Finance Minister Arun Jaitley in his budget speech made a vague announcement regarding the Center’s help to the poor finances of Andhra Pradesh. There is no mention of the promise of Special Status to the state. However Jaitley confirmed that the center is committed to the promises made to Telangana and Andhra Pradesh in State Reorganization Act.
The Finance Minister also mentioned that the center is extend a special financial assistance to Andhra Pradesh, West Bengal and Bihar states. However he did not allocate any specific amount to the above said finance assistance.
It is not clear if this financial assistance is in addition to the recommendations of 14th Finance Commission. This vague statement of the Finance Minister will further complicate the woes of the Andhra Pradesh state which is witnessing falling revenues due to the state bifurcation.
