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Copy Paste Revenue Numbers by AP !


Copy Paste Revenue Numbers by AP !

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How AP Got Special 5 Year Financial Status Already


20th February 2014

Andhra Pradesh Re-organization Bill passing the then Prime Minister of India has given assurance to grant 5 year special status to the residuary state of Andhra Pradesh.

At this time Andhra Pradesh and Telangana were entitled to 8.5% of Central Funds devolution to States. If the population ration rule applied for division of common assets and liabilities were 58 : 42 would have been applied which meant

Andhra Pradesh : 4.93 % Telangana 3.57 %

States share at this point was only 32 % of Central Taxes.

as a result Central Govt had bit arbitrary Special Category Status mechanism to address some small and vulnerable states for viability of governance.

This process routed through Planning Commission of India.

August 2014

PM Narendra Modi Government Scraps Planning Commission of India.

15th December 2014 

14th Finance Commission submitted it report to President (ie Govt of India)

it not only increased states share in central taxes from 32% to 42% that most are aware of it also tried to make Income Distance Criteria of State more important for eligibility of Central devolution giving 50% to remove the arbitrary Special Category Status that became Political Hot potato and its recommendation resulted in higher share for Low Income states and lower share for higher income states.

February 2015

 

Prime Minister Narendra Modi Government Accepted entire recommendations in toto.

14th Finance Commission as mandated by Andhra Pradesh Re-organization Act also made complete assessment of Andhra Pradesh and Telangana Financial situation and made 5 year forecast and came up with clear recommendation of  in addition to the higher devolution for the low income Andhra Pradesh state as compared to Telangana, its projected revenue deficit to be reimbursed by Center.

Result

Andhra Pradesh Share was : 4.305 %

Telangana was only : 2.437 %  (Big reduction)

and Andhra Pradesh will get Rs 22,113 crore over five year period to bridge its revenue deficit.

In essence, Andhra Pradesh already got Special Financial Status for five years and its Revenues and Fund Flow from Center is already following the new status and also Telangana got Special Financial Disincentive of having higher income.

With this practically the core concern of Andhra Pradesh state with Telangana statehood is already addressed and the then Prime Minister assurance in the Rajya Sabha has been almost met and the so called special category status has become redundant or non existent for any new state to avail of under the current rules and regulations under which Government of India works.

Let the Facts be told ..