Central Government's Shocker: No Tax Exemption For AP

The Central Government has done it again. It has clearly backtracked on the issue of compensating the Andhra Pradesh Government for the loss of revenue caused by bifurcation. The Centre in a categorical reply said that special status was a closed chapter and added that no tax discount can be given to Andhra Preadesh. In a reply to a question raised by MP Avinash Reddy, the Government said that there would be objections from other states if exemptions are given to Andhra Pradesh. Union Minister Nitin Gadkari said that decisions cannot be taken only for Andhra Pradesh and that any decision taken on AP will have nation-wide repercussions.

With this it is now clear that Centre will not come forward to support the AP Government in any which way He however said that incentives would be given to industries if the AP Government comes forward with concrete proposals. It now remains to be seen what YS Jagan will do to marshal resources for the development of the state. The AP Government is in a financially critical position  as it is suffering from acute budget deficit.

Jagan has always battled for the special status for Andhra Pradesh. He has waged a relentless battle for the cause. However, with the Central government adopting an uncompromising stand, it remains to be seen how Jagan manages his resources and marshals additional resources.