Lok Sabha Question No. 4712 (UNSTARRED), answered on 2019-07-22
Subject: Financial Assistance to Andhra Pradesh
Ministry: FINANCE
Asked by: Margani Bharat

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA UNSTARRED QUESTION No. 4712

TO BE ANSWERED ON MONDAY, July 22, 2019/Ashadha 31, 1941 (Saka)

## Financial Assistance to Andhra Pradesh

## 4712. SHRI MARGANI BHARAT:

Will the Minister of FINANCE be pleased to state:

- (a) whether the  State  Government of  Andhra  Pradesh  is facing  financial crunch after  it  has been bifurcated;
- (b) if so, the details of financial assistance extended to the State in the last five years and the current year, year- wise;
- (c) the details of the demand of Andhra Pradesh towards financial assistance;
- (d) whether the said demand of the State has been fulfilled; and
- (e) if not, the reasons therefor?

## MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

(a) & (b): Y-o-Y growth of Gross State Domestic Product (GSDP) at Current Prices has increased from 13.1% in 2014-15 to 16.1% in 2017-18. As per State Budget-2019-20 documents, Revenue Deficit of the State has decreased from Rs.24315 crore in 2014-15 to Rs.16152 crore in 2017-18 and estimated to be Rs.11655 crore in 2018-19 (RE) and Rs.1779 crore in 2019-20 (BE). Capital Expenditure has risen from Rs. 11409 crore in 2014-15 to Rs.14172 crore in 2015-16, Rs.15181 crore in 2016-17, Rs.13491 crore in 2017-18 and estimated to be Rs.20398 crore in 2018-19 (RE) and Rs.32293 crore in 2019-20 (BE). The details of financial assistance extended to the successor State of Andhra Pradesh  in terms of the Andhra Pradesh Re-organisation Act, 2014 in the last five years is enclosed as Annexure-A.

(c)  to  (e)  A  charter  of    demands  dated  26.05.2019  including  fiscal  challenges  faced  by  the successor State of Andhra Pradesh and Special Category Status have been received from Chief Minister, Andhra Pradesh, which have been submitted to the 15 th Finance Commission for their consideration.

******

## ANSWER

## Annexure referred to in reply to Lok Sabha Unstarred Question No. 4712 to be answered on 22.07.2019

## Releases made to the Successor State of Andhra Pradesh post bifurcation

(Rs. in crore)

| Central Assistance provided under Andhra Pradesh Re-organization Act, 2014               | Central Assistance provided under Andhra Pradesh Re-organization Act, 2014                           | Central Assistance provided under Andhra Pradesh Re-organization Act, 2014   | Central Assistance provided under Andhra Pradesh Re-organization Act, 2014   | Central Assistance provided under Andhra Pradesh Re-organization Act, 2014   | Central Assistance provided under Andhra Pradesh Re-organization Act, 2014   | Central Assistance provided under Andhra Pradesh Re-organization Act, 2014   | Central Assistance provided under Andhra Pradesh Re-organization Act, 2014   |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| Provisions of APRA, 2014                                                                 | Items identified for providing 'Special Assistance'                                                  | Releases                                                                     | Releases                                                                     | Releases                                                                     | Releases                                                                     | Releases                                                                     | Total upto FY 2018-19                                                        |
| Provisions of APRA, 2014                                                                 | Items identified for providing 'Special Assistance'                                                  | 2014-15                                                                      | 2015-16                                                                      | 2016-17                                                                      | 2017-18                                                                      | 2018-19                                                                      | Total upto FY 2018-19                                                        |
| Section 46(2)                                                                            | Resource gap                                                                                         | 2303.00                                                                      | 500.00                                                                       | 1176.50                                                                      | -                                                                            | -                                                                            | 3979.50                                                                      |
| Section 46(2) & (3) and 94 (2): special for backward areas.                              | Development Grant for 7 backward districts of the State covering Rayalaseema and North Costal Region | 350.00                                                                       | 350.00                                                                       | 350.00                                                                       | -                                                                            | -                                                                            | 1050.00                                                                      |
| Section 6 & 94 (3 & 4): Central support for creation of new capital city                 | Assistance for Capital City for Development of essential infrastructure etc.                         | 1500.00*                                                                     | 550.00                                                                       | 450.00                                                                       | -                                                                            | -                                                                            | 2500.00                                                                      |
| Section 90(1) Polavaram Irrigation Project is hereby declared to be a National Project** | Polavaram National Project on Irrigation                                                             | 250.00#                                                                      | 600.00^                                                                      | 2514.70#                                                                     | 2000#                                                                        | 1400#                                                                        | 6764.70                                                                      |
| Sub Total                                                                                | Sub Total                                                                                            | 4403.00                                                                      | 2000.00                                                                      | 4491.20                                                                      | 2000.00                                                                      | 1400                                                                         | 14294.20                                                                     |
| Special Assistance Measure                                                               |                                                                                                      |                                                                              |                                                                              |                                                                              |                                                                              | 15.81 $                                                                      | 15.81                                                                        |
| Grand Total                                                                              | Grand Total                                                                                          | 4403.00                                                                      | 2000.00                                                                      | 4491.20                                                                      | 2000.00                                                                      | 1415.81                                                                      | 14310.01                                                                     |