The Finance Commission’s recommendations for Andhra Pradesh were not to the satisfaction of Chief Minister N Chandrababu Naidu, who said that the funds would not be enough to meet the state budget deficit.
The commission had identified Andhra Pradesh, along with 10 other revenue deficit states, for the allocation of funds. It recommended that Andhra Pradesh be given Rs 22,113 crore over five years, which accounts for 11.38 per cent of the amount allocated to the eleven states.
Naidu did not welcome the move and insinuated that the state was not on a “level-playing field” after its bifurcation to form Telangana. However, he did appreciate the increase of 10 per cent in the tax share from the Union government income to the states.
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