Post bifurcation, residue Andhra Pradesh was expected to face huge budget crunch as most of revenues of erstwhile AP are concentrated around Hyderabad city. Political analysts assumed that residue-AP will run with a deficit of 14000 crores and above, while Telangana’s treasury will end up in a surplus of 6000 crores even after spending. However the figures that are registered after Appointed Day have surprised Central government and that is why AP was not allotted funds in India’s budget.
Bringing cheers on the faces of newly formed Andhra Pradesh government’s faces, revenue of the first month after bifurcation has risen like a phoenix. Without share of any revenue from Hyderabad, residue Andhra Pradesh has amassed around Rs 5480 crores, while Telangana managed only Rs 3822 crores. Of course, these figures indicated that the revenues are proportionate to population ratio of 58:42 in AP and Telangana respectively. Seems like, bifurcation hasn’t affected the revenues of Andhra and Rayalseema region much, if we have to go by these figures.
Contrary to the fears of united-AP supporters, residue Andhra Pradesh has upper position in revenue collections from all big sources like Excise, Central taxes, VAT revenues, Transport, Stamps and registrations. Earlier many Andhra businessman like Nagarjuna Fertilizers and other liquor manufactures used to pay taxes in Hyderabad as it happens to be capital of AP. And after bifurcation they have submitted their registrations to residue-AP and that affected the income of Hyderabad circle.