Wednesday, February 19, 2014

Center duty-bound to meet deficit of Residuary Andhra Pradesh: Dr.JP

The Union Government is solely responsible for addressing the revenue deficit the residuary Andhra Pradesh will face as a direct consequence of its decision to create Telangana, said Lok Satta Party national President Dr. Jayaprakash Narayan here today.

Addressing a media conference, Dr. JP disclosed that leaders of both the ruling UPA and the main Opposition BJP have welcomed the specific suggestions made by the Lok Satta Party to address the deficit issue and promised to incorporate them in the Andhra Pradesh Reorganization Bill.

Dr. JP said that the Union Government seems to be trying to wriggle out of its commitment under the pretext it involves huge expenditure.

The Lok Satta Party had conclusively established that the residuary Andhra Pradesh will face a revenue deficit of Rs.7000 crore according to 2012-13 data and perhaps Rs.10000 crore at present, whereas Hyderabad city which forms part of Telangana will have a surplus of Rs.13000 crore. How does the Center which opted for Andhra Pradesh bifurcation expect the residuary Andhra Pradesh to carry on its administration with such a huge deficit?

Dr. JP demanded that the Union Government should take care of residuary Andhra Pradesh’s deficit for the next 10 years by making provisions in the reorganization Bill. Has not the Union Government claimed that it is undertaking bifurcation for ensuring the progress of the two States?

Dr. JP reiterated his suggestion that Rayalaseema and North Coastal Andhra be treated on par with Special Category States and extended excise and corporate income tax concessions and investment and freight subsidies to promote industrialization. Development of Ramayapatnam port and the building of a new capital in less than 10 years are the other suggestions made by the Lok Satta.

Dr. JP said that the Constitution should be amended if the Governor were to be entrusted with law and order as was done in the case of Arunachal Pradesh.

Dr. JP maintained that the UPA used a blunt bludgeon and a battle axe instead of a sharp scalpel to carve Andhra Pradesh into two States and ignored the consequences flowing out of its action. Even now, it is not late to do justice to all the regions of the State by adopting the amendments suggested by the Lok Satta.

Dr. JP acknowledged that the Union Government has accepted its suggestions on execution of the Polavaram project, continuation of ongoing Krishna river projects in both the regions, establishment of a 4000 mw thermal power station and construction of roads in Telangana and providing fast connectivity between Hyderabad and the new capital of residuary Andhra Pradesh.

Dr. JP pointed out that the people have paid a heavy price for the unbridled and unabashed quest for power of the traditional parties. Politics should revolve round people and not leaders. Politics should result in administration being taken to people’s door-step, elimination of corruption, eradication of poverty, provision of quality education and healthcare to all, maintenance of rule of law, creation of jobs and livelihoods. The need of the hour is political leadership with integrity, maturity and competence.

Dr. JP appealed to people to utilize the Lok Satta as their platform and become partners in rewriting the grammar of politics. He wanted the media to re-instill confidence in people in their future and not fuel their despair and disappointment over the recent developments.

Replying to a question, he said imposition of President’s rule is ideal in the wake of Mr. Kiran Kumar Reddy’s resignation as Chief Minister.

Lok Satta leaders Irama Murthy, Nandipet Ravinder and Mohd. Ghose took part in the media conference.


  1. Why should center meet the deficit? If every deficit state asks for handouts, what will happen to central financial position? Why can't the deficit states resort to fiscal management (e.g. eliminate unviable projects)?

  2. Residual A.P never asked for the division, it is forced on it, now it is the responsibility of the center to take care of its financial deficit.