Union Finance Ministry had finalized the Revenue Deficit of Andhra Pradesh for 2014-15 which according to Andhra Pradesh Reorganization Act has to be paid by the Center. AP Government terms the Revenue Deficit as 13,775 Crore while Center refused to accept it.
Union Finance Ministry clarified in the Parliament that it is just 4117.89 Crore as they refused to take into consideration – Runa Mafi, Increased Pensions and New Schemes. The Center has clarified that 2303 Crore was paid already in this account.
The Center also clarified that the rest of the 1600 Crore will be paid very soon. This has come as big disappointment for the state government which is battling financial woes since the bifurcation and has some big expenses like Amaravati.
