• Source:JND
Add as a preferred

The YSR Congress party raised concerns about Finance Minister Nirmala Sitharaman’s announcement of a Rs 15,000 crore allocation for the development of Amaravati as Andhra Pradesh's capital city. The YSRC contends that this allocation, as presented by Union Finance Minister Nirmala Sitharaman in the 2024-25 budget, is not a direct grant but rather a loan facilitated through multilateral agencies such as the World Bank.

FM Nirmala Sitharaman while announcing the union budget on Tuesday declared that the government would facilitate special financial support for Amaravati through multilateral development agencies. This funding arrangement, amounting to Rs 15,000 crore in the current financial year, aims to support the capital city's development.

FM Nirmala Sitharaman later in a press conference also stated that the Rs 15,000 crore is not a grant. Instead, it is a loan from the World Bank, with Andhra Pradesh required to repay it either fully or partially, depending on the Centre's modalities. ''The 15,000 crore that we promised to them [Andhra Pradesh], we are getting it for them from the World Bank,'' FM Sitharaman said. This clarification from the finance minister fueled the ongoing political debate in Andhra Pradesh.

ALSO READ: Tamil Nadu CM Stalin's 'You Will Be Isolated' Warning To PM Modi Over Budget: 'If You Run Govt According To...'

The opposition YSRCP criticised the ruling TDP and the Centre for allegedly misleading the public about the nature of the Rs 15,000 crore allocation. The party questioned how Andhra Pradesh, a revenue-deficit state, could manage the debt burden associated with the loan. They accused the Centre of giving nothing substantial to Andhra Pradesh, merely providing a guarantee for the loan.

In response, the ruling TDP emphasised that the Union government's support for Amaravati's construction is mandated by the Andhra Pradesh Reorganisation Act. They assured that the Centre would take full responsibility for the Rs 15,000 crore, regardless of the state's economic condition. The TDP highlighted that central assistance is legally binding and stressed their commitment to the project.

ALSO READ: 'Terrorists Will Either Be In Jail Or Jahannum': Modi Govt Gives Fierce Reply On Rising Terror Incidents In J-K

Amaravati was proposed as the capital city of the reorganised Andhra Pradesh by former Chief Minister Chandrababu Naidu in 2014. Despite initial progress, the project stalled under the subsequent leadership of Y.S. Jagan Mohan Reddy, who proposed a three-capital model for the state. With Naidu's return to power in the recent Assembly elections, Amaravati is back in focus as the state's capital.