Amaravati, May 23 (IANS): In the biggest grant to Andhra Pradesh since the state's bifurcation, the Centre on Tuesday disbursed Rs 10,460.87 crore as compensation towards revenue deficit.

The funds were released as part of dues under the Andhra Pradesh Reorganisation Act, 2014, and come after a series of meetings between Chief Minister Y.S. Jagan Mohan Reddy and Prime Minister Narendra Modi this year where the Chief Minister had repeatedly pitched for the release of funds which were promised to the state at the time of bifurcation.

Mahendra Chandelia, Assistant Director at the Ministry of Finance, directed that the release of Rs 10,460.87 crore be done "immediately" under the 'Special General Financial Assistance' category,A as part of revenue deficit in the financial year 2014-15.

The Centre usually releases funds in installments but for the first time that such a huge grant has been released in one go.

The state government said that these funds will be used to finance a variety of development projects, including infrastructure development on one hand and welfare including education, housing, healthcare schemes on the other.

Expressing happiness over the grant of funds, Advisor to the Government of Andhra Pradesh, Sajjala Ramakrishna Reddy stated that this compensation had been given only due to CM Jagan's persistence, determination and his credibility. He added that these funds were not only the right of the State government but also the responsibility of the Central government.

Slamming TDP President Chandrababu Naidu, Ramakrishna Reddy said that the current development was a slap on the face of all those who questioned CM Jagan's frequent trips to Delhi. He reiterated that all of the CM's efforts were always to work for the people and improve their standard of living and the Prime Minister paid heed to his sincerity and persistence.

Calling out the "failures" of the TDP regime, Ramakrishna Reddy said: "Naidu during his regime had utterly failed to convince the Centre to release the rightful dues to the state. Today, he and his aides are unable to digest the fact that funds are flowing into the state effectively. So now, instead of rejoicing for the people, they will spend all their energies in spreading poison and fake news. There is absolutely no cure to their jealousy."

"In fact, the lack of cordial ties with the Centre during the TDP government and the lack of any inflow of funds from the Centre from 2014-2019 was proof of Chandrababu's absolute incompetence. Despite being an alliance partner, Chandrababu held the state hostage for his personal interests and failed at getting funds for the state. Today, People's CM has won. CM Jagan has done what no one else ever could manage," he added.