While the Telangana government is preparing to present its maiden budget next month, sharing of revenues with Andhra Pradesh is going to be a knotty issue. With both Telangana and AP slugging it out, this unresolved crisis may force TS to forgo nearly one-fourth of its annual revenues for the current year.
Sources say that during the first quarter of the fiscal year 2014-15, taxes including VAT, motor vehicle tax, excise, and stamps and registration duties were collected as per united AP account and it was deposited in RBI account of residuary AP. The estimated value of this corpus is reportedly over Rs 18,000 crore.
According to guidelines of the AP State Reorganisation Act 2014, the revenue was supposed to be shared between TS and AP in a 42:58 ratio, out of which TS claims a share of Rs 7,500 crore. The AP government has refused this argument of its neighbouring state saying that the T-state should also take into accounts the expenditures for those three months for both the states before claiming this revenue.