The undivided Andhra Pradesh has been putting up a budget of over One Lakh Crore for several years. It is a general observation that the revenues and expenditures will be divided between both the states and obviously budgets of Telangana and Andhra Pradesh should reflect them.
However both the states have tabled more than One Lakh budgets with so much of deficit between resources available and expenses. Incidentally both the new governments chose to put up no new taxes on people and as a result there are no new sources of income. Both the states have put up huge estimations of help from Central government and other amounts should be borrowed from outside sources if they do not have to decrease the allocations made.
On the other side, experts say both the states have decided to downplay their real situation so as to more deficit and bag as much as help as possible from the Center. Finally, both these Budgets are interim budgets and a clear picture of where the two states stand will only emerge when they put up full budget in February next year.
