 crore, of which Rs 500 crore was for construction of government buildings such as Assembly, High Court, Raj Bhavan and others and another Rs 1,000 crore for creating infrastructure in the capital city area, finance department officials said.
When state government officials asked about release of Rs 350 crore under backward areas development scheme for seven districts in the state, Union finance ministry officials said they have given Rs 700 crore under this scheme in the last two years, but the state government did not send an action plan for spending these funds; it did not also submit utilisation certificates. They said after submission of action plan and utilisation certificates they will release Rs 350 crore in the current year.
