The BJP claimed that 503 projects in Andhra Pradesh have been included by the Central government in the National Infrastructure Pipeline with a total capital outlay of ₹8,16,583 crore for 2020-25 period. These projects are to be taken up by various Central departments or the State on EPC basis.
It was also mentioned in a booklet released by BJP national president J. P. Nadda at a meeting of the chiefs of Shakti Kendras in Vijayawada on June 6 that the Centre is ready to set up an integrated steel plant in Kadapa district in tune with its commitment to the development of Rayalaseema.
An expert committee constituted by the Steel Authority of India Limited found that the locations identified for setting up the steel plant were not suitable but a task-force formed in its wake found some favourable conditions. Accordingly, the Centre is prepared to establish the steel plant.
The Centre alleged that the State government has not come up with an alternative location for the construction of a seaport after the proposed Dugarajapatnam port was declared unviable. Several railway projects fizzled out due to the non-payment of the State’s share of the total estimated cost of ₹15,847 crore.
That special financial assistance has been sanctioned in lieu of Special Category Status (SCS), for which the 14th Finance Commission made no distinction between the States, but the State has so far not formed a special purpose vehicle to avail the package, was reiterated.
It was also stressed that SCS has nothing to do with the industrial incentives.
As far as the capital is concerned, the BJP said the Centre had given ₹2,500 crore but the YSR Congress government made a mess of it by coming up with the impractical idea of three capitals whereas N. Chandrababu Naidu left it unfinished.
Finances
The Central government allowed Andhra Pradesh to make open market borrowings amounting to ₹19,192 crore (1.90% of the Gross State Domestic Product) over and above the ₹42,472 crore limit (set as per the 15th Finance Commission guidelines) in 2020-21 as the State acquired eligibility for it by implementing some reforms on the Ease-of-Doing-Business (EoDB) front and in the power sector (like installing meters for agricultural service connections), Public Distribution System (one nation-one ration cards) and administration of Urban Local Bodies.
The State government proposed to borrow ₹50,896 crore during the year but it was able to raise ₹61,664 crore due to the progress it had shown in taking forward the Central government’s reform agenda.
It was claimed that the Centre devolved ₹2,04,882 crore to AP from 2014-15 to 2021-22 towards its share of various taxes and grants amounting to ₹2,22,010 crore during the same period. Besides, the Centre provided loans and advances totalling ₹14,094 crore.
While pointing out that so much financial support has been extended, the BJP mentioned in the booklet that the State’s expenditure between 2015 and 2021 crossed the limit of ₹7,10,594 crore by ₹41,820 crore, the total being ₹7,52,414 crore.
The revenue deficit which was ₹28,010 crore in 2015-16, widened to ₹1,15,951 crore due to the implementation of various welfare schemes like Amma Vodi.
