Naidu govt failed to secure adequate funds for State: YSRCP

The YSR Congress Party (YSRCP) has sharply criticised Chief Minister Chandrababu Naidu and the TDP-led coalition government for failing to secure adequate funds for Andhra Pradesh, despite their role as a key partner in the NDA.
In a media statement, former State finance minister Buggana Rajendranath Reddy highlighted that the Union Finance Minister had announced in the Budget speech that the Union Government would facilitate special financial support through multilateral development agencies, with an allocation of Rs 15,000 crore for the current financial year and additional amounts in future years. However, the details remain vague, particularly regarding the loan and grant components. The allocation for Additional Central Assistance for Externally Aided Projects under demand head 42 is only Rs 8,000 crore for the entire country, suggesting that a significant portion of the Rs 15,000 crore might be in the form of a loan rather than a grant. If it is a loan within the State’s FRBM limit, it may not offer substantial relief, as the State can raise loans under the Net Borrowing Ceiling (NBC) sanctioned by the Central government.
The former minister also criticised the Chief Minister for accepting a special financial package instead of pushing for special category status, which was promised by the then Prime Minister but later diluted. He pointed out that Andhra Pradesh received no additional benefits under the special package compared to other states. He recalled that during an all-party meeting with the central government before the budget, the TDP did not raise the issue of special status for the state.
On the Polavaram Project, the minister noted that according to the bifurcation act, the central government was responsible for its construction, but the then TDP government took it on themselves. The previous government had agreed to complete the project at 2013–14 rates, leading to increased costs due to non-compliance with protocols. The YSRCP government spent three years securing a revised project cost estimate of Rs. 55,656 crore from the Central Water Commission (CWC). The previous government had secured essential funds for the project, and now it is the TDP’s responsibility to expedite its completion.
He also mentioned that the bifurcation act promised Rs. 50 crore annually for each backward district, and the YSRCP had secured most of these funds during their tenure. However, the TDP failed to do so previously. During the TDP’s previous tenure, the NITI Aayog recommended Rs. 2,100 crore, but only Rs. 1,050 crore was provided by the central government for the first three years from 2014–15. Additionally, Naidu had promised a Bundelkhand-style package for the state, which did not materialize. With the TDP now part of the NDA, there is public expectation for them to secure such a package for the backward districts as previously promised.
Regarding the union budget, former Minister Buggana Rajendranath expressed satisfaction with the 11% year-on-year growth in union tax revenues for FY 24, reflecting economic buoyancy. He commended the Centre for its commitment to fiscal consolidation, with the fiscal deficit to GSDP ratio decreasing from 6.4% in 2022-23 to 5.6% in 2023-24, and the Central Government’s aim to reduce it to 4.9% in 2024-25.
However, he noted that while the interim budget had assumed dividend receipts of Rs 1,02,000 crore, the actual dividends received by May 2024 were Rs 2,10,874 crore. Despite this increase, the budgeted capital outlay remains unchanged at Rs. 11.11 lakh crore, which he believes should have been higher given the current low investment-to-GDP ratio.