Sources in Andhra Pradesh government tells us that Center has finalized the help to be provided to Andhra Pradesh state which is in severe financial crisis after the state bifurcation. Covering up the deficit budget, Help for the Capital Construction, Special Packages to Rayalaseema and Uttarandhra are the prime demands of AP and also promised in the Reorganization Act.
Starting with Special Status, Center is not giving it at least in this budget. But Center may agree to fund projects with Foreign help to the extent of 70% subsidy and 30% loan.Andhra Pradesh has shown a deficit of more than 15000 Crore in its first budget, but Center will be giving only 2000-3000 Crore.
For the backward Rayalaseema and Uttarandhra regions, Center is planning to announce few subsidies and incentives for the industries being established here. Also the seven districts in both the regions are expected to get 100 Crore each (700 Crore in total). This is no where near the Bhundelkhand type of package asked by AP.
Also the center is not going to allocate big amount for the capital construction and will be giving mere 700-1000 Crore as of now. Chandrababu Naidu has a huge task on his shoulders to fulfill Capital dreams and repeat his development magic he did with Hyderabad in the past with the meager financial support from Center.
