Union Budget – 2016 AP gets raw deal

Monday, February 29, 2016

  • No allocation for new State Capital Amaravati

The Union Budget 2016 that was presented by Union Finance Minister Arun Jaitley on Monday had nothing for the State as far as allocations are concerned.

Not heeding a single request made by the State Government prior to budget, Arun Jaitley has only allotted nominal funds. There was no fund allocation for the AP State capital Amaravati and also no mention was made about Special Category Status to the State or special financial package as was promised by Prime Minister Narendra Modi. However, Jaitley only mentioned that all the promises made to the State will be materialized.

The Centre has allotted Rs.22,236 crore in the budget as against Rs.28,776 crore as was recommended by the 14th Finance Commission as State share. Every month, the Centre allots around Rs.2,000 crore to the State under tax devolutions and due to short fall of revenue, the Centre will cut Rs.343 crore in March. For Vijayawada Metro Rail Project, the Centre has allotted Rs.106 crore as its equity share and only Rs.3 lakh for the Vizag Metro Rail Project. For Central and Tribal universities, a mere allocation of only Rs.1 crore each was made. On Polavaram, the Centre has indicated that the state government that whatever amount tit spends would be reimbursed.

Allocations made to State:

  • Vijayawada Metro Rail Project – Rs.106 crore
  • Vizag Metro Rail Project – Rs.3 lakh
  • Central University – Rs.1 Crore
  • Tribal University – Rs.1 core
  • IITs – Rs.20 crore
  • IISER (Tirupati) – Rs.40 crore
  • IIT(Tirupati) – Rs.40 crore
  • IIM (Vizag)-Rs.30 crore
  • NIT (Tadepalligudem) – Rs.40 crore
  • Petroleum University – Rs.2 crore
  • Interest subsidy for industries – Rs.50 crore

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