Government assures funds for miffed Andhra
NEW DELHI: The Centre said on Tuesday that it respected the 2014 Andhra Pradesh re-organisation act and was working out an alternative plan to release funds through a special package, a demand raised by the state’s lawmakers in Parliament.
The government’s assurance came after lawmakers of the Telugu Desam Party (TDP), Andhra’s ruling party and an NDA ally, disrupted House proceedings demanding special facilities for the southern state.
“My friends from Andhra Pradesh are well aware that at least I have been fully sympathetic and trying to make sure that every aspect of the Andhra Pradesh re-organisation act and the commitments made by the central government at all stages are honoured. The central government fully stands by it,” finance minister Arun Jaitley said, amid disruptions in the House as several TDP MPs rushed to the well.
“There are two issues … institutions which have to be created, and money under various heads which had to be given. One particular issue is how the amount in lieu of special status or special package has to be paid,” the finance minister said.
Giving more details, he said: “The state had requested for (funds) by way of externally aided programmes, which in the normal central scheme is 60% from the Centre and 40% to be borne by the state. But if it has a special sta- tus, it would have got 90% from the Centre. So the difference is 30%.” He then explained that “in lieu of this 30% in five years, for that amount which is calculated, the state” wanted externally aided projects with Centre’s funding at a 90:10 ratio. “That was agreed upon,” he said.
But the finance minister reminded that externally aided projects are approved by agencies such as the World Bank and these take time.
“So the chief minister has written to me on January 3, saying have it (special package) funded from NABARD (National Bank for Agriculture and Development). But once it is funded from NABARD, it creates a problem with regard to addition to fiscal deficit because in that case the borrowing space of the state itself would be contracted,” he said.
Jaitely said he asked the expenditure secretary on Tuesday to immediately call the finance secretary of Andhra Pradesh to New Delhi and work out procedural formalities.
The House was adjourned twice because of disruptions by Andhra Pradesh parliamentarians, who stormed the well holding placards and shouting slogans, demanding special status to the state. The TDP, the NDA’s third largest constituent with 16 members in the Lok Sabha, is upset over “being ignored” in the Union budget presented on February 1. The BJP’s biggest southern ally was even considering breaking ranks with the ruling coalition, but chief minister N Chandrababu Naidu has set aside any such eventuality so far.ww