Hyderabad. Andhra Pradesh State Division. Hyderabad revenues key to prosperity
Hyderabad News. Dc 10.02.10
(Excl Ventures News) Hyderabad contributes nearly 40 per cent of the revenue to the state exchequer, which is worrying United AP activists.
Out of AP’s total income (taxes) of Rs 54,142 crore shown in the Budget for 2007-08, Rs 19,026 crore came through sales tax and nearly 40 per cent of it was from Hyderabad metropolitan area comprising Hyderabad and Ranga Reddy districts.
Further, Hyderabad accounts for 40 per cent of the Rs 7,000 crore paid by three Centrally owned petroleum companies to the state government as tax and 50 per cent of the Rs 3,086 crore contributed by the stamps and registration department.
It is estimated that the revenue from Hyderabad metropolitan area will take care of the development expenses of the rest of Telangana’s districts.
“This is where the argument of common capital comes in,” said the former minister, Mr Somireddy Chandramohan Reddy. “Coastal Andhra and Rayalaseema would not be able to pay even salaries to its employees because of poor revenues.”
But economists don’t buy this argument. “There is no link between contribution from a particular state and the disbursement of funds by the Centre to it,” a financial expert said.
Comment :
Division of an existing state is not a simple process. All aspects including the economic stability of split entities have to be ensured. Obviously the expert panel that has been set up might go into all such matters
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