The Modi government stopped giving financial support to AP for the past three years. Political differences led to Centre’s indifference in the last two years of TDP Regime. But things have not improved even in the last nine months despite CM Jaganmohan Reddy’s frequent visits to meet Modi-Shah. In this financial year till January, Centre released just Rs. 13,558 Cr as against the expected Rs. 61,071 Cr. It is just 22 per cent of the expected collections from the Centre. This wide gap added to the already dwindling revenues within AP, eventually causing alarming crisis.

Officials are worried that only 48 per cent of the total expected revenues was achieved by January-end. Only two months are remaining for this financial year. There is the threat of further erosion in revenues. Only Rs. 85,987 cr was collected as against the expected overall year-long expected collection of Rs. 1,78,697 cr for 2019-`20 financial year. Stamps and registrations revenue is badly hit because of serious real estate crisis due to Capital shifting. Excise revenue has fallen despite opening government’s own outlets. GST and tax collections are also meagre. Experts say that AP crisis is increasingly alarming because of Jagan cash transfer programmes despite poor revenues.