Says Fourteenth Finance Commission report vindicated the ‘historic truth’ of diversion of resources

Hyderabad: The diversion of resources from Telangana to the successor State of Andhra Pradesh after and before the bifurcation of State had badly affected the financial position of Telangana, Finance Minister E Rajendar said on Wednesday.Presenting 2015-16 budget in the State Legislative Assembly, he said based on the past trends observed in the combined State, per capita revenue and revenue expenditure of AP had been estimated for the year 2015-16 at Rs 11,872 and Rs 18,281 respectively.

In contrast, for Telangana, it has been estimated at Rs 16,274 and Rs 16,042 which clearly established the fact that higher revenue expenditure in AP was being financed through the diversion of resources from Telangana, he explained.  “Despite adequate revenue potential, Telangana suffered because of diversion of its resources. Telangana’s share in expenditure remained much lower than its share in revenue collection,” the Minister said adding that this was also corroborated by the findings of the Lalit Committee appointed by the Centre to estimate the revenue surplus of Telangana in relation to the expenditure incurred.

The fourteenth Finance Commission which has recently submitted its report has also vindicated the ‘historic truth’ of diversion of resources from Telangana in the combined State. The commission has placed Telangana in the category of pre-devolution revenue account surplus States along with Gujarat.

This, along with the categorisation of AP as a post devolution deficit State, has established the fact that the higher share of expenditure incurred in AP region of the erstwhile united AP was financed by the revenues collected in Telangana, he pointed out.      The Minister said unfortunately the past injustice could not be rolled back. Now, the time has come to make up for the lost opportunities and historic wrongs by optimally utilising the resources.