State Reorganisation - Union's Commitment - Status Report

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The people of all sections of the State of Andhra Pradesh, electronic and print media, and all major political parties have expressed deep dissatisfaction over the incomplete and tardy implementation of the provisions of the law and Union Government’s pledge before the Parliament. The Independent Group of Experts (IGE) has been constituted by Foundation for Democratic Reforms (FDR) to examine the relevant issues in detail and make an Status Report - Union’s Commitment to Andhra Pradesh objective, non-partisan, dispassionate assessment of the current status of implementation of the provisions of the Andhra Pradesh Reorganisation Act, 2014 and Prime Minister’s Statement, and help resolve the issues harmoniously. The issues agitating the public in respect of the implementation of law and Union government’s commitments, and the loss suffered by Andhra Pradesh State on account of anomalies of taxation can be broadly listed as follows: - 15 -
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). - 16 -
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Ministry of Shipping claims that in
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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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State Reorganisation - Union's Commitment - Status Report

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