Hyderabad: Dashing hopes of the Andhra Pradesh government, the Centre on Thursday announced Rs 1,976.50 crore as a “special development package” for the state.
There is nothing special about the package, which only announced funds for regular schemes. Of the Rs 1,976.50 crore, the Centre has announced Rs 1,176.50 crore as revenue gap funding, Rs 350 crore for the development of seven backward districts and Rs 450 crore as assistance for the capital.
The expectations that the package, in lieu of special status, would give AP huge incentives has been dashed.
The Centre has also laid down some conditions to release the funds for the development of seven backward districts (Rs 350 crore) and assistance to capital city (Rs 450 crore).
In its communication to the state government, the Centre said these funds would be released only after receiving the utilisation certificates for the funds already released for that purpose.
The Centre had released Rs 700 crore during 2014-15 and 2015-16 for the seven backward districts, and Rs 1,050 crore for the construction of capital city.
The Centre had repeatedly asked the state government to submit the utilisation certificates.
The AP government claims that the Centre has to release outstanding arrears of revenue gap to the tune of Rs 13,400 crore.
The report submitted to Prime Minister Narendra Modi by AP Chief Minister N. Chandrababu Naidu said that the total revenue gap in the 2014-15 financial year, was Rs 16,200 crore. The Centre has already released Rs 2,800 crore.
According to sources, the Centre has estimated the revenue gap at Rs 7,300 crore against the state government’s claim of Rs 16,200 crore.
With the latest release of Rs 1,176.50 crore, the Centre has so far released Rs 3,976.50 crore as revenue gap assistance. Officials said the Centre will release another Rs 3,323.50 crore in phases.
