September 8, 2016
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Special assistance under reorganisation law: Centre funds revenue shortfall, infrastructure and Polavaram irrigation execution by the State.
The Central Government sets out fulfilment of commitments under the Andhra Pradesh Reorganisation Act and related instruments by compensating the State's revenue gap, providing targeted grants for backward areas and capital creation, and implementing statutory measures for national projects and fiscal incentives. It will fund 100% of the remaining irrigation component of the Polavaram Project from 1.4.2014 and allow the State to execute the project on behalf of the Centre. The release explains interaction with the Fourteenth Finance Commission and provides a five year special assistance measure via Central funding for externally aided projects, alongside enhanced tax devolution and revenue deficit grants.