The Telugu Desam Party (TDP) is on its way out of the National Democratic Alliance (NDA) at the Centre . The ruling party of Andhra Pradesh has accused the the Central government of not giving it enough financial assistance to compensate for the losses it suffered due to carving out of Telangana in 2014. The two TDP ministers have resigned from the Union cabinet while two BJP ministers too have left the Andhra state cabinet.Below is a brief summary of the dispute between the TDP and the Central government:The TDP head and Andhra Pradesh Chief Minister Chandrababu Naidu has accused the Central government of not compensating the state adequately after Telangana was carved out of it in 2014. Andhra Pradesh did suffer financially from the bifurcation and the AP Reorganisation Act, 2014, did promise a special-category status to Andhra Pradesh. The status means the Centre and state finance the Centrally sponsored schemes in the ratio of 90:10 instead of 60:40 as is the case with other states.The Central government says it can’t give the special category status to Andhra even if it wants to. Why? Because the 14th Finance Commission, which decided how the Centre and states share finances, restricted the provision of special category to only the north-eastern and three hilly states. Yesterday, Finance Minister Arun Jaitley said he was bound by the constitution.Not really. Jaitley agrees that Andhra needs special economic assitance after the bifurcation. He has offered financial assitance equivalent to what a state gets from a special-category status—the 90:10 funding of central schemes in the state— through other means like external agencies. Naidu wants the funds throgh Nabard which Jaitley says would add to fiscal deficit unless it’s through creation of a special purpose vehicle (SPV). Jaitley said he had yet to hear from Andhra Pradesh on this proposal. Jaitley also said the Centre had already paid Rs 4,000 crore to Andhra for the revenue deficit due to the bifurcation of the state, and only Rs 139 crore remained to be paid on that count.After Hyderabad went to Telangana, Andhra Pradesh started buidling a new capital, Amaravati, which requires huge funds. The estimated cost is Rs 58,000 crore. The Centre has given Rs 2,500 crore which the state government considers too little. The Polavaram irrigation project, which has to be inaugurated in 2019, too requires huge funding. While the Centre has given Rs 4,660 crore for it, Naidu wants the Centre to bear the entire cost, nearly Rs 58,000 crore, including that of rehabilitation of those displaced by the dam.Many people think Naidu is pulling the TDP out of the NDA because he wants to appear the wronged party before the state elections next year. He can turn the financial discord between Andhra and the Centre into an emotional issue of discrimination against the people of Andhra.