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Andhra Pradesh CM Chandrababu Naidu pressurises Union Finance Minister Nirmala Sitharaman to increase financial aid for debt-ridden state
Ahead of the presentation of the Union Budget, Andhra Pradesh Chief Minister N Chandrababu Naidu met Union Finance Minister Nirmala Sitharaman on July 5, pressing for increased financial support to the debt-burdened state.
Sources said Mr Naidu, during the meeting at North Block, highlighted several ongoing projects in Andhra Pradesh that require urgent central assistance.
“The CM submitted a detailed memorandum outlining the financial needs of the state and the rationale behind the demand for higher allocation,” sources added.
TDP ministers at the Centre were present during the meeting.
Mr Naidu also met Defence Minister Rajnath Singh and Health Minister JP Nadda.
According to state government data, Andhra Pradesh’s public debt has increased from 31.02 per cent of the Gross State Domestic Product (GDP) in 2019-20 to 33.32 per cent in fiscal 2023-24, indicating deterioration in the state’s fiscal health over the last five years.
Among Mr. Naidu’s main demands were funds for the Polavaram irrigation project, special assistance for backward regions and support for the development of the new capital, Amaravati.
The Prime Minister also sought resolution of pending issues arising out of the bifurcation of erstwhile Andhra Pradesh.
The meeting is important because it takes place just a few weeks before the presentation of the 2024-25 Union Budget.
Sources said Ms Sitharaman listened patiently to Mr Naidu’s concerns and assured him that she will consider Andhra Pradesh’s demands within the broader fiscal constraints.
Mr. Naidu spoke candidly about the State’s financial woes and sought greater central support to overcome fiscal challenges, when he met Prime Minister Narendra Modi and several Union Ministers on Thursday.
The Telugu Desam Party, led by Naidu, is a crucial partner of the NDA, with its 16 Lok Sabha MPs supporting the Narendra Modi-led government.
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