Loss of Hyderabad city is a major blow to finances, says chief minister of newly created state
GN Bureau | September 2, 2015
Andhra Pradesh chief minister N Chandrababu Naidu has said that the state is eminently qualified for Special Category Status (SCS) by virtue of unviable nature of the state finances, and also because of economic and infrastructure backwardness.
Making a statement on the issue in the legislative assembly on Tuesday, he not only sought special status but also a special package. The chief minister wanted the centre to support the state till it achieved a level-playing field on par with the neighbouring States.
Trying to throw more light on the technicalities, he said that central government has not abolished the distinction between special category and general category states. It is evident from the 14th finance commission report that AP would be the only state, other than the special category states that would have subsisting revenue gap even in 2019-20, and potentially afterwards, Naidu said.
The case of AP for special status has become stronger following the centre’s decision to recast the centrally-sponsored schemes.
He singled out the UPA government for the “whimsical’’ manner in which the united state was divided, he said the reorganisation act and its hurried implementation created serious negative consequences to the new state.
He said the loss of Hyderabad city, which has been a major source of revenues to the pre-bifurcated State, left AP with only 47 per cent of revenues to support 59 per cent of the population of the united state. He expressed his anguish that different criteria were followed for division of assets and liabilities between the two states.
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