TDP breaks ties with BJP, pulls out of NDA

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"What is the objective of putting our members in the Central cabinet?"

Jaitley said, "We are willing to satisfy every condition".

Naidu's announcement came barely hours after Union Finance Minister Arun Jaitley told a press conference in New Delhi this evening that funds equivalent to what a special category state receives would be extended to Andhra Pradesh, but drew a line saying politics can not increase the quantum of money.

The Andhra CM said that it is wrong to compare Andhra to other states that are backward.

In discussions between the Union Expenditure Secretary and State government officials on February 6 and 7, it was decided that the higher allocation through NABARD to Andhra Pradesh would be routed through a special goal vehicle. He added that he tried to reach out to the PMO but that it was unavailable on Wednesday.

The finance minister said on February 6 and 7, delegations from Andhra Pradesh met him, and they were advised to float a special objective vehicle in the state, and NABARD will fund that corporation, and the Centre would pay 90 per cent therein. "Let us bear whatever difficulty, but we will take a right decision at the right time", the chief minister told his party MPs during a teleconference this morning. Earlier in the day, while speaking on the issue of according special status to Andhra Pradesh, Finance Minister Arun Jaitley on Wednesday said one of the promises was that Andhra Pradesh should be given special status.

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With Eastern states too backward in revenue, we offered special status. He gave an account of the UCs sent to the Centre.

Arun Jaitley clarified government's stand on granting special category status and said it is provided to states which do not have adequate resources. We are awaiting their response. Hectic parleys are being held between state and Central BJP leaders and TDP leaders.

In a press conference that lasted a little less than an hour, Naidu virtually accused the Modi government of insulting him and betraying the people of Andhra Pradesh.

However, all Naidu did was further expound on the "betrayal of people's trust" by the Union government. As no funds have been released under this agreement and as there was no mention of releasing special package funds to AP in the Union Budget 2018-2019, the political consensus in Andhra Pradesh has now again become focused on special category status. TDP cried hoarse that it had been given a raw deal.

For North Eastern states and three hill states in the country, the Finance Commission suggested special status.