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4 Feb 2026·Source: The Hindu
4 min
Polity & GovernanceEconomyNEWS

Centre Denies Additional Funds for Telangana Under APRA Act

Union government states all funds under APRA Act already released to Telangana.

Centre Denies Additional Funds for Telangana Under APRA Act

Photo by Sai Sumith

The Union government has ruled out further release of pending funds for the development of backward regions in Telangana under the Andhra Pradesh Reorganisation Act (APRA), 2014. Union Minister of State for Finance Pankaj Chaudhary stated that the entire amount of ₹2,700 crore, allocated in six installments of ₹450 crore each, has already been released to Telangana. This allocation was made under Section 94(2) of the APRA, which supports programs for developing backward areas in the successor states, including infrastructure expansion. The funds were distributed at ₹50 crore each for the nine erstwhile districts in Telangana, categorized as backward in terms of social and physical infrastructure. Despite requests from successive state governments, the Centre has denied further funding.

Key Facts

1.

APRA funds released: ₹2,700 crore

2.

Installments: 6 of ₹450 crore each

3.

Beneficiary: Telangana State

4.

Act: Andhra Pradesh Reorganisation Act, 2014

UPSC Exam Angles

1.

GS-2 (Polity & Governance): Issues related to federal structure, devolution of powers and finances up to local levels and challenges therein.

2.

GS-3 (Economy): Government Budgeting, Resource Mobilization

3.

Potential question types: Statement-based, analytical questions on center-state financial relations

Visual Insights

Telangana: Allocation of Funds under APRA 2014

Map showing the location of Telangana and the erstwhile districts that received funds under Section 94(2) of the Andhra Pradesh Reorganisation Act, 2014.

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📍Telangana
More Information

Background

The Andhra Pradesh Reorganisation Act, 2014 was enacted by the Parliament of India to bifurcate the erstwhile state of Andhra Pradesh into two separate states: Telangana and Andhra Pradesh. This act outlines the terms and conditions for the division of assets, liabilities, and resources between the two states. It also includes provisions for the development of backward regions in both states to address regional disparities. Section 94 of the Andhra Pradesh Reorganisation Act, 2014 specifically deals with special measures for the backward areas. This section mandates the Union Government to provide financial assistance for the development of these regions. The identification of backward areas and the allocation of funds are based on various socio-economic indicators, including infrastructure development, literacy rates, and poverty levels. The objective is to bridge the development gap between these regions and the more prosperous areas of the states. The implementation of the Andhra Pradesh Reorganisation Act, 2014 has faced several challenges, including disputes over the division of assets and liabilities, delays in the allocation of funds, and disagreements between the two states on various issues. The Union Government plays a crucial role in resolving these disputes and ensuring the effective implementation of the Act. The allocation of funds for the development of backward regions is a key aspect of the Act, aimed at promoting inclusive growth and reducing regional disparities.

Latest Developments

The denial of additional funds by the Union Government to Telangana under the Andhra Pradesh Reorganisation Act, 2014 highlights the ongoing financial disputes between the state and the center. Successive state governments in Telangana have been requesting additional funds for the development of backward regions, citing the need for further infrastructure expansion and socio-economic upliftment. The Union Government's decision to deny these requests underscores the fiscal constraints and priorities of the central government. The allocation of funds under the Andhra Pradesh Reorganisation Act, 2014 is subject to periodic reviews and audits by the Union Government. These reviews assess the utilization of funds and the progress of development projects in the backward regions. The Union Government's decision to deny additional funds may be based on the findings of these reviews, which could indicate that the allocated funds have not been effectively utilized or that the development targets have not been met. Looking ahead, the state government of Telangana may explore alternative sources of funding for the development of backward regions, including state government resources, public-private partnerships, and external funding agencies. The state government may also engage in further negotiations with the Union Government to address the outstanding financial issues and secure additional resources for development projects. The focus will likely be on demonstrating effective utilization of previously allocated funds and presenting a compelling case for additional financial assistance.

Frequently Asked Questions

1. What is the Andhra Pradesh Reorganisation Act (APRA), 2014 and why is it important?

The Andhra Pradesh Reorganisation Act, 2014 was enacted to bifurcate the erstwhile state of Andhra Pradesh into Telangana and Andhra Pradesh. It's important because it outlines the terms for dividing assets, liabilities, and resources between the two states, including provisions for developing backward regions.

2. What are the key facts about the APRA funds released to Telangana for the UPSC Prelims exam?

For the UPSC Prelims, remember that ₹2,700 crore was released to Telangana under the APRA Act in 6 installments of ₹450 crore each. These funds were intended for the development of nine erstwhile districts identified as backward.

Exam Tip

Focus on the total amount, installment amounts, and the purpose of the funds.

3. Why is the Centre's denial of additional funds to Telangana under APRA in the news recently?

The denial is in the news because successive Telangana state governments have been requesting additional funds for developing backward regions, citing the need for further infrastructure expansion and socio-economic upliftment. The Union government has stated that all funds have already been released.

4. What is the total amount of funds allocated to Telangana under Section 94(2) of the APRA, and how were they distributed?

A total of ₹2,700 crore was allocated to Telangana under Section 94(2) of the APRA. The funds were distributed in six installments of ₹450 crore each, with ₹50 crore allocated to each of the nine erstwhile districts in Telangana identified as backward.

5. What are the potential implications of the Centre denying additional funds for Telangana under the APRA Act?

The denial of additional funds could potentially slow down infrastructure development and socio-economic upliftment in the backward regions of Telangana. It may also strain the relationship between the state and central governments.

6. Who is Pankaj Chaudhary, and what is his role in this issue?

Pankaj Chaudhary is the Union Minister of State for Finance. He stated that the entire amount of ₹2,700 crore allocated under the APRA Act has already been released to Telangana, effectively denying further funds.

7. What is the historical background to the Andhra Pradesh Reorganisation Act, 2014?

The Andhra Pradesh Reorganisation Act, 2014 was a result of demands for a separate Telangana state. It led to the bifurcation of the erstwhile state of Andhra Pradesh into the states of Telangana and Andhra Pradesh.

8. What are some of the common misconceptions about the Andhra Pradesh Reorganisation Act, 2014?

A common misconception might be that the APRA only deals with the division of assets. In reality, it also includes provisions for the development of backward regions and other crucial aspects of governance.

9. From an interview perspective, what arguments could Telangana present to justify its request for additional funds under the APRA Act?

Telangana could argue that the initial allocation was insufficient to address the long-standing developmental deficits in the backward regions. They could also highlight specific projects that require further funding to achieve their intended outcomes.

10. What reforms, if any, are needed in the Andhra Pradesh Reorganisation Act, 2014, based on the current developments?

Based on the current developments, there might be a need for a clearer mechanism for addressing disputes regarding fund allocation and utilization between the Union and the successor states. This could involve establishing an independent review body or arbitration process.

Practice Questions (MCQs)

1. Under which section of the Andhra Pradesh Reorganisation Act, 2014, was the allocation of funds for the development of backward regions in Telangana made?

  • A.Section 92(1)
  • B.Section 93(2)
  • C.Section 94(2)
  • D.Section 95(1)
Show Answer

Answer: C

Section 94(2) of the Andhra Pradesh Reorganisation Act, 2014, specifically deals with the allocation of funds for the development of backward regions in the successor states, including Telangana. The Union government allocated ₹2,700 crore to Telangana under this section. The other options are incorrect as they do not relate to the specific provision for backward regions development.

2. Consider the following statements regarding the Andhra Pradesh Reorganisation Act, 2014: 1. The Act provides for the bifurcation of Andhra Pradesh into Telangana and Andhra Pradesh. 2. Section 94(2) of the Act deals with special measures for the development of backward areas in the successor states. 3. The entire amount allocated to Telangana under Section 94(2) was ₹3,000 crore. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statements 1 and 2 are correct. The Andhra Pradesh Reorganisation Act, 2014, indeed bifurcated Andhra Pradesh into Telangana and Andhra Pradesh, and Section 94(2) addresses the development of backward areas. However, Statement 3 is incorrect. The entire amount allocated to Telangana under Section 94(2) was ₹2,700 crore, not ₹3,000 crore.

3. The funds allocated to Telangana under Section 94(2) of the Andhra Pradesh Reorganisation Act, 2014, were intended for which of the following purposes?

  • A.Infrastructure expansion in backward regions
  • B.Debt repayment of the state government
  • C.Funding for new welfare schemes
  • D.Salary payments for government employees
Show Answer

Answer: A

The funds allocated under Section 94(2) of the Andhra Pradesh Reorganisation Act, 2014, were specifically for programs aimed at developing backward areas in the successor states, including infrastructure expansion. The allocation was intended to address the social and physical infrastructure deficits in these regions. The other options are not the intended purposes of these funds.

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