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Fiscal positions of Andhra & Telangana: Who needs central funds more & why

Andhra Pradesh relies more on central transfers than Telangana

Fiscal positions of Andhra & Telangana: Who needs central funds more & why
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Ishan BakshiAbhishek Waghmare New Delhi
The demand by Chief Minister Chandrababu Naidu on special status for Andhra Pradesh (AP) might have created fissures in the ruling National Democratic Alliance. A Business Standard analysis of the fiscal positions of AP and Telangana, which was carved out of it in 2014, throws up four salient points:
 
First, in the years since its bifurcation, AP’s tax collection has grown at a much slower pace compared to Telangana. Second, it relies on transfers from the Centre to fund its expenditures to a much greater extent than Telangana. Third, Andhra’s debt dynamics are far worse than Telangana, leaving very