The Minister's comments come at a time when Andhra Pradesh Chief Minister N Chandrababu Naidu has sought special category status for the State; there is speculation that the Telegu Desam Party (TDP) may leave the NDA if the demand is not met.
According to the media reports, two TDP ministers in the union cabinet - YS Chowdary and Ashok Gajapati Raju - are likely to submit their resignation by Saturday.
The demand was raised after erstwhile Andhra Pradesh was bifurcated.
The statements made by the FM have apparently not gone down well with Chief Minister Nara Chandrababu Naidu and the party members. At that time, special category state concept did exist.
"The way the centre behaved with us is not at all acceptable".
Asked about Congress President Rahul Gandhi's promise to give the state the special category status if his party is voted to power, Jaitley said, "I still have to follow constitutional award" of the 14th Finance Commission. Accordingly, among the benefits claimed by these states are funding of centrally sponsored schemes and Externally Aided Projects (EAP) under 90:10 (Centre: State) fund sharing basis, fiscal incentives, infrastructure support and other such concessions.
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BJP-TDP alliance is on the rocks and TDP is leading the protest against the BJP-ruled Centre in the Parliament over the issue of Special Category Status. They staged a protest by holding placards demanding Special Category Status to the State on the premises of Parliament.
Naidu hoped the Centre would at least now respect the sentiments of people of Andhra Pradesh. The 14th Financial Commission said no special status, but we made a decision to compensate the revenue deficit for a certain period.
Jaitley had on Wednesday said that special category status can not be given to Andhra, but added that a special package would be given to the state.
Mr Jaitley said that the Centre is committed to giving AP financial assistance equivalent to what a special category state gets.
"The Centre stands committed to satisfy every condition".
Clarifying the provision of tax and revenue deficit, Jaitley stated that tax concessions were already given in the first two years, along with provision for revenue deficit as per the Finance Commission.