A.P. missed out on ₹38,000 crore in Central grants following 16th FC recommendations, says Minister
Payyavula Keshav says as the State pressed for financial assistance, the Centre sanctioned ₹15,000 crore for the construction of the capital city Amaravati, ₹12,157 crore for Polavaram project, and 50-year interest-free loans under the Special Assistance to States for Capital Investment scheme
The Minister of Finance for Andhra Pradesh, Payyavula Keshav, has revealed that the state missed out on up to ₹38,000 crore in Central grants following the 16th Finance Commission recommendations. This loss could have significantly helped bridge the revenue deficit, which was ₹16,000 crore in 2014-19 and is projected to widen to ₹48,000 crore by 2025-26.
Keshav explained that the 16th FC recommendations affected all states, and Andhra Pradesh's situation was made particularly difficult due to the previous government's utilization of nearly ₹50,000 crore of Central grants, including those for the 15th FC and the upcoming fiscal year.
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