Center’s new way to evade filling AP’s deficit

Central government is mandated to cover the revenue deficit of Andhra Pradesh for the first year after the bifurcation, according to the AP Reorganization Act. Andhra Pradesh government had put up the deficit up over 16000 Crore. Later CAG verified the accounts and decided that the deficit will be around 15000 Crore.

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Usually CAG calculations are valid even for the central government. But the center is refusing to take it in to consideration and like never in the past, is offering to make the calculations itself. The center is planning to keep down the defict to about 3300 Crore citing expenses to various welfare schemes and Runa Mafi.

The center already gave 2800 Crore for revenue deficit and it is planning to distance itself from this by giving another 500 Crore. Union Finance Ministry officials are reportedly harrasing the state officials in the name of more details. We have already seen the center not allowing even loans to the state. Taking all this consideration, we can easily sense Center’s insensitive attitude to the state.