AP News Online

Modi’s Crude Shock To AP Government

TDP leaders in Andhra Pradesh are upset with the BJP government at the centre.. they are alleging that they are doing injustice to the new Andhra Pradesh. The latest decision of the centre rejecting the permission to obtain credits for the AP state has become a big controversy. Chandrababu is said to be severely upset with the centre because.. one way Centre is not issuing funds.. on the other is it is denying permission to the AP to raise funds through credits.

AP is suffering from funds crunch after the state bifurcation. As the majority of the income comes from Hyderabad.. and it has gone to Telangana after bifurcation, Telangana became a surplus state whereas AP became a deficit state. On top of it, AP doesn’t even have the capital. To come out of the situation, AP government said to have written a letter to the Central government requesting to go for loans locally and internationally to spend for the construction of the capital and state development. They said to have also requested the central government to provide funds, in case they don’t give permission for international loans. The Central government said to have rejected both the proposals as per the information.

As per the FRBM laws, any state is eligible to go for loans only 25% of their state income. But AP has already exceeded that limit and it is at 29% in 2014-15.. this year the figure is 27.04%. Apart from this, they are getting ready to go for loans for from Singapore and other countries for the construction of the capital Amaravati. When they have approached central government, they have clarified to the AP government that they have already exceeded the credit limit and they can not be allowed to go for further loans. This decision has come as a shocker to the AP government.

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