Andhra Pradesh sets goals for sustainable development

Amaravati: Despite facing problem of finances since day one after the bifurcation of the state in 2014, the AP government is putting the development agenda on fast-track. 

Though the Centre failed to extend financial support, the state government is constructing the capital Amaravati and the vital infrastructure that the state needs like laying roads of international standard, construction of residential quarters for MLAs, ministers and AIS officials, the Polavaram project and others with the available meagre financial resources. 

According to the statistics of the Finance department, the Central government has provided only Rs 13,523 crore to the state after the bifurcation. It includes amounts released for bridging revenue deficit, Polavaram project, capital city, backward districts funds, Godavari Pushkaralu and others. 

In fact, it is mandatory that the Central government should bridge the revenue deficit estimated at Rs 16,079.76 crore at the time of bifurcation of the state, but it was reduced to Rs 7,500 crore. Even then, the Centre provided only Rs 3,979 crore to the state till date.

On the other hand, the Centre claims that it has to pay Rs 138.39 crore only as balance amount for bridging the revenue deficit. Chief Minister N Chandrababu Naidu’s government is disputing the claim.

The state government has been claiming that the Central government must provide about Rs 20,010 crore as special assistance, with respect to the externally-aided projects. The Chief Minister’s Office said in a statement recently that the state government had submitted proposals for an estimated amount of Rs 18,857 crore. Out of which, the Central government accepted the projects proposals worth Rs 8,349 crore and proposals worth Rs 7,611 crore were still pending.

At this juncture, the Central government further clarified that all these debts would  come under the limit of borrowing set by the FRBM for which the state had raised serious objections. The Central government suggested to the state government to establish the Special Purpose Vehicle for these externally-aided projects, for which also the state government had raised objections.  

The Central government released only Rs 2,500 crore for the construction of capital city Amaravati, though it had originally promised Rs 3,500 crore, according to the Finance department officials. It was supposed to give Rs 1400 crore for the Backward Districts grants for the four-year period, but the Centre had sanctioned only Rs 1050 crore. 

Polavaram project works are being delayed due to insufficient fund flow. The state government has spent more than Rs 7,000 crore to speed up the project works from the state’s own funds since 2014. The Centre had so far given only RS 5,350 crore, though it must fund it fully since it is a national project, according to sources.

By Madamanchi Sambasiva Rao