A notion that all the taxes being paid in the city of Hyderabad continue to remain with Telangana post bifurcation was disproved by the latest set of figures compiled by the state finance department. According to these figures, the state capital contributes just around Rs 15,000 crore to the state's own resources, which stood at Rs 68,000 crore in 2012-13.
The leaders, who are opposed to the state bifurcation, usually cite the tax collections of Hyderabad, saying that the residual Andhra state will not be in a position to pay salaries to its employees as the capital city alone accounts for 40% of the state's own revenues. These old figures were simply based on the location of payment of taxes by companies and did not reflect the actual revenue generation pattern now, the officials say.
"For instance all the oil companies pay value added tax (VAT) on petroleum products in Hyderabad as their head offices are located in the state capital. Once the state is divided, they will have to pay the tax to the respective states based on the actual consumption in the new jurisdictions," a senior finance department official said.
The finance department's numbers pertaining to the state's own resources (tax and non tax) are as follows: Seemandhra and Telangana (minus Hyderabad) contributed Rs 32,000 crore and Rs 21,000 crore respectively while the capital city' share under the Greater Hyderabad Municipal Corporation(GHMC) limits stood at Rs 15,300 crore, around 22% of the state's own resources.
These revelations also refute the frequent comments being made by the Telangana protagonists that the Seemandhra region has been fed by the resources generated and owned by Telangana region as, according to the new figures, about 48% of the state's own resources come from coastal Andhra and Rayalaseema districts.
The report submitted to the Group of Ministers (GoM), dealing with the bifurcation issue, covering total resources (state's own resources, the share in Central taxes, grants in aid by the Government of India and the borrowings) gave 52% share or Rs 66 152 crore to Seemandhra and 48% or Rs 61,414 crore to Telangana with Hyderabad. In Telangana, the nine districts account for Rs 41,391 crore and Hyderabad, the tenth district, provides Rs 20,022 crore, according to the report. According to these figures, Hyderabad's share in total resources is little over 15%.
While the state's own resources were computed according to the actual district wise revenue generation data, the share in the remaining resources was calculated on the basis of population in the respective regions, according to the finance department. This has further changed the final picture on how much resources both the regions will have at their command post bifurcation.
According to the latest population census, AP has a population of about 8.46 crore people. Of them 42% are in Telangana and 58% are in Seemandhra region. Now, the Seemandhra leaders have been pitching for an equal share in resources generated by the capital city for the next 10 years despite Hyderabad's status as a part of Telangana.
The leaders, who are opposed to the state bifurcation, usually cite the tax collections of Hyderabad, saying that the residual Andhra state will not be in a position to pay salaries to its employees as the capital city alone accounts for 40% of the state's own revenues. These old figures were simply based on the location of payment of taxes by companies and did not reflect the actual revenue generation pattern now, the officials say.
"For instance all the oil companies pay value added tax (VAT) on petroleum products in Hyderabad as their head offices are located in the state capital. Once the state is divided, they will have to pay the tax to the respective states based on the actual consumption in the new jurisdictions," a senior finance department official said.
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Commercial tax (VAT) revenues based on the actual consumption patterns of goods and commodities by the people have been heavily concentrated in Seemandhra(48%) and Hyderabad(upto 27%), leaving just around 21% to the nine districts of Telangana region, according to the officials. Commercial taxes form over 50% of the state's own resources while close to 30% of the total VAT revenue comes from the sale of petroleum products.
The finance department's numbers pertaining to the state's own resources (tax and non tax) are as follows: Seemandhra and Telangana (minus Hyderabad) contributed Rs 32,000 crore and Rs 21,000 crore respectively while the capital city' share under the Greater Hyderabad Municipal Corporation(GHMC) limits stood at Rs 15,300 crore, around 22% of the state's own resources.
These revelations also refute the frequent comments being made by the Telangana protagonists that the Seemandhra region has been fed by the resources generated and owned by Telangana region as, according to the new figures, about 48% of the state's own resources come from coastal Andhra and Rayalaseema districts.
The report submitted to the Group of Ministers (GoM), dealing with the bifurcation issue, covering total resources (state's own resources, the share in Central taxes, grants in aid by the Government of India and the borrowings) gave 52% share or Rs 66 152 crore to Seemandhra and 48% or Rs 61,414 crore to Telangana with Hyderabad. In Telangana, the nine districts account for Rs 41,391 crore and Hyderabad, the tenth district, provides Rs 20,022 crore, according to the report. According to these figures, Hyderabad's share in total resources is little over 15%.
While the state's own resources were computed according to the actual district wise revenue generation data, the share in the remaining resources was calculated on the basis of population in the respective regions, according to the finance department. This has further changed the final picture on how much resources both the regions will have at their command post bifurcation.
According to the latest population census, AP has a population of about 8.46 crore people. Of them 42% are in Telangana and 58% are in Seemandhra region. Now, the Seemandhra leaders have been pitching for an equal share in resources generated by the capital city for the next 10 years despite Hyderabad's status as a part of Telangana.