Centre puts 500 Cr on hold to AP

Union government had so far released 2300 Crore to bridge the revenue gap in the 2014-15 financial year. The center promised to release another 500 Crore in the last month of the financial year but sought several details like expenditure on subsidies in the year, details of the expenditure on development works under plan and non-plan and also the expenditure on several schemes.

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The state government already sent the details but to date, the Center has not released Rs 500 crore as promised. Officials say the finance officials in Delhi indirectly indicated that there will not be any more funds towards outstanding arrears of revenue gap which is a major cause of worry for the state.

The Accountant General (AG) finalized that the revenue gap in the 2014-15 financial year was about Rs 16,200 crore. According to the Andhra Pradesh Reorganization Act, Center should bridge this revenue deficit. But Center is finding new ways to evade from its duties until now much to the distress of the state.