The Central government had clarified that it will only release 138 Crore more as the Revenue Deficit of Andhra Pradesh for 2014-15. The central government has confirmed that it will not cover expenditure incurred prior to this period, including the payment of PRC arrears.
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The expense will also not include the expenditure incurred on certain new schemes introduced by the state governments during this relative period. Andhra Pradesh puts the first year revenue deficit to about 16000 Crore but the center is going to release only 7000 Crore.
Andhra Pradesh Reorganization Act mandates the Central Government to reimburse the first year revenue deficit of Andhra Pradesh after the state bifurcation. Three years after the bifurcation, the state and center are yet to arrive at a consensus on the same.
