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AP's financial situation to become worse

27th February, 2015 2:31pm     Andhra Pradesh      Comments  

AP's financial situation to become worse

Ever since the new state of Telangana has been carved out with Hyderabad as it's capital, the truncated state of Andhra Pradesh is going through one of its difficult phase. Although it's initially expected that AP would have financial crunch, with Centre not living up to its promises and not acting as per the AP Reorganisation Act 2014, the latest is that the financial situation of AP is going to be worse and would be declared as cash-strapped within 5 years.

As per an estimation, after five years, Andhra Pradesh is estimated to have a deficit of Rs 22,112 Crore whereas all its neighbouring states would be flourishing with surplus budgets, cash-rich capital cities.

Telangana likely to have Rs 1,18,678 Crore surplus, Tamil Nadu Rs 82,743 Crore surplus, Karnataka Rs 1,66,164 Crore surplus, Orissa Rs 57, 759 Crore surplus. Except Andhra Pradesh, all other neighbouring states are expecting to do well. Naidu, who expressed his severe dissent on 14th Finance Commission openly by not meting out justice to AP, alleged that Centre failed to do "balancing". He also asked whether is this the "equal justice"? Now the ball is in Centre's court.

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