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Saturday, August 3, 2013

Telangana Economic Future is Bright - Smaller population and higher revenues

Telangana has lower population than Andhra yet Telangana has been contributing a larger share of revenues than the rest of the Andhra Pradesh. Despite contributing more to the state treasury, Telangana received lower share in the expenditure and thus severely depriving the people in their overall development.

Let us look at facts that were analysed by Gautam Pingle, Director, Centre for Public Policy, ASCI, Hyderabad:

Population: Telangana has 3.5 crore population as against the rest of the Andhra Pradesh which is 4.9 crores. Clearly, Telangana has lower population.

Revenue contribution: If we take annual averages from year 2003 to 2006, Telangana accounts for an annual revenue of about Rs.9900 crore, against approximately Rs. 11,000 crore from the rest of AP.

Per-capita revenue contribution in the said period has been Rs. 2829  in Telangana while it was only Rs. 2244 in Andhra.

Government of Andhra Pradesh's expenditure on Telangana is about Rs.5,300 crores against residual AP's Rs.7,000 crore.

The net surplus of the revenue that Telangana had during this period is Rs.4,600 crore as against the Andhra which was generating only Rs.4,000 crore.

In conclusion, there has been a clear disparity between the disproportionate spending in the two regions. While this has been one of the reasons for the people's struggle, there is one thing to cheer about now and that is, Telangana will be a new state. The fact that we have higher net revenues surplus with lower population is a fact that should boost our confidence to build a economically vibrant state by the people of Telangana.


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