ANDHRA CLOSE TO RESOLVING BUDGET ISSUES WITH CENTRE

HYDERABAD/NEW DELHI: A feud between Andhra Pradesh and the central government over financial assistance appeared to be close to a resolution with the Telugu Desam Party (TDP) and the Bharatiya Janata Party (BJP) announcing on Saturday the contours of a broad plan for the southern state.

The central government is working on alternative plans to pay Andhra Pradesh for assistance promised under special category status and will make up for the state’s revenue deficit until 2020, the BJP and the TDP said.

At a press conference in Delhi on Saturday , BJP spokesperson GVL Narasimha Rao and Andhra party president K Hari Babu presented a 27-page note detailing measures and assistance given by the Centre to the southern state. Key among them is the promise of a special development package and alternative measures after the 14th finance commission scrapped the class of a “specialcategory state”.

The BJP note detailed ₹22,113 crore to be paid as revenue deficit, Rs 1,000 crore for the new capital of Amaravati, full funding for the irrigation component of the Polavaram project over the Godavari river, and a total investment of Rs 1 lakh crore on infrastructure.

“Funds are being given and will continue to be given. There are some new demands, and work is underway to ensure that they are also given. Discussions are underway between us and the state government,” said a senior officer in the Union finance ministry.