Hyderabad: Two days before the AP State Budget for 2015-16 year was to be presented, the TD government received a much-needed boost on Tuesday with Union Finance Minister Arun Jaitley stating that the Centre would release Rs 3,000 crore by the end of the financial year.

Mr Jaitley spoke to Chief Minister N. Chandrababu Naidu over phone and said that the Centre had decided to release Rs 1,000 crore for the construction of the capital immediately and Rs 1,000 crore for construction works of the Polavaram national irrigation project, in addition to the Rs 100 crore announced recently.

The Union minister also said that the Modi-government had decided to release another Rs 1,000 crore to AP to bridge over the Rs 22,000 crore revenue deficit being faced by the state. AP finance minister Yanamala Ramakrishnudu will be presenting the state Budget on Thursday and the assurance by the Union finance minister that Rs 3,000 crore would be released by month end will come in handy for the AP government to project these allocations against the capital city construction, Polavaram and bridging the revenue deficit in the AP Budget 2015-16.

Mr Jaitley also told the CM to have confidence in the Centre as it was committed to fulfil all legitimate promises made to AP.

The Union finance minister asked Mr Naidu to send the Detailed Project Report for construction of the capital city as the Centre would release more money for the capital only after the DPR was submitted.

While thanking Mr Jaitley, Mr Naidu requested to him to immediately release at least Rs 1,500 crore for the capital city project and another Rs 1,500 crore for providing civic amenities and related infrastructure in the capital city area.