Centre grants Rs.850 crores special package to AP State

The union finance ministry has granted Rs. crore special financial package to the Andhra Pradesh state on Wednesday. This is a temporary relief to compensate the budget deficit of the state for the years 2014-15. Centre has formed a ministers’ sub-committee to study the state financial condition and make necessary recommendations to it for further release of funds to the state.

Finance Ministry also granted Rs.350 crores for the development of   seven backward districts of Rayalaseema and North Costal Region in the state under sections 46(2) and 46 (3) of  AP Reorganization Bill-2014. Hence each district will get Rs.50 crore as its share from this fund.

Centre also announced subsidies for industrial development in the backward districts of AP and Telangana states under section 94 (1) of AP Reorganization Bill-2014.