Center’s eyewash to AP, no respite from overdraft

Andhra Pradesh which is likely to go overdraft from Monday has got some respite from the Center in the last minute. The center had agreed to release the arrears of CST compensation for both the Telugu States. Andhra Pradesh will be getting 600 Crore while Telangana will get 450 Crore.

These funds will be available to both the states from Monday. However the state will continue to go to Overdraft on Monday as the 600 Crore is very small amount to avert the crisis. The state government is likely to get 585 Crore as Overdraft.

The state is hoping that Center will release some more funds by the end of the month or else the state will be in more trouble. This is the only second instance in the history Andhra Pradesh is going for Overdraft. Such is the financial implications of the state bifurcation on Andhra Pradesh.