Centre Denies Additional Funds for Telangana Under APRA Act
Union government states all funds under APRA Act already released to Telangana.
Photo by Sai Sumith
Key Facts
APRA funds released: ₹2,700 crore
Installments: 6 of ₹450 crore each
Beneficiary: Telangana State
Act: Andhra Pradesh Reorganisation Act, 2014
UPSC Exam Angles
GS-2 (Polity & Governance): Issues related to federal structure, devolution of powers and finances up to local levels and challenges therein.
GS-3 (Economy): Government Budgeting, Resource Mobilization
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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More Information
Background
Latest Developments
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.
