Hyderabad: Telangana and AP State governments are set to resolve the long pending un-apportioned debts and liabilities issue between the two States at a high level Inter-State Finance Officers meeting to be held at Amaravati on Wednesday.
Nearly Rs 7000 to Rs 8,000 crore debts need to be apportioned between the two States as per the AP Reorganisation Act. The pending debts include capital expenditure, GPF and reserve funds which would have to be shared between the two States.
The Reorganisation Act says that all liabilities on account of public debt and public account of the united Andhra Pradesh shall be apportioned on the basis of population ratio of the successor States unless a different mode of apportionment is provided under the provisions of this Act.Top officials of the Telangana State government told The Hans India that an official delegation led by State Deputy Secretary (Finance) A Sai Prasad would hold meeting with his AP counterparts and sort out the issue of sharing the debts piled up in the united Andhra Pradesh.
It is the first meeting being organised by the officials of the two States this year. The bank loans taken by the then governments for the construction of irrigation projects, road development schemes and other infrastructure development programmes in Andhra Pradesh state would have to be divided and repaid by the respective State governments. The division of GPF of the employees of both States would also have to be shared by the two States. In many cases, the two State governments would make book adjustments on the payment of debts. In some instances, governments would clear the debts and liabilities through money.
Officials said that the mounted debts put heavy burden on two State exchequers due to delay in the apportionment of debts for the last three years. The two governments have already locked horns on the division of assets and liabilities. With the intervention of the Union government, AP and Telangana governments began talks to resolve the contentious issues.