Centre committed to pay back every rupee AP lost due to split, says Jaitley

Image courtesy: PIB

Union finance minister Arun Jaitley said at the Rajya Sabha on Tuesday that the union government will fulfil all promises made to Andhra Pradesh during the bifurcation of the united state into Telangana and residual AP.

“All commitments made towards Andhra Pradesh in letter and spirit would be fulfilled,” Jaitley told the House after the leader of opposition Gulam Nabi Azad (Congress) questioned the government’s delay in granting AP special status. The biggest concern during the split was about Hyderabad’s fate, as both AP and Telangana wanted the capital city.

Azad reminded the current government about the former prime minister Manmohan Singh’s promise at the time of the state’s division to grant AP special status for 5 years so as to redeem the revenue deficit. Singh had also promised to help build a new city and extend fiscal help to underdeveloped regions especially Rayalaseema and certain regions in northern Andhra.

Congress members including KVP Ramachandra Rao, Renuka Chowdhury, JD Seelam trooped into the well of the House, raised slogans and demanded the government’s response. 

Responding to the Congress members’ outcry, the finance minister said, “Centre is fully committed to helping the newly created state after bifurcation of Andhra Pradesh. There are several commitments, which are involved in the AP Reorganisation Act. Centre is going to honour each one of those commitments in letter and spirit.”

Jaitley highlighted the funds that the Centre had sanctioned thus far and said that some projects were in advanced stages. Referring to the revenue deficit, he said, “Each paisa or rupee of this revenue deficit is being paid to Andhra Pradesh. We will continue to pay that.”

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