Prolonged Delays in Releasing Telangana’s Funds for Common Institutions Persist

Quick Summary

• Telangana is facing delays in the reimbursement of ₹408.49 crore spent on constitutional and statutory institutions, including the High Court and Raj Bhavan, which served both Telangana and Andhra Pradesh during Hyderabad’s time as a joint capital.
• The matter was raised in the Lok sabha on August 11, 2025, by Congress MP Chamala Kiran Kumar Reddy.
• Union Minister of State for Finance Pankaj Chaudhary confirmed that communications from Telangana requesting reimbursement had been received. Reconciliation of expenses between the two states was advised with Principal Accountant Generals.
• The Union Home Secretary sent a interaction to the Comptroller and Auditor General (CAG) on June 25,2025,to expedite reconciliation efforts; though,progress remains stalled.
• Telangana Deputy Chief minister Mallu Bhatti Vikramarka previously requested intervention from Union Finance Minister Nirmala Sitharaman for faster fund release and inclusion of interest payments.

Indian Opinion Analysis

The persistent delay in resolving financial reimbursements tied to Andhra Pradesh-Telangana bifurcation highlights challenges in implementing agreements made during such critical legislative transitions. Cooperative federalism is often cited as essential for smooth coordination between states; yet bureaucratic hurdles like delayed reconciliations can erode trust and efficient governance practices.The Centre’s arbitration role becomes crucial here-not only as a facilitator but also as an enforcer of commitments made under constitutional frameworks.

If unresolved promptly, such financial disputes could strain inter-state relations further while diverting attention from developmental priorities within both states. Clarity mechanisms and stricter timelines could mitigate similar issues going forward while reinforcing collaborative governance across India’s federal structure.

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