Andhra’s RS 10,000 crore may go north

Apart from Andhra Pradesh, the other Southern States, West Bengal and a few more States would also be affected if the proposal becomes a reality.
The cash-starved State of Andhra Pradesh is likely to lose a revenue of Rs 8,000 crore to Rs 10,000 crore per annum. (File | Reuters)
The cash-starved State of Andhra Pradesh is likely to lose a revenue of Rs 8,000 crore to Rs 10,000 crore per annum. (File | Reuters)

VIJAYAWADA:  The cash-starved State of Andhra Pradesh is likely to lose a revenue of `8,000 crore to `10,000 crore per annum if the proposal of the 15th Finance Commission for sharing of Central revenue with the States as per the 2011 Census instead of the 1971 Census gets the green signal.

Thanks to the effective implementation of family planning, the State government’s revenue is likely to take a beating. The revenue losses may accumulate in the next few decades.Apart from Andhra Pradesh, the other Southern States, West Bengal and a few more States would also be affected if the proposal becomes a reality.

However, Telangana is likely to get some relief as its population has witnessed a considerable growth due to continuing migrations from Andhra Pradesh and other States. Telangana may suffer a loss of not more than `1,000 crore per year. The States like Gujarat and Maharashtra are not likely to have any impact.When contacted by TNIE, former Chief Secretary of Andhra Pradesh Ajeya Kallam observed that the Southern States, West Bengal, and a few more States were supposed to lose a revenue of `1 lakh crore every year going by the proposal of the 15th Finance Commission. Even as the revenues of these Stats increase every year, they would also incur significant losses concomitantly, he opined.

“The seeds of it were sown by the 14th Finance Commission which recommended 10 per cent additional  funds for more populous States. It will be an injustice to those States which had implemented family planning effectively in the past,” he said.Similar observations were made by state Finance Minister Yanamala Ramakrishnudu during a teleconference with Chief Minister N Chandrababu Naidu on Saturday, while seeking permission for attending Southern States Finance Ministers’ meet to be held in Kerala on April 10.

The former Chief Secretary observed that though several parameters like the extent of forest cover, left-wing extremism and per capita income apart from population that need to be considered, population was the factor that would get more weightage. Going by this,Andhra Pradesh, because of its population control measures implemented in the past, would stand to lose substantially in the future. The State, from 2010 to 2015, received `1,17,967 crore Central funds (including share in taxes, grants-in aid, local bodies grants, state disaster response funds), while it stands to get `2,44,271 crore from 2015 to 2020. Now, if the proposal of the 15th Finance Commission is implemented, how much would it get is million dollar question.

Meanwhile, speaking on the ‘injustice’ done to Andhra Pradesh by the Centre, Chandrababu Naidu said: “Will other political parties stand by the Chief Minister who is fighting for the rights of the State or will they support the Centre which is doing injustice to the State? Will they stand by BJP which has neglected the sentiments of the people?. It is for them to decide,” he said, adding that those in favour of AP would support him. 

Cong wants aiadmk, trs to join no-trust group
Senior Congress leader and former minister JD Seelam said the party would hold talks with the AIADMK and TRS to convince them to see that notice of no-confidence motion against the NDA government in Parliament would be admitted on March 27. Speaking to reporters in Vijayawada on Sunday, he said the Congress had been stating from the beginning that it will support no-confidence motion moved against the Centre by any party. 

“But the two parties from the State have failed to convince other parties protesting in Parliament. We are certain that we will be able to convince them,” he said. Commenting on Amit Shah’s letter to TDP chief N Chandrababu Naidu, Seelam said the letter is full of distortion of facts. He questioned the silence of the BJP chief over funds for R&R and land acquisition for the Polavaram project

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com