February will pose a significant challenge to Andhra Pradesh as the truncated state is in neck deep financial troubles. The 14th Finance Commission’s report will be submitted to the Center and it will be known how many funds will be sanctioned to the state. Also the Union Budget will be tabled towards the end of the month.
The State is expecting a financial package from the center in the first week of February. The state faces significant challenged with 15500 Crore deficit budget slowing mounting to 20000 Crore deficit. Also the expenses of the Capital construction will come up and the state is seeking at least 1000 Crore for now.
It will be a challenge politically for Naidu to steer the state in this mess especially with Center not cooperating on expected lines. He will be under severe pressure if the funds crunch is not checked as people pinned lot of hopes on him for developing the state and building a World class capital to it after being deprived of Hyderabad.
