YSRCP Slams TDP for AP State Allocations in Union Budget 2024

YSRCP slammed Chief Minister Chandrababu Naidu and TDP Coilation government for failing to secure funds for Andhra Pradesh despite being a key partner in the NDA. 

In a statement released to the media, AP former finance minister Buggana Rajendranath pointed that the Union Minister for Finance has stated in the Budget speech that, the Union Government will facilitate special financial support through multilateral development agencies. In the current financial year Rs. 15,000 crore is stated to be arranged, with additional amounts in future years. On bare reading of this, the impression is that this is nothing but regarding the Amaravati Capital City Project as an EAP (Externally Aided Project). There is no specific mention as to what is the loan component and grant component.

However, under demand head 42, which deals with transfer to States, the amount allocated for the entire Country under the head Additional Central Assistance for Externally Aided Projects is only Rs. 8,000 crores. Therefore, we can surmise that only a small portion of the Rs. 15,000 crores amount, if arranged, would be in the form of a grant, the rest would only be a loan. If it is indeed a loan and if it does fall within the FRBM limit of the State then there is indeed no real help being done to the State by this provision, as the State can indeed raise loans with little difficulty within the NBC (Net Borrowing Ceiling) sanctioned by the Central Government.

He mentioned that the promise of special status for Andhra Pradesh was made by the then Prime Minister in Parliament, but was later diluted and slammed Chief Minister for welcoming a special financial package instead of special category  status and reminded that Andhra Pradesh received the same benefits as other states under the special package, with no additional benefits. He reminded that during the all-party meeting conducted by the central government before the budget, the TDP did not mention the issue of special status for the state. 

Regarding the Polavaram Project, the former minister said according to the bifurcation act, the central government should have constructed the Polavaram Project, but the then TDP government took it into its own hands. The previous government accepted to complete the project at 2013–14 rates, which significantly increased the project cost due to non-compliance with protocols. The previous YSRCP government had to fight for three years to get the revised project cost estimate of Rs. 55,656 crore approved by the Central Water Commission (CWC).
He said the previous government have secured approval for the essential funds for the project and added that It is now TDP's responsibility to complete the project quickly. 

He said the bifurcation act promised Rs. 50 crore annually for each backward district and YSRCP secured most of these funds during the previous government, but TDP failed to do so previously. He said during  TDP previous  tenure, the NITI Aayog recommended Rs. 2,100 crore, but the central government provided only Rs. 1,050 crore for the first three years from 2014–15. He reminded that okNaidu also promised a Bundelkhand-style package for the state, but it did not materialize. Now that TDP is part of the NDA, people expect them to secure a Bundelkhand-style package for the backward districts as they previously promised.

In regard to the union budget, former Minister Buggana Rajendranath said it is heartening to note that, in FY 24, the nation has witnessed a healthy union tax revenues year of year growth of 11%, this reflects on the economic buoyancy of the Country.  Further, the Centre should also be commended for its conviction to achieve fiscal consolidation, with the fiscal deficit to GSDP ratio reducing from 6.4% in 2022-23 to 5.6% in 2023-24 and now the Central Government conveyed its resolve to reduce the same to 4.9% in 2024-25.

Buggana added, however, it is observed that during the time of the passing of the interim budget, the receipts on account of dividends were assumed to be Rs. 1,02,000 crores. In May 2024, GOI received dividends to the tune of Rs. 2,10,874 crores as dividend. With this, there was an estimate that the budgeted capital outlay would be increased. However, it remains the same at Rs. 11.11 lakh crores. Higher capital outlay would have been more preferable given the prevailing low investment to GDP ratio.