Two states: Andhra struggles to succeed while Telangana is about to slip into deficits !!

Vishnu Shankar:

Almost 2 years after the bifurcation, neither Telangana nor Andhra is in a happy state. Andhra is struggling with its revenue deficit and a not very co-operative centre ( despite all the promises). The story of Telangana is even more interesting. It started off as a revenue surplus state. KCR is never tired of calling it a rich state but in less than 2 years he has almost managed to convert it into a revenue deficit state. It is not revenue deficit officially yet, but is almost there and will become one by 31st March 2016.

So what happened to Telangana ?? It is difficult to get state wise real time economic reports in our country and the local media is usually not interested in news that really matters. In that background here is report in Hans India on the state of Telangana economy. You can read the full report HERE.

Here are some important points on Telangana economy.

  1. In the 2015-16 budget, the revenue was shown as Rs 94,132 crore. The present financial year would be ending in 45 days and so far the revenue is only Rs 54,000 crore. 
  2. Non-tax revenue was shown in 2014-15 as Rs 13,242 crore and in 2015-16 it was shown as Rs 22,413 crore. Obviously this did not happen.
  3. Out of 133 lakh acres of cultivable land, only 103 lakh acres were cultivated this year. Crops in the fifty per cent of the cultivated land withered away due to the deficit rainfall. The yield has considerably come down. Out of the estimated production of 115 lakh tonnes of food grains the yield may be 65 lakh tonnes. Even in 2014-15 also the production of food grains was only 65 lakh tonnes out of the estimated production of 105 lakh tonnes.
  4.  Out of the 9,900 industries in the State, about 3,000 industries were closed due to shortage of raw material, power, water and transportation.
  5. A revenue surplus state at the time of formation in 2014, it has now turned into a revenue deficit state. The government which claimed that Telangana was a rich State is now shy of reconciling to the truth of deficit budget.
  6. Not a single project has been completed in the last two years though the government claimed allocation of funds in the budget. The works on all projects were stopped in the name of re-designing. Even the projects which were completed 70 to 80 per cent were also not completed.

Not that everything is rosy in Andhra Pradesh. There too, there is a deficit in revenues which are short of budget plans. You can read the following report. However, the figures being given out by the AP government are at least true and transparent.

What really takes the cake in Telangana is that the state government has closed down its website which shows all the government orders, or GOs as they are called. Try clicking on http://goir.telangana.gov.in/. ( you can access any Andhra GO though on http://goir.ap.gov.in/ )Which means the decisions of the Telangana government are now confidential and there is no way any common man can know anything on what the government is doing. This is really surprising and goes against the norms of transparency which should be followed by a democratically elected government.

In short, so far the bifurcation has helped neither Telangana nor Andhra Pradesh. Let us see what happens in future.

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One thought on “Two states: Andhra struggles to succeed while Telangana is about to slip into deficits !!

  1. Does it mean the revenue of Telengana is ahead of Andhra’s by Re 10,000 cr?
    I wonder how the relocation of the Andhra state government and other corporation head quarters with operations in Andhra would affect these numbers after couple of years? Plus, what are the non-revenue numbers for Telengana?

    Like

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