Financial Infusion for Andhra Pradesh: Central Government Delivers Significant Support
The central government has provided a substantial financial aid package of Rs 35,492 crore to the Andhra Pradesh government, Union Minister of State for Finance, Pankaj Chaudhary, announced in the Lok Sabha. This comprehensive support encompasses a range of initiatives, from addressing resource gaps to bolstering infrastructure projects.
Breakdown of Central Government’s Financial Assistance to Andhra Pradesh
The financial assistance includes Rs 1,678.76 crore to bridge the resource gap, Rs 1,750 crore for the development of Rayalaseema, the state’s most underdeveloped region, Rs 2,500 crore for the capital city of Amaravati, and Rs 15,147 crore for the crucial Polavaram irrigation project. This substantial investment aligns with the provisions of the Andhra Pradesh Reorganization Act, 2014, which mandates financial assistance from the central government.
In addition to this direct aid, Andhra Pradesh has received over Rs 63,000 crore under various centrally sponsored schemes over the last five years, from 2019-20 to 2023-24. This consistent flow of funds underscores the central government’s commitment to the state’s development and progress.
Concerns Raised Regarding Fund Diversion and Misallocation
Daggumalla Prasad Rao, a TDP member, inquired about potential fund diversion or misallocation during the past five years. He also highlighted the request of Andhra Pradesh Chief Minister N. Chandrababu Naidu for additional financial support to address the state’s financial challenges and stalled infrastructure projects.
Minister Chaudhary acknowledged Naidu’s letter and assured that the central government would carefully evaluate Andhra Pradesh’s request and make an informed decision. He emphasized the availability of centrally sponsored schemes for all states and the importance of adherence to guidelines for their implementation.
Clarification on Fund Allocation and Utilization
The Finance Ministry allocates funds for various schemes, including centrally sponsored ones, through the budgetary process. Any unutilized funds are adjusted against grants-in-aid for the following financial year, ensuring efficient resource management.
However, concerns were raised by TDP member Kesineni Sivanath regarding alleged fund diversion by the previous YSRCP government. Sivanath cited a white paper released on the Polavaram Irrigation Project and Amaravati, which purportedly mentioned instances of corruption. These allegations underscore the need for transparency and accountability in fund utilization.
Key Takeaways:
| Key Point | Description |
|---|---|
| Central government provides Rs 35,492 crore to Andhra Pradesh. | Includes funds for resource gap, Rayalaseema development, Amaravati, and Polavaram project. |
| Over Rs 63,000 crore allocated under centrally sponsored schemes. | Over the last five years, demonstrating commitment to the state’s development. |
| Concerns raised regarding fund diversion and misallocation. | TDP members highlight alleged issues during the previous YSRCP government. |
| Central government assures evaluation of Andhra Pradesh’s request. | For additional financial support to address financial challenges and stalled projects. |
| Emphasis on adherence to guidelines and transparency in fund utilization. | To ensure efficient resource management and accountability. |
Soumya Smruti Sahoo is a seasoned journalist with extensive experience in both international and Indian news writing. With a sharp analytical mind and a dedication to uncovering the truth, Soumya has built a reputation for delivering in-depth, well-researched articles that provide readers with a clear understanding of complex global and domestic issues. Her work reflects a deep commitment to journalistic integrity, making her a trusted source for accurate and insightful news coverage.
