Estranged ally, Telugu Desam Party (TDP) on Friday pulled out of the National Democratic Alliance (NDA).
The decision was taken following a tele-conference conducted by Andhra Pradesh Chief Minister Chandra Babu Naidu with his party members.
The party will also move a no-confidence motion against the Centre, in the Parliament, today.
Meanwhile, the YSR Congress has written a letter to Lok Sabha Secretary-General for moving a motion on 'No-Confidence in the Council of Ministers' in the house.
On Thursday, the TDP chief N Chandrababu Naidu in his state assembly speech said: "If necessary, we will support the no-confidence motion against the Centre, whoever may place it."
The Andhra Pradesh Chief Minister said his party would support anybody who moved a no-confidence motion in the state's interests.
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The BJP and its Andhra ally TDP have been sharing a sour relationship following the announcement of the Union Budget 2018-19, over the issue of granting 'Special Category' Status to Andhra Pradesh.
While the TDP has been alleging that the Centre neglected the state in the budget, the BJP rejected the charges and said the Centre not only fulfilled all its obligations but also went out of its way to help the state.
The TDP MPs have been regularly staging protests in the Parliament over the issue.
On the direction of Naidu, two TDP Ministers Ashok Gajapathi Raju and Y.S.Chowdary also resigned from the Union cabinet.