2024 · Paper IV · 10 marks

"Telangana region in united Andhra Pradesh was not given due importance in allocation of funds by the successive governments during 1956-2014." Critically analyse.

In short

Evidence shows Telangana was systematically under-funded in united Andhra Pradesh, though its structural backwardness and weak absorptive capacity also played a part. Rural electrification favoured Andhra 4:1 in the Second Plan and 5:1 in the Third, and this neglect became a key force behind the statehood movement.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Fund allocation to Telangana during united Andhra Pradesh (1956-2014) was marked by regional disparities that intensified socio-economic and political tensions, culminating in Telangana’s statehood in 2014. These disparities reflected deeper issues of political marginalization and economic neglect that shaped the region’s development trajectory.
Patterns and Evidence
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Disproportionate Development Indicators

Telangana lagged in literacy (17.3% vs. 30.8%) and road density (9 vs. 37 miles per 100 sq. miles), reflecting lower infrastructure investment. This gap was evident in lower per capita income and limited access to basic services.

Reasons for Neglect
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Political Dominance of Andhra Leaders

Andhra political leadership controlled budgets, skewing fund allocation away from Telangana. The Mulki Rules protecting Telangana employment, though upheld by the Supreme Court in 1972, were diluted in practice and replaced by the Six-Point Formula in 1973, undermining local job security.

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Weak Regional Safeguards

The Telangana Regional Committee failed to enforce the 1956 accord’s provisions on fund allocation and employment. Administrative centralization in Hyderabad benefited non-local elites, limiting fund flow to Telangana’s rural areas.

Socio-Economic Consequences
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Rise of Separatist Sentiment

Economic grievances fueled the 1969 Telangana agitation and later movements demanding separate statehood. Social unrest and political instability disrupted governance and development efforts.

Way Forward
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Decentralize Fiscal Powers

Empower Telangana local governments with fiscal autonomy and direct central funds access to reduce dependence on state-level allocations. Targeted investments in irrigation and social sectors are essential to bridge historical gaps.

Conclusion
Systematic under-allocation of funds to Telangana entrenched regional disparities, necessitating focused post-2014 interventions such as Mission Kakatiya and Rythu Bandhu to redress historical neglect and promote balanced development.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: The development gap at a glance. The development gap at a glance. Comparison of Telangana and Coastal Andhra
Diagram: The development gap at a glance

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This chapter in the exam

Telangana economy: Hyderabad State, united AP, GSDP, poverty3 questions

Asked in 2 of 2 sittings since 2016

2016
1
2024
2

Most tested: Fiscal and structural analysis of Telangana’s economy in relation to united Andhra Pradesh and post-2014 state performance.

Question from the official TGPSC Group-I Mains 2024 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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