Eight months after the division of Andhra Pradesh (AP) and the formation of Telangana, the residual state’s finances touched the an all-time low forcing the state government to halt all development activities besides putting a big question mark on its ambitious river front state capital in Guntur.
The state that began its tryst with destiny after Telangana was created, sent an SOS to the Centre as it succumbed to the Rs 16,000 crore budget deficit.
Chief Minister Chandrababu Naidu, who has a MA degree in Economics from Sri Venkateswara University of Tirupati, revealed on Tuesday that his government has cut capital expenditure and stopped certain development works due to financial problems.
Naidu, in fact, has taken up the issue of dwindling coffers with Union Finance Minister Arun Jaitley at Davos recently. Naidu was there in Davos to drum up support from investors to set up industries in AP to kickstart the economy.
He reminded Jaitley about the assurances given by the earlier UPA government and then by the NDA about helping the state by conferring a special status so that many industries will set up units in the state for tax benefits.
“Everyone knew that the residual state will have to live with a deficit and the new Telangana state will have Rs 16,000 cr surplus. The government then committed on the floor of the Parliament that it should confer special status to AP,” Naidu said, concealing his dissatisfaction with the NDA government.
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