The government has given assistance of Rs 6,403 crore to Andhra Pradesh since the enactment of Andhra Pradesh Reorganisation Act, 2014 to March 31, 2016, parliament was informed on Monday.
“Having considered resources available with the Union Government within gross budgetary support (GBS), since the enactment of AP Reorganisation Act, 2014 up to March 31, 2016, central assistance of Rs 6,403 crore has been provided to Andhra Pradesh under various provisions of the Act,” Planning Minister Rao Inderjit Singh told the Rajya Sabha in a written reply.
The provisions made under Andhra Pradesh Reorganisation Act, 2014 does not specify the quantum of the financial assistance to be provided to the states after bifurcation, he added.
The AP Reorganization Act, 2014 provided for a special development package for the backward regions of the successor state of Andhra Pradesh, in particular for the districts of Rayalaseema (four districts) and North Coastal area (three districts).
Andhra Pradesh had in 2014 requested the central government for providing the special development package to the seven districts of the state, severely hit by revenue deficit.
The 14th Finance Commission also recognised that Andhra Pradesh is revenue deficit state.
As per the assessment made by the Commission, Andhra Pradesh is set to receive post devolution revenue deficit grant of Rs 22,112 crore over its award period (2015-2020), he said.
The central government had advised the state to revise the proposal, following which a comprehensive proposal for Rs 24,350 crore was submitted to the NITI Aayog on January 6, 2016, Singh added.
