The Narendra Modi government’s decision on Tuesday to disburse a whopping Rs 10,460.87 crore to Andhra Pradesh as compensation towards revenue deficit for the year 2014-15 is considered to be the biggest success of the Y S Jagan Mohan Reddy government.
The grant, the biggest-ever since the bifurcation of combined state in 2014, was released as part of dues to the state towards revenue deficit under the Andhra Pradesh Reorganisation Act, 2014.
Mahendra Chandelia, Assistant Director at the Ministry of Finance directed that the release of Rs 10,460.87 crore be done immediately under the 'Special General Financial Assistance' category, as part of revenue deficit in the financial year 2014-15.
Though the previous Telugu Desam Party government led by then chief minister N Chandrababu Naidu also repeatedly pursued the issue of reimbursement of revenue deficit to the state government, the Modi government turned a blind eye.
But, the Centre has heeded to the persistent pressure being put by Jagan Mohan Reddy whenever he met Modi and other central leaders for the compensation amount.
Jagan repeatedly pitched for the release of funds which were promised to the state at the time of bifurcation.
During the meetings he also insisted that this financial aid would accelerate overall development in the state and ensure welfare for each and every citizen.
The Centre usually releases such grants in instalments. However, this is first time that such a huge grant has been released in one go. In fact, it is the biggest ever grant since bifurcation.
These funds will be used to finance a variety of development projects, including infrastructure development on one hand and welfare including education, housing, healthcare schemes on the other, an official statement from the CMO said.
Expressing happiness over the grant of funds, Advisor to the Government of Andhra Pradesh, Sajjala Ramakrishna Reddy stated that this compensation had been sanctioned only due to CM Jagan's persistence, determination and his credibility.
He added that these funds were not only the right of the State Government but also the responsibility of the Central Government.
Sajjala said it was a slap on the face of all those who questioned CM Jagan's frequent trips to Delhi.
“During his regime, Naidu 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. So now, instead of rejoicing for the people, they will spend all their energy in spreading poison and fake news,” he said.
The lack of cordial ties with the Centre during TDP government and the lack of any inflow of funds from the Centre from 2014-2019 is proof of Chandrababu's absolute incompetence. Despite being an alliance partner, Chandrababu held the state hostage for his personal interests and failed at getting funds for the state, he said.
