New Andhra Pradesh faces Rs.15,000 crore deficit budget
June 1, 2014 - Hyderabad
After bifurcation of Andhra Pradesh on June 2, the residuary Andhra Pradesh faces a financial deficit of Rs.15,691 crore while the newly formed Telangana State with a surplus budget of Rs.3,555 crore for the financial year 2014-15.
Andhra Pradesh Chief Minister designate Nara Chandrababu Naidu during his visit to Delhi made a strong bid for the special package and financial assistance to the fledgling Seemandhra districts. Though UPA government has promised the special category status, sources say that it requires discussion in the Planning Commission followed by National Development Council.
The special category status proposed for a period of five years is expected to put the State's finances on a firmer footing. The tax incentives are intended to promote industrialization and economic growth in both the States. The special package includes expansion of physical and social infrastructure in the backward regions. The proposed setting of a AIIMS type super speciality hospital cum teaching institute and National Institute of Disaster Management in the State besides tribal university one each in both the States.