Chandrababu Naidu Seeks ₹10,000 Crore Aid, Revenue Deficit Support from Centre

Quick Summary:

• Event: Andhra Pradesh Chief Minister N. Chandrababu Naidu met Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday.
• Request for Funding: Mr. Naidu sought an additional ₹10,000 crore allocation under the special Assistance to States for Capital Investment (SASCI) scheme for FY 2025-26.
• Capital Construction Costs: The total estimated cost of building Amaravati is ₹79,280 crore, with works worth ₹44,351 crore already initiated and ₹26,000 crore mobilized so far.
• Appeal for Revenue Compensation: He reiterated Andhra Pradesh’s request to the 16th Finance Commission for revenue deficit compensation due to financial challenges stemming from the State’s bifurcation.
• Grants Advocacy: Mr. Naidu asked that future fund releases be structured as grants instead of loans and expressed gratitude for ongoing central support toward key infrastructure projects like Amaravati and Polavaram.

Indian Opinion Analysis:

The financial appeal by Andhra Pradesh Chief Minister Chandrababu Naidu underscores the lingering consequences of state bifurcation and highlights resource constraints faced by developing regions in meeting ambitious infrastructure goals. The requested funding aligns with ongoing efforts to expedite capital city construction amid budgetary pressures.

Andhra Pradesh’s reliance on external assistance risks long-term fiscal vulnerability but may also signal necesary collaboration between states and the Union Government in addressing regional development disparities. Any decision by New Delhi on this plea coudl influence intergovernmental fiscal policies while setting a precedent regarding grant-based funding frameworks versus loans.

Such appeals also bring attention to balancing national priorities with state developmental needs-whatever course is taken here will likely resonate beyond Andhra Pradesh.

Read more at The Hindu