Centre rejects the revenue deficit of AP Govt

Vijayawada, Aug 09: The Andhra Pradesh government has received a shock from the Central Government. The Centre has clarified about the revised revenue deficit and rejected state government claim of revenue deficit here on Wednesday.

The AP Government has been requesting to fix the revenue deficit at Rs.16000 Crores for 2014-15. This has now been fixed as Rs.4,117.89 Crores by the Centre.

The Centre said that already Rs.2303 Crores of funds have been sanctioned. Centre also clarified that the expenditure incurred on new projects initiated after new state formation will not be considered as revenue deficit.

Centre has confirmed that it is not going to pay for loan waivers, pensions, and power charge waivers. With this latest development, AP Government is left in the lurch. We need to wait and see how the state will react and whether it will re-appeal.