Andhra Pradesh Chief Minister N. Chandrababu Naidu has requested Rs 1 lakh crore in financial assistance from the Centre for various projects including the construction of the state's capital city. Recently, Naidu met with Prime Minister Narendra Modi and other Union Cabinet ministers in Delhi to discuss the state's progress and seek their support. It is reported that Modi has agreed in principle to provide financial assistance to Andhra Pradesh, considering Naidu's Telugu Desam Party's (TDP) alliance with the BJP-led NDA at the Centre.
Naidu's proposed financial package includes several components such as an increase in the fiscal deficit ceiling, additional borrowing for infrastructure projects, funds for debt clearance, and allocations for specific projects like Polavaram and Amaravati. He highlighted the state's financial challenges, including expenditures on salaries, pensions, and debts, with Andhra Pradesh's public debt increasing to 33% of its GDP by the end of the fiscal year 2024.
The release of the requested funds from the Centre, expected to be addressed in the upcoming budget, will be crucial for addressing Andhra Pradesh's financial needs and supporting its developmental projects.