Jaitley Rejects Special Status for Andhra, Offers Special Package

Arun Jaitley said that while special status states as a concept did exist when Andhra Pradesh was bifurcated.

File photo of Finance Minister Arun Jaitley.

(Photo Courtesy: Lok Sabha TV)

Facing threats from ally TDP, Finance Minister Arun Jaitley on Wednesday ruled out granting Special Category Status to Andhra Pradesh but said the government was ready to give monetary equivalent of the same in the form of a special package.

Government is ready to give monetary equivalent of the special status to Andhra Pradesh. Instead of calling it special status, we’re calling it a special package.

Arun Jaitley, FInance Minister

The Telugu Desam Party has threatened to quit the NDA alliance if the state is not granted the special status as was promised when the state was bifurcated in 2014. Hours after Jaitley’s press conference, Andhra Pradesh Chief Minister Chandrababu Naidu's announced that his party ministers will be pulling out of the NDA government.

Naidu said Jaitley's announcement was the "last straw" for the TDP to take a call about withdrawing the party ministers from the Modi cabinet . He maintained that Jaitley’s statement was “nothing but insulting” to the people of Andhra Pradesh.

Jaitley added that while special status states as a concept did exist when Andhra Pradesh was bifurcated but after the implementation of the 14th Finance Commission recommendations the status was constitutionally restricted to the North-East and three hilly states.

Notwithstanding that, Jaitley said that since Andhra Pradesh “had suffered” after its bifurcation, it needed financial assistance which his government was committed to provide. He said the state will get monetary equivalent of what they would be entitled to under the special status

Jaitley said the only facility that Special Category States now enjoyed was this 30 per cent advantage which could be calculated in monetary terms and given to the state.

The Finance Minister said that Andhra Pradesh earlier wanted those funds via externally aided programmes mechanism, but now wanted it to be routed through National Bank for Agriculture and Rural Development.

We’re open to that as well but a method has to be evolved wherein it doesn’t affect the fiscal deficit of either state or Centre.

Arun Jaitley, Finance Minister

Jaitley said the government had repeatedly said it was willing to give the monetary equivalent of the special status to the state and was waiting for the Andhra Pradesh government's response.

Asked about meeting revenue-deficit of the state, the Finance Minister said the central government had already paid Rs 4,000 crore."Only Rs 138 crore is the balance."

(With inputs from IANS)