VIJAYAWADA: Chief Minister N Chandrababu Naidu has directed officials to ensure full utilisation of Central government funds without compromise, stressing that departments must begin spending allocations from the very first quarter.
Addressing the 7th District Collectors’ Conference at the Secretariat, Naidu said each department should spend an average of Rs 8,000 crore per quarter. He emphasised that no concessions should be made in utilising Central funds and urged departments to maximise opportunities to secure additional allocations.
The Chief Minister underlined that this approach is crucial given the State’s current financial situation, reiterating that effective use of Central schemes is essential for sustaining welfare and development programmes.
During the session, Finance Secretary D Ronald Rose first presented a comprehensive review of Centrally Sponsored Schemes (CSS).
He reported that for 2025–26, the Centre allocated Rs 15,031 crore, of which Andhra Pradesh secured Rs 11,465 crore (76%).
Out of this, Rs 9,980 crore was utilised, but nearly Rs 5,051 crore (34%) lapsed due to changes in budget estimates, delays in fourth-quarter releases, low utilisation, and rejection of bills by central ministries.
Ronald Rose praised departments such as Law, Municipal Administration & Urban Development, and Higher Education for their strong performance, ensuring minimal lapses.
District-wise, Ambedkar Konaseema and West Godavari topped with 99% utilisation, followed by Srikakulam and Palnadu at 98%, while Alluri Sitaramaraju, Parvathipuram Manyam, and Eluru lagged behind, prompting instructions for special focus.
He also flagged Rs 438 crore unspent in SNA accounts, particularly under PM Awas Yojana (Urban & Rural), PM Poshan, and Anganwadi services, urging immediate utilisation. Issues with the SPARSH portal were highlighted, with bills worth Rs 828 crore (Rs 491 crore Central share, Rs 337 crore State share) rejected in March 2026 due to technical reasons and lack of funds at the Centre.
He directed state secretaries to write to Central authorities to secure ‘mother sanctions’ in the upcoming financial year.
Looking ahead, Ronald Rose said the State expects Rs 26,020 crore under various schemes for 2026–27, with Rs 3,609 crore already sanctioned. Under the SASCI scheme (Special Assistance for Capital Investment), Andhra Pradesh was eligible for Rs 10,452 crore last year but received only Rs 8,290 crore, with lapses in urban planning and mining sectors.
He projected that reforms in telecom, agriculture stock, livestock, and solid waste management could help secure Rs 7,026 crore in SASCI funds, while improving public health indicators such as Infant Mortality Rate (IMR), Maternal Mortality Rate (MMR), and TB deaths could fetch an additional Rs 650 crore in incentives.
Ronald Rose specifically noted that ‘every rupee from the Centre must be channelled into development and infrastructure projects such as the Akhanda Godavari Project, Gandikota development, and Unity Mall in Visakhapatnam.’
Building on this presentation, Chief Minister Naidu directed departments to act proactively and ensure no Central fund lapses.
He urged officials to pursue NITI Aayog viability gap funding under PPP, implement the PM e-Bus scheme with electric buses in Amaravati, Visakhapatnam, and Tirupati, establish fast-charging stations, modernise bus stations, and operate EV buses along key corridors, including Vijayawada–Guntur–Amaravati, Visakhapatnam–Anakapalli–Vizianagaram, and Tirupati region routes.
Chief Minister Naidu also asked various departments to focus on projects taken up under the Urban Challenge Mode.