Nothing Special to AP

​New Delhi: Union Finance Minister Arun Jaitley refused to yield on the Special Status despite several members cutting across political parties making an emotional demand to this effect.

Instead of making an explicit assurance that the Centre will honour the then Prime Minister’s commitment to Parliament, the erudite Finance Minister enlisted reasons for denying special status to Andhra Pradesh. The constitution creates hurdles.

As per the Constitution of India, Finance Commission is appointed to define the devolution of central funds to states. The 14th Finance Commission redefined the financial architecture of Centre-State finances.

The new financial architecture creates constitutional hurdles in the way of according special status to Andhra Pradesh, argued Arun Jaitley. Replying to a short duration discussion on the subject in Rajya Sabha, the Finance Minister said that the central government is also under fiscal duress.

The global recession, recurring drought, the burden of seventh pay commission and finally 10 percent increase in central resources for states have imposed fiscal constraints on the Centre too, he added.

Jaitley said that the central government was sympathetic to the concerns of Andhra Pradesh and conscious of the Prime Minister’s assurance on the subject. It will compensate Andhra Pradesh, he added.

Jaitley’s explanation provoked the Congress members who introduced the short duration discussion on implementation of assurances given to AP, including the Special Status, to stage a walkout. Digvijay Singh led the walkout stating that Congress was unhappy with the government’s reply.

Earlier, dispelling notions of according the Special Status to AP, the Finance Minister said, however, "the Centre was ready to hand-hold AP till it develops into a viable State. A number of commitments have been made in the Act right from raising special police forces, to water issues to High Court to Capital to Polavaram and all these would be met".

He denied any neglect or partisan attitude in extending help to the State. "In fact, it is a State ruled by our own ally. Do not make Special Status an emotional issue. It is easier in populism to seek this or that. India is a Union of States not a confederation.

How can the Centre say this is my friendly party and let us give more to them. No Government could do it, be it the NDA or the UPA. There could be no arbitrary sanctions. The division has created a situation of revenue deficit in AP. That is because of the 13th Finance Commission which was in force for 10 months after the bifurcation".

The central government differs with the assessment of Andhra Pradesh government on the resource gap. The bifurcation act states that the Centre has to fill the revenue deficit of the new state of Andhra Pradesh.

Continuing with his reply Jaitley said that there is a difference of opinion in regard to the assessment of resource gap faced by the Andhra Pradesh government and the Centre.

“Andhra Pradesh government stated some figure. The Centre is examining it,” said the finance minister adding soon there would be some convergence.

When Sitaram Yechury interrupted to ask the Minister to be specific on Special Status issue in terms of a yes and no, the latter said he was just stating a Constitutional position in view of the recommendations of the 14th Finance Commission.

When YSRCP MP Vijay Sai Reddy pointed out that its recommendations were not mandatory and an executive order would do to accord the Status to AP as was done in the past to Uttarakhand, the Finance Minister said: "if you say it is only recommendatory and not mandatory shall we ignore it?

What happens to the Federal structure then? We have to somehow resolve it".