The memorandum submitted by the Telangana government to the 14th Finance Commission has raised fears that the number of people visiting Hyderabad will drop drastically and there is likely to be a consequent fall in sales of petroleum products and other commodities.
The memorandum also pointed out that many dealers reported sales only in Hyderabad though the products were sold all over undivided AP, creating a false picture that Hyderabad has a huge revenue-generation potential.
“With limited revenue potential of eight of the ten backward and drought-prone districts and imminent erosion of the tax base in the remaining two districts, the fiscal scenario is bleak and a matter of serious concern”, says Telangana government.
The Telangana government has also raised a key issue that a systematic erosion of resources has been done between 2001 and 2010 as large tracts of government land, particularly on city outskirts in Ranga Reddy district were sold to private parties for over Rs 9,000 crore.
“The claim that the combined state developed the capital city of Hyderabad falls flat. People in RR district, more particularly farmers, have lost their livelihood forever”, said the report.