Center’s Deficit in AP’s Deficit Budget

Central government reportedly is going to give only 5000 Crore more for the first year revenue deficit of Andhra Pradesh. The state government had put the revenue deficit at 16,079 Crore and only release 2303 Crore so far in this account. Center only agreed to release 5000 Crore out of the remaining 13776 Crore.

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The Union Finance Ministry refused to pay the remaining amount saying that they would not give any funds to the new schemes introduced by the state government which includes loan waiver, social security pensions and power subsidy to industries and assistance to discoms and incentives for industrial promotion etc.

Center is also not going to give this 5000 Crore at a time but will only give this amount in phases. This decision of the BJP led central government will just compound the problems of the cash strapped Andhra Pradesh.