The Two Telugu States after demerger: Different Political & Economic Contours

Book excerpt: The real strengths of TS & A P revealed after demerger The demerger of the united Andhra Pradesh was a long drawn political imbroglio. The merger was not rcommended by SRC and Telangana people did not want it. Andhra state becoming unviable after their peremptory separation from Madras state in 1953 had merged with the well to do Telangana in 1956 with the help of central government,with some guarantees to Telangana. Then with their majority, they usurped all the political power to make use of Telangana revenue and its other resources . For, Andhra region revenue income was always less than its expenditure. To make good their deficit, Telangana revenue was used perennially, making less expenditure in Telangana than its due. Congress though conceded Telangana state under duress, has granted several sops to Andhra, as if it was the sufferer. Poor Telangana which was the victim of exploitation was to satisfy with its bare minimum state. Yet, residual A P has lamented with victimhood, injustice and developing Telangana with their own resources etc. Andhra had deficit from 1953 to 1956. It has a balanced budget in the united state from 1956 to 2014, as it was made good with the siphoning of revenue from Telangana. In 2014-15,immediately after demerger,it has registered a big deficit of around Rs.12000 cr exposing its legacy of inherent economic weakness. A P also has got about Rs. 52000 cr deficit grant from two Financial Cmmissions from 2015 to 2026 .Yet the A P finances continued to be precarious year after year. Telangana using its suppressed economic strength surged ahead climbing to the top rung of the economic status of the states in India. Andhra, using Telangna revenue neglected increasing its State Own Tax Revenue (SOTR), is now exposed of its concealed economic weakness. A P has a SOTR of about 50 % in its total revenues, while TS has more than70 %, as against 46% of national average.That reveals the real economic strength of both the states after the demerger. It amply vindicates Telangana claims and proves wrong the false premises of Andhra.