Special assistance given to Andhra Pradesh in lieu of SCS: Centre
The SCS for plan assistance was granted, in the past, by the National Development Council (NDC) to States that were characterised by a number of features necessitating special consideration - Pankaj Chaudhary, Union Minister of State for Finance
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Visakhapatnam: Indirectly putting at rest the hopes rekindled on consideration of Special Category Status to Andhra Pradesh after NITI Aayog Vice Chairman Rajiv Kumar hinted the studying of the demand by Bihar due to its poverty level, the Central Government has made it very clear that in lieu of SCS, AP has been given special financial aid.
It may be recalled that the NDA ally and JDS president Nitish Kumar hard-pitched for SCS to Bihar after the State was placed at the bottom among the poorest States by NITI Aayog. The plan panel vice-chief had also gone on record saying that Bihar's demand will be given a consideration.
Bihar in the Centre's policy think tank released its first Multi-dimensional Poverty Index (MPI), ranked Bihar as the poorest State in India with 52 per cent of its population not having any access to basic needs like health, education and drinking water. Nitish Kumar had first raised the demand for special status way back in 2006. Now Nitish Kumar wants the demand to be conceded based on the report brought out by the Centre's own policy think tank.
In a bid to corner the YSRCP, which had made SCS one of its main poll planks in 2019 to defeat Telugu Desam Party, Leader of Opposition N Chandrababu Naidu had asked Chief Minister YS Rajasekhara Reddy to ask all his MPs to resign to exert pressure on the Centre to grant SCS. Naidu said his MPs would follow suit if YSRCP MPs decide to quit over SCS demand.
In another tactical move, film actor and Jana Sena president Pawan Kalyan had conducted a three-day digital campaign, which concluded on Monday asking YSRCP MPs to display placards in Parliament to press for SCS. Union Minister of State for Finance Pankaj Chaudhary on Tuesday in response to an un-starred question by YSRCP parliamentary party leader V Vijayasai Reddy admitted that Chief Minister Jagan Mohan Reddy had reiterated at the recent meeting of NITI Aayog the demand for SCS to AP.
Chaudhary said that AP was given Rs 19,846.19 crore as per AP Reorganisation Act, 2014 by the Department of Expenditure, Ministry of Finance. On the basis of recommendation of successive Finance Commissions to compensate revenue deficit, a grant of Rs 22,112 crore was given for 2015-20 and Rs 5,897 crore for 2020-21.
The Minister said that the SCS for plan assistance was granted, in the past, by the National Development Council (NDC) to States that were characterised by a number of features necessitating special consideration. These features include: (i) hilly and difficult terrain (ii) low population density and/or sizeable share of tribal population (iii) strategic location along borders with neighbouring countries (iv) economic and infrastructural backwardness and (v) non-viable nature of State finances.
"The decision was based on an integrated consideration of all the factors listed above and the peculiar situation of the State. The Union Government being committed to support the development of the successor State of Andhra Pradesh and keeping in mind the obligation emanating from the Andhra Pradesh Reorganisation Act, 2014, the recommendations of the Finance Commissions; the report dated 01.12.2015 of Vice Chairman, NITI Aayog on "Developmental support to the successor State of Andhra Pradesh under Andhra Pradesh
Re-Organisation Act, 2014" and the request of the successor State provided the Special Assistance Measure to Andhra Pradesh, which would make up for the additional Central share the State might have received during
2015-16 to 2019-20, if the funding of Centrally-Sponsored Schemes (CSS) would have been shared at the ratio of 90:10 between the Centre and the State," the Minister pointed out.
Chaudhary informed the YSRCP MP in a written reply that the Special assistance will be provided by the way of repayment of loan and interest for the Externally Aided Project (EAPs) signed and disbursed during 2015-16 to 2019-20 by the State. An amount of Rs.19,846.19 crore under the Andhra Pradesh Reorganisation Act, 2014 was released by the Department of Expenditure, Ministry of Finance to Andhra Pradesh. Further, as per the recommendations of the respective Finance Commissions Revenue Deficit Grant of Rs 22,112 crore for 2015-20 and Rs 5,897 crore to the State for the year 2020-21 has been released.
