"Andhra Pradesh was unwilling and Telangana wanted the division". This was made amply clear by Finance Minister Arun Jaitely who reiterated the Centre's commitment to the state.
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To overcome this, it was proposed last month that a special objective vehicle be created in the state which deals with the development work. "I am confident that if we stand together, we will convince the Centre and PM Modi that what is due to people of state should be given". "The special status used to be originally granted to states in the North East because they have their own resources that were inadequate", Jaitley said. For special category states, the expenses for Centrally sponsored schemes are shared in the 90-10 ratio between the Centre and state compared to the 60:40 ratio in the case of other states. Naidu lashed out at the Centre saying it was "insulting the sentiments" of the people of the state by not honouring the promises made in the AP Reorganisation Act, 2014, and also in Parliament. TDP leaders have been vociferous over the special category status issue since Jaitley presented the Budget on February 1. They staged a protest by holding placards demanding Special Category Status to the State on the premises of Parliament. "We can't have other states earning less than Andhra Pradesh", Jaitley said, stressing that the Centre has no more floating funds and every State has an equal right to money. "We have to look at the country as a whole", Mr Jaitley said. To this, we had proposed that a special objective vehicle in terms of a corporation be set up, where NABARD could deposit money and we would repay funds in the same proportion, so that fiscal deficit of the Centre and state remained unaffected.
Jaitley earlier in the day said his government is committed to giving Andhra Pradesh financial assistance equivalent to a special category state. "The Centre says special category status is not possible", he told reporters during an informal chat in the Assembly lobbies today.
Jaitely added that by one calculation, the state would have got Rs 4,000 crores of which the Centre has paid all but Rs 138 crore for 22 months.