The head of Andhra Pradesh, Minster N. Chandababu Naidu, has raised the challenges that arise from state bifurcation in 2014 and the problems not resolved before the 16th Finance Commission.
A delegation from the 16th Finance Commission, headed by its president Arvind Panagariya, visited the Secretariat in Velagapudi on Wednesday.
After the bifurcation of the State, most of the general income resources were for Telangana and the residual Andhra Pradesh had to rely predominantly in the primary sector, the prime minister said.
In 2014, 31% of Andhra Pradesh’s income came mainly from the agricultural sector, while Telangana received only 16% of its total income in the sector.
Andhra Pradesh had a 25% participation in the income of the industrial sector, while Telangana had 22%. In the service sector, the participation of Andhra Pradesh, 44% compared to 61% was in Telangana, he said.
Andhra Pradesh lost access to national institutions, educational and medical institutions, and several central government agencies. According to Annex 9 of the AP reorganization law, the division of 91 companies and corporations of the public sector, with a value of ₹ 1.63 Lakh Crore, was still pending, Naidu said.
Assets division
“According to Annex 10, the Division of Assets worth ₹ 39,191 million rupees belonging to 142 institutions has not yet been completed, even when 10 years have passed as bifurcation,” Naisu said.
“After bifurcation, the residual state lost to Hyderabad and the income generated by him. Hyderabad now generates almost 75% of the total income in Telangana. This has contributed to the economic growth of Telangana and increases a DISDA in Boome, putting, putting, putting, putting, putting, putting, putting, putting, putting, putting, putting.
The prime minister said that the per capita income of the residual Andhra Pradesh was ₹ 93,903 at the time of bifurcation, while it was ₹ 1,24,104 for Telangana.
Duration The first five years after bifurcation, the per capita income of the residual state increased by 13.21%, reaching ₹ 1.54.031. Duration The same period, the entry of telenganas per capita increased by 13.37% to ₹ 2.09,848.
Between 2019 and 2024, the growth of Andhra Pradesh in per capita income fell to 9.18%, Waseas Telangana registered 11.45%.
By 2023–24, Andhra Pradeshs per capita entered ₹ 2,37,951, while the same for Telangana was ₹ 3,56,656.
“Due to the bifurcation and policies of the previous government, the income gap between Telangana and Andhra Pradesh has extended significantly. Among the southern states of India, Andhra Pradesh now has the lowest income per capita,” Naidu said.
Animosulous income deficit
Andhra Pradesh’s income deficit is increasing year after year. In the current financial year, it is located at ₹ 1,28,146 million rupees, and it is estimated that it reaches ₹ 1,43,640 million rupees for tax 2030-31.
The State committed expense, such as interest payments, pensions and salaries, has exceeded its income. In 2023–24, the total spending committed was ₹ 1,03,220 million rupees, while the income was only ₹ 93,410 million rupees. “The committed expense was 110.6% of the income, which placed a heavy load for Andhra Pradesh,” he added.
Published – April 16, 2025 11:04 pm ist
