In a blow to the Telugu states of Andhra Pradesh and Telangana, share of both in devolution of Central revenues will further dip for the next five years, beginning from the 2021-22 fiscal.
As per the recommendations of the 15th Finance Commission, the share of AP in devolution will fall from 4.31 per cent to 4.04 per cent, and last year’s revised share of 4.11 per cent as recommended by the 14th Finance Commission. In the case of Telangana state, Central devolution will drop from the previous 2.37 per cent to 2.1 per cent.
In the current fiscal also, AP will receive Rs 9,000 crore less than the estimated Rs 32,000 crore from central pool of funds and TS about Rs 5,000 crore from the estimated Rs 16,000 crore.
The silver lining for Andhra Pradesh, however, is that it will get a revenue deficit grant of Rs 30,000 crore in the next three years. This will be out of the Rs 2,94,514 crore country-wide revenue deficit grant. The pre-devolution deficit in AP…