AP gets Rs 10,460 crore from Centre as compensation towards revenue deficit

VIJAYAWADA: Chief Minister Y.S. Jagan Mohan Reddy’s efforts towards getting additional funds from the Union Government yielded results as the Centre released Rs 460.87 crore as compensation towards revenue deficit.

The funds were released in relation to the dues under the Andhra Pradesh Reorganisation Act, 2014.

The YSR Congress, while recalling the failure of the Chandrababu-led TD government to get prompt release of funds from the Centre, are claiming that CM Jagan Mohan Reddy succeeded in getting funds because he maintained healthy relations with the Centre.

The CM had held a series of meetings with PM Narendra Modi in recent times, when he pressed for release of the funds that were promised to the state at the time of bifurcation. Jagan Mohan Reddy had stressed that this financial aid would accelerate the overall development and welfare of the state and its people.

Mahendra Chandelia, assistant director at the ministry of finance, has directed the immediate release of Rs 10,460.87 crore under the 'Special General Financial Assistance' category, as part of the revenue deficit in the financial year 2014-15.

YSRC leaders said the Centre usually released funds in installments. However, this time, a huge grant has been released in one go. This was the biggest ever grant since the bifurcation, they claimed.

These funds would be used to finance development projects and for welfare schemes related to education, housing and healthcare.

Adviser to the government Sajjala Ramakrishna said the compensation of revenue deficit is the state's right and the Centre's responsibility. This compensation had been given only due to CM Jagan Mohan Reddy's persistence, determination and his credibility, Ramakrishna Reddy said.

MLA Perni Venkatramaiah said, “Naidu during his regime had utterly failed to convince the Centre to release the rightful dues to the state. Today, he and his aides are unable to digest the fact that funds are flowing into the state effectively.”

 He added, “In fact, the lack of AP’s cordial ties with the Centre during the TD government and the lack of any inflow of funds from the Centre from 2014-2019 were proof of Chandrababu's incompetence. Despite being an alliance partner, he held the state hostage for his personal interests and failed at getting funds for the state.”