B.P.R.Vithal:  Telengana Surpluses – A Case Study

Telengana Surpluses can be loosely defined as the States' Own Revenues derived within the Telengana Region which had not been utilised exclusively for the development of that region. The method of calculating such surpluses, and the manner, in which they were utilised became issues in the regional politics of the State, from time to time. However, quite apart from this, this entire issue provides an excellent case study in the inter-play between budgeting and politics and, more specifically, in legislative control over financial administration. The fact, that the controversies may have arisen out of regional politics, does not detract from the importance of the issues for financial administration in general. The basic issue arises out of a political agreement, gets complicated by a political agitation which raises it to the level of a Center-State issue and, is finally resolved by a Constitutional amendment, A case study with all these ingredients would be rare to find.

The Telengana Regional Committee was a Committee of the Andhra Pradesh Legislative Assembly. During the years it was in existence, it was exercising effective and meaningful control over public expenditure, in respect of items that fell within its purview by virtue of the statutory provisions. The issues raised by the Committee may have had a political background, but the reports produced by the Development and Finance Sub Committee and the Regional Committee were professional in their analysis and presentation. The issues were similar to those, which a Public Accounts Committee or an Estimates Committee would raise. The inter-action between the Regional Committee and representatives of the State Government involved, essentially, legislative control over the executive, even if, in this case, the control was restricted to Telengana issues. The case study should, therefore, have wider interest and relevance. I was Planning Secretary for sixteen years and Finance Secretary for eight years. By coincidence, I am the only Planning or Finance Secretary of Andhra Pradesh, before 1982, who is now alive. This is another reason why I thought I should do this case study, at least for historical and academic interest

During the period covered by this study, I had the privilege of enjoying the confidence of the two successive Chief Ministers concerned, and of the Chairman and the important members of the Regional Committee. I have, however, refrained from using any information that may have come to my knowledge, by virtue of the confidences I so enjoyed. I have used in this study, only published material, government orders, press notes, and my own notes of that time (Working Paper No. 44).