12K crores allocated for Andhra Pradesh ‘special assistance’

The Central Government informed the Parliament, on Wednesday, that a total of Rs. 12,476.76 crore has been released as special assistance to Andhra Pradesh. This amount also includes a sum of Rs. 2,500 crore for establishment of Amaravati, the new capital city of Andhra Pradesh.

Mr. Hansraj Gangaram Ahir, the Union Minister of State for Home, said that the Central Government

and the State Government have constantly been working together. Mr. Ahir confirmed that work related to Schedule IX, X and XIII of the AP Reorganization Act (APR Act, 2014) is under progress and the State Government is being consulted over the issue.

As reported by NDTV, in a write up to the Rajya Sabha, Mr. Ahir said, “Government of India has released a total amount of Rs. 12,476.76 crore as special assistance to the State of Andhra Pradesh, which includes Rs. 2,500 crore for establishment of the new capital city of Andhra Pradesh.”

In addition to this, Mr. Ahir also said that the State Government has also communicated to the Central Government on the release of development grants, resource gaps, and the Polavaram project, among other issues apart.

The 14th Finance Commission recommended an enhanced devolution of 42 percent of the Central Government’s tax revenues to states to cover the resource gap.

He was also quoted saying, “In case of Andhra Pradesh, the Commission recommended that the Central Government would provide revenue deficit grant of Rs. 22,113 crore for a period of five years, in addition to the enhanced tax devolution. Funds have been released to Andhra Pradesh on this account for 2015-16 and 2016-17.”