Admits quite high expectations, various sections in Andhra Pradesh, besides ruling alliance TDP-BJP leaders are seen shocked with raw deal given to the state in the Union budget, particularly absence of any reference to its mammoth projects like construction of the capital city Amaravati, Polavaram project, Railway Zone in Visakhapatnam, statutory backing for special package, steel plant in Kadapa and allocation of funds for bridging the revenue deficit.

Though Chief Minister N Chandrababu Naidu seems to be upset with the budget, remained silent and only congratulated the Prime Minister and Finance Minister for providing a new direction to the country.

The only silver lining is that farmers who have surrendered their land to the State government for construction of the capital city would have exemption from payment of capital gains tax, should they sell the plots being allotted to them by the APCRDA. Even this is being interpreted by the Opposition in a different way.

Except making an allocation of Rs 7 crore for the Central University coming up in Anantapur and Rs 5 crore for Tribal University, no other allocation was found for other major projects in the state. Though it has been widely expected that the budget would reiterate the benefits that the Centre would grant to the State in lieu of special category status, there was no such mention.

The TDP -BJP combine in the State was expecting this in the wake of protests for special category status. As the clamour for special category status grew, the TDP leaders kept saying that they would persuade the Centre to give statutory backing to the special package.

The ruling TDP had urged the Centre in the past to honour all the commitments listed in the AP State Reorganisation Act, 2014, including bridging the revenue of Rs 16,000 crore that had formed when the State was divided. The Centre, had so far paid only Rs 4,000 crore but the Chief Minister said he had a commitment from the Centre that it would pay another Rs 3,000 crore soon.