The Centre has authorised the Governor of existing State of Andhra Pradesh to make any expenditure, which he deems necessary, before the appointed day from the consolidate fund of the State of Telangana.
The Andhra Pradesh Reorganisation Act, 2014, published in the Gazette of India on Saturday states that the Governor is authorised to spend funds for a period up to six months from the appointed day pending its sanction by the Legislative Assembly concerned. However, such expenditure has to be authorised by the Governor of Telangana after the appointed day. The Gazette further says the award of the Thirteenth Finance Commission to the existing A.P. shall be apportioned between the successor States by the Centre on the basis of population ratio and other parameters. A reference is also made to the Fourteenth Finance Commission on the appointed day to make separate awards for successor States.
The Centre may make appropriate grants and ensure that adequate benefits and incentives in the form of special development package are given to backward areas of A.P., particularly to Rayalaseema and North Coastal regions.
On the apportionment of assets and liabilities, the Gazette says the successor States shall receive benefits and bear financial liabilities arising out of the decisions taken by the existing A.P. All land and stores, articles and other goods belonging to the existing A.P. shall be passed on to Telangana if they fall within the transferred territory or they remain the property of the A.P. The properties situated outside the existing A.P. shall be apportioned between the successor States on the basis of population ratio.
The operational units of public undertakings in the existing A.P. shall be apportioned between the two successor States on location basis.
