As the clamour for Special Status for Andhra Pradesh grows, Central government seems to have initiated damage-control steps. In an attempt to pacify, Union Finance Minister Arun Jaitley stepped in and stated that Union government would provide financial support only to AP notwithstanding government’s decision on granting Special Status to AP.
Admitting that AP is revenue-deficit state, Arun Jaitley on Wednesday stated that AP gets financial support to meet revenue losses for five years. While replying to a debate on Supplementary Demand for Grants in Lok Sabha, Jaitley made aforementioned comments.
“Andhra Pradesh is the only among the large states which has to be given special assistance for 5 years because bifurcation of the state has made it a revenue-deficit state. And that is a solemn commitment that we as a country have towards Andhra because it is one of the performing states,” Jaitley said in Lok Sabha on Wednesday.
Assuring members from Andhra Pradesh, Jaitley said the Centre would not only fund the deficit but would provide assistance to the state for developing infrastructure and building capital city for the new state. He added that AP has to set up new capital, secretariat, High Court, Raj Bhawan etc for which centre is providing support.