AP Report 2019-final

Resource Gap for the Year 2014-15
1. Resource Gap for the Year 2014-15
Commitments of Government of India:
Section 46 (2) of the Andhra Pradesh Reorganisation Act, 2014
“(2) Notwithstanding anything in sub-section (1), the Central Government
may, having regard to the resources available to the Successor State of
Andhra Pradesh, make appropriate grants and also ensure that
adequate benefits and incentives in the form of special development
package are given to the backward areas of that State.”
Para 6 of the Prime Minister’s statement in Parliament on 20
February 2014
“Sixth, the resource gap that may arise in the successor state of Andhra
Pradesh in the very first year, especially during the period between the
appointed day and the acceptance of the 14th Finance Commission
recommendations by the Government of India, will be compensated in
the Regular Union Budget for 2014-15.”
Chronology of events:
20 March 2014
- The Governor of the erstwhile State of Andhra Pradesh wrote to
the Union Minister of Finance on 20 March 2014 (Annexure-3),
while the State was under President’s Rule, urging constitution
of a Joint Committee of senior officials of Planning Commission
and Ministries of Finance and Home, and Government of Andhra
Pradesh to estimate the likely Resource Gap of the Successor
State of Andhra Pradesh between 02 June 2014 and 31 March
2015. This exercise was necessary for making a provision for a
grant in the Union Budget for FY 2014-15 to bridge the Resource
Gap of Andhra Pradesh State. Accordingly, Government of India
constituted a Joint Committee with officials of Planning
Commission and Ministries of Home Affairs and Finance, but
without officials of Andhra Pradesh (Annexure - 4).
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