It was found that there is discrepancy in the calculation of the Gross State Domestic Product (GSDP) by the AP government and the central statistical office has pushed the former into a tight corner with the Centre putting on hold the state's request to raise more funds from financial institutions.
Meanwhile the AP government has pegged the GSDP at Rs 6,95,000 crore and the Centre in turn has crosschecked the figures with the central statistical office, which has put the figure at around Rs 6,32,000 crore and the State finance department officials have feared that the discrepancy will dent the total market borrowings by about Rs 1,500 crore.
By citing Section 46 (1) and (2) of the AP Reorganization Act, 2014, the finance department has penned two letters to the Union finance ministry seeking special assistance and it has also sought special permission to raise loans from the open market to the tune of Rs 3,500 crore, pending decision on the fiscal responsibility and budgetary management (FRBM) exemption.
The Chief Minister Chandrababu Naidu has planned to meet the PM Narendra Modi and Union finance minister Arun Jaitley by next week to press for special financial assistance to tide over the crisis and he would also seek approval for the GSDP figures submitted by the state government to the Niti Ayog.
