AP government to get Rs 7k cr from Centre
The Centre has agreed to release Rs 7,000 crore to Andhra Pradesh as Central Sales Tax compensation for financial year 2010-11, state Finance Minister Yanamala Ramakrishnudu said in Hyderabad today.
Hyderabad: The Centre has agreed to release Rs 7,000 crore to Andhra Pradesh as Central Sales Tax compensation for financial year 2010-11, state Finance Minister Yanamala Ramakrishnudu said in Hyderabad today.
"I have taken up the issue with Union Finance Minister Arun Jaitley and he has assured that the amount will be released by February," Mr Ramakrishnudu said.
The Centre has to release a sum of Rs 13,000 crore to (undivided) Andhra Pradesh as CST compensation from 2010-11 to 2012-13. Out of this, Andhra Pradesh's share is estimated to be Rs 7,000 crore and the rest would go to Telangana.
"The Centre will first release a sum of Rs 1,300 crore, pertaining to 2010-11 fiscal, to Andhra Pradesh and Telangana by February and the balance after the Union Budget," Mr Yanamala said.
Asked about the release of Rs 16,000 crore, which the Andhra Pradesh government has been claiming as revenue deficit caused by the bifurcation of the state, Mr Yanamala quoted Arun Jaitley as saying, "We will comply with the (Andhra Pradesh Reorganisation) Act".
"No specific assurance was given in this regard since a process has to be followed," Mr Yanamala said.
He said the Centre is considering the proposal to grant special category state status to Andhra Pradesh and also grant of various incentives as promised during bifurcation.
"We are pursuing the issue with different departments at the Centre. We are hopeful that something will come through soon," the state finance minister said.
On the proposed Goods and Services Tax, he said that Andhra Pradesh could lose a revenue of Rs 7,000 crore in five years once it was implemented. "But the Centre has promised to compensate this loss once the GST comes into force in 2016," Mr Yanamala said.