Center Downsizes AP Financial Deficit?

Section 46(2) of AP Reorganization Act mandates Center to cover the revenue gap of AP for the financial year 2014-15. According to audit figures, Andhra Pradesh has got a revenue deficit of 16,079 Crore for that year. However, the Center is not agreeing to this figure and keeping the Revenue deficit to around 6000 Crore.

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Big expenses like Runa Mafi, Increased Pensions, Increased Salaries etc were removed. The state government had cleared several pending arrears to industries to instill the confidence of the investors. Center even refused to take that in to account. These arrears were promised to the United State in the form of various subsidies during YSR Regime but were kept pending.

The other day, the center released 1176 Crore to bridge the revenue deficit of the state. With this, the total amount given in this account will reach 3979 Crore. That means the state is likely to get only another 2021 Crore as per the revenue deficit if the center sticks to its stance of around 6000 Crore revenue deficit.