The Finance Department seems to be confident that the package announced earlier would be better than the special status. Only the package could be implemented and remaining guarantees could not be given.
TDP leaders told the Finance Minister Arun Jaitley to give special status and tax concessions in the crucial meeting yesterday. Instead of the special status, the Finance ministry is looking forward towards the package. If the subsidies given to the northeastern states are also given to Andhra Pradesh, the backward states like the UP, Bengal and Bihar will also demand the same.
The Finance Ministry said it will take a decision on tax concessions after discussion with commerce ministry. The Andhra Pradesh leaders are raising the issue of self-esteem of the Telugu community and in this case, even the Tamil Nadu and Kerala states are likely to raise the issue.
Central Finance officials say that the state has not shown accounts of a single rupee even though the central government has paid Rs 12,500 crore in the four phases for Polavaram and Revenue Loss.
The Finance Ministry has reportedly said that AP leaders might even ask the funds for the Defense Department.