Reinventing Telangana

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Socio Economic Outlook 2016…1

Reinventing Telangana:

The Way Forward


Telangana, the youngest State in the Union of India, was the result of a prolonged struggle, actively participated by the people cutting across all sections, for a new life of hopes and aspirations. The genesis of the movement can be traced to a deliberate neglect of Telangana in the combined State of Andhra Pradesh, in most areas such as, water resources, finance and employment opportunities, popularly known as, “Neellu, cheap methocarbamol Nidftulu, Niyaamakaalu.” order albuterol buy premarin  

  1. The Legacy of Neglect

The assessment of past expenditure has clearly established the fact that there has been significant under- spending in Telangana, relative to its revenue generation. As per the report of the Lalit Committee appointed by the Government of India in 1969, the overall budgetary surplus of Telangana during 1956 to 1969, was about Rs. 85.83 crore, though the present value of this is much more in terms of economic loss along with loss of several direct and indirect benefits in terms of income, employment and public revenues. This report was analysed by the noted economist Prof. CH. Hanumantha Rao in his book entitled, Regional Disparities, Smaller States and Statehood for Telangana, to quantify the neglect of Telangana area during this period.

Based on the district-wise revenue receipts and expenditure during the years 2004-05 to 2012-13, the Fourteenth Finance Commission came to a broad conclusion that Telangana districts accounted for 49.5 percent of resources raised by the combined State of Andhra Pradesh, of which only 38.5 percent of the revenue was spent in Telangana area. The districts of Andhra and Rayalseema regions accounted for 50.5 percent of revenues and 61.5 percent of total revenue expenditure of the combined State. Thus, surplus revenue in Telangana was entirely on account of deliberate neglect and under-spending in relation to revenue

collections and developmental needs and not on account of the higher revenue potential. Transfer of surplus budgetary resources continued all through the 58 years from 1956 to 2014 , causing low public investment in socio-economic development, resulting in inheritance of a lopsided economy.



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