Ahead of the Union Budget presentation on July 23, Andhra Pradesh chief minister N Chandrababu Naidu has undertaken a crucial mission to secure a financial package for his state. Naidu's two-day visit to Delhi primarily focuses on meetings with central ministers to advocate for much-needed fiscal support.
Naidu's agenda includes discussions with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. During his meeting with Shah, Naidu highlighted the critical financial situation of Andhra Pradesh, which has been aggravated by the previous government's mismanagement and corruption. He emphasized that Andhra Pradesh's public debt had increased from 31.02% of its Gross State Domestic Product (GSDP) in 2019-20 to 33.32% in 2023-24.
Naidu took to social media to underscore his concerns, saying, "Today in New Delhi, I met with the Hon'ble Union Home Minister, Shri @AmitShah Ji, to apprise him of the devastating condition of finances that Andhra Pradesh had slipped into over the past five years. I also discussed the findings of the four White Papers released, outlining the staggering debt accumulated between FY 2019-24 that spiralled our State's finances out of control. Economic incompetence, gross mismanagement, and rampant corruption by the previous government have caused irreparable damage to our State."
Naidu's visit highlights the pressing requirement for central assistance to tackle the state's financial difficulties. He proposes a specific financial package instead of the previously sought "special status" for Andhra Pradesh. The main objective is to secure substantial allocations in the upcoming budget, including establishing a petrochemical hub and an oil refinery and creating a development fund for underdeveloped regions.
A crucial part of Naidu's request is the division of assets under the Andhra Pradesh Reorganisation Act. Despite Andhra Pradesh being divided almost a decade ago, several institutions and assets still need to be divided. The recent political change in Telangana, with Revanth Reddy as Chief Minister, has reignited efforts to resolve these issues, but central intervention is necessary.
Naidu is also advocating for the speedy development of the international airport at Vijayawada and the implementation of central drinking water projects. His party, the Telugu Desam Party (TDP), holds significant influence with its 18 MPs in the Lok Sabha, making Naidu's demands crucial for the central government.
The state government's financial data reveals a worrying trend, with outstanding liabilities rising from ?2,64,338 crore in 2019 to ?4,85,490 crore by March 2024. The fiscal health of Andhra Pradesh has been deteriorating, and the devolution of funds from the Centre has seen a minimal increase. The state received ?94,747 crore in 2023-24, up from ?91,094 crore the previous year, insufficient to meet its needs.
Naidu's visit to Delhi is his second in 10 days, highlighting the urgency of his mission. His previous visit on July 4 saw him present a seven-point development agenda to Prime Minister Narendra Modi, addressing the state's post-bifurcation challenges. Naidu's persistent advocacy aims to secure a comprehensive recovery plan to stabilize Andhra Pradesh's economy.
A key part of Naidu's strategy involves using his party's alliance with the BJP-led National Democratic Alliance (NDA) to his advantage. The TDP's support is vital for the central government, and Naidu is using this partnership to push for Andhra Pradesh's financial requirements. His call for a significant financial package addresses the state's immediate fiscal issues and securing long-term development and stability.
In addition to financial support, Naidu is also advocating for the completion of key projects like the Polavaram irrigation project and the development of the new capital, Amaravati. These projects are vital for the state's growth and are high on Naidu's agenda. The successful completion of these projects would boost Andhra Pradesh's economy and fulfil the promises made to its people.
Naidu's push for increased funding echoes a similar effort by JD(U) national working president Sanjay Kumar Jha, who met with Sitharaman on Monday to request higher allocations for Bihar in the upcoming Budget. TDP and JD(U) are essential members of the BJP-led NDA. TDP is using its coalition partnership to advocate for Andhra Pradesh's financial needs ahead of the Union Budget 2024.
During his previous visit to Delhi, Naidu discussed the state's urgent financial needs with Shah and other Union ministers, including Sitharaman.
Last week, Naidu requested financial support from the union budget from Finance Minister Nirmala Sitharaman to help Andhra Pradesh overcome its economic challenges. According to state government data, its public debt increased from 31.02% of its Gross State Domestic Product (GSDP) in 2019-20 to 33.32% in 2023-24. He also appealed for special assistance for the state’s underdeveloped regions, funding for the Polavaram irrigation project, and help developing the new capital, Amaravati.
The negotiations are becoming more complicated due to the political dynamics within the NDA and the upcoming Union Budget. The central government must balance fiscal discipline with the political necessity to support its key allies.
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