Andhra Pradesh government received a shocker from Central Government. Centre clarified about the revised revenue deficit. Centre rejected state government claim of revenue deficit.
AP Government has been requesting to fix the revenue deficit at Rs.16000 Crores for 2014-15. This has now been fixed as Rs.4,117.89 Crores by the Centre.
The Centre said that already Rs.2303 Crores of funds have been sanctioned. Centre also clarified that the expenditure incurred on new projects initiated after new state formation will not be considered as revenue deficit.
Centre has confirmed that it is not going to pay for loan waivers, pensions and power charge waivers.
With this latest development, AP Government is left in the lurch. We need to wait and see how the state will react and whether it will re-appeal.