State Reorganisation - Union's Commitment - Status Report

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Status Report - Union’s Commitment to Andhra Pradesh Table 0.2 Post-Devolution Revenue Deficit Surplus Rs. in Crore * Deficit is shown as (+), and Surplus is shown as (-) Source : Fourteenth Finance Commission Report - 13 -
When a State is partitioned, division of assets has to necessarily be on geographical basis. In the absence of balanced regional development in the erstwhile Andhra Pradesh, excessive focus on Hyderabad City and political and economic centralization, most of the productive assets remained in the Telangana State. Consequently, large new investments and public expenditure are needed in Residual Andhra Pradesh to build institutional capability. Also, while much of the development in erstwhile Andhra Pradesh was in and around Hyderabad City, the debt liabilities had to be divided on population basis at the time of division of the State, imposing heavy burden on the public finances of the larger, but resource-poor Residual Andhra Pradesh. Similarly, pension liabilities arising from the combined State had to be divided on population basis forcing higher burden on Residual Andhra Pradesh despite lower revenue base. Residual Andhra Pradesh has the lowest per capita income among the Southern States and the gap remains three years after the division of the State. Given these special circumstances, the Andhra Pradesh Reorganisation Act, 2014 made specific provisions to address the concerns and needs of the people of the Residual State of Andhra Pradesh (Annexure-1). In addition, the Prime Minister made a solemn statement on 20 February 2014 making explicit commitments to address the concerns of all regions of the erstwhile State of Andhra Pradesh, particularly of Seemandhra (Successor State of Andhra Pradesh).The anomalies in respect of recovery of arrears of taxes and duties remain unaddressed by the existing law as well as the Union Government’s solemn pledge in the form of Prime Minister’s Statement in Parliament (Annexure-2). Figure 1 Source : AP Government’s Detailed Note on Issues Related to AP ReorganizationAct, 2014 dated 12 January 2018 submitted to Prime Minister - 14 -
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Ministry of Shipping claims that in
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Table 7.1 Status Report - Union’s
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to Amaravati City shall be expediti
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Mines, connects the pilgrim town of
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A techno-economic feasibility repor
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(iv) Petrochemical Complex Governme
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The Ministry of Finance, Government
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Other Government Infrastructure Sta
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Progress / Developments Consequen
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per annum and maintain it at that l
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T AFTERWORD Status Report - Union
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State Reorganisation - Union's Commitment - Status Report

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